Government of India is encouraging people to move towards a Cashless Economy. Cashless Economy can be achieved when the use of cash within the economy is gradually reduced and all transactions are made through electronic channels such as direct debit, credit and debit cards, electronic clearing, and payment systems such as Immediate Payment Service (IMPS), National Electronic Funds Transfer (NEFT) and Real Time Gross settlement (RTGS) in India.
The advantages to citizens of a country in a Cashless Economy are:
- Cash need not be carried to avail goods and services. Risk of carrying currency notes and loss of hard earned money can be avoided.
- Extra payment on account of non-availability of change is avoided resulting in payment of what is actually due to be paid. Transaction costs are likely to be reduced.
- Convenience in shopping, payment of bills and scheduling of financial transactions can all be managed from home, office or wherever you are with a smart phone.
- It helps to authenticate financial tran