List digital measures released by Government committee to cut cash usage
Indian government has set up a panel which would come up with ways to promote digital payment modes among the people so as to reduce the use of cash for any transactions.
The new committee that has been set up to promote better ways of digital payment and doing away with cash usages has suggest ways in which one may be charged extra of they opt for cash transaction or payments. But then with this they have also recommended ways in making digital payments easier and accessible using mainly Aadhaar based transactions. Though the government has still not accepted this recommendation of the panel, they are surely thinking about it.
This committee from is being headed by Ratan Watal who is a former finance secretary. Now this committee has come up with certain measures that will cut down half of the cash usage in the country in just 30 to 90 days.
According to the new measures suggested by the panel a mechanism will be constructed that would include all the banks and the payment intermediaries so as to make a society that uses less of cash and more of online or digital payment modes.
A sudden push and development is being seen in the use and promotion of digital payments after the demonetization of the old Rs.500 and Rs.1000 notes which happened around a month back.
What the panel has listed down?
The panel has listed down the main reason behind the use of cash that make people wonder why the use of digital money. They say that people opt for cash money as it is convenient to use of instant settlements and is available all the time. And then there is this belief that cash transaction means that there is no transaction cost incurred.
So in order to change these believes the committee has come up with ideas that would use more of Aadhaar and mobile based systems that would help in no cash payment and that to at free of cost.
They have suggested that the banks and all other payment intermediaries should give priority to make cashless transactions.
Benefits can be availed because of the reducing cash usage
- With the limitation of the cash usage among the public, the inflation rate would be under control and this will sure leads to better environment to build better economy.
- By cutting the cash usage in India, the black economy would be reduced and black money holders would eventually get outnumbered from the Indian society.
- Also, the inclusion of fake currency would be stopped. Fake currencies are real threat to the nation’s economic growth as it will leads to unstable inflation rates in the market.
- At the last, the methods which are handled by the government in order to cut the cash usage will drive common people towards the digital processing. This will lead India towards on achieving the goal of the Digital India.
In this demonetization period, offering various benefits to common man people, to drive them towards the digital processing will provides better results in nearby future. Also, by making Indians to get stick with the modern technologies would improve the literacy rate among the Indians. The government new policy of cutting cash usage is highly welcomed by several economists across the nation.