You’ve heard that now is the right time to go cashless. But should you?
Yes!
We all feel comforted knowing there’s cash in our wallet, but there are some great advantages of going cashless.
One: Your money is safe
Once your money is in your bank account, assets or investments, there is almost nil chance of it being lost, stolen or damaged, unlike paper money. With India’s robust banking system and several security measures in place, you don’t have to worry about your money falling into the wrong hands.
Two: Your money grows
When you put your money in even a bare-bones savings account, you earn interest. Plus, you have the option of investments like mutual funds and fixed deposits that get you returns over a period of time. On the other hand, the value of cash or “paper money” diminishes over time due to inflation. (For instance, Rs 100 can buy you more things today than it will after, say, five years).
Three: Better money management
Just a quick read of the numbers in your bank statement will indicate your income, spends, savings and return on investments. Armed with this information, you can plan for the short-, medium- and long-term future. So you can save up for a holiday in the next three months, for a car in the next two years, or for your child’s education twenty years later.
Four: Flexibility
With advanced technology and payment systems at our disposal, going cashless is as good as having cash. You can use your money in several different ways, and often almost instantaneously. So purchase air tickets, pay off your home loan EMI, or buy a life insurance policy without having to arrange for cash.
Five: Lower stress levels
Your grocery store doesn’t have change? Time to pay your electricity bill? No problem, there are a number of cashless options you can use. You won’t need to run to an ATM in the heat, or stand in line in the rain. In short, you save time, effort, transportation cost, and therefore, you can breathe easy.
FAQs
The advantages to cashless societies might include reduced physical crime (since there's no tangible money to steal), lower transaction costs and the convenience of not needing to carry cash.
What are the benefits of a cashless society? ›
The advantages to cashless societies might include reduced physical crime (since there's no tangible money to steal), lower transaction costs and the convenience of not needing to carry cash.
Why is going cashless a good thing? ›
Cashless society: advantages
When people are handling less cash, bank robberies, burglaries and corruption drop. Because cash is essentially untraceable, it's a useful tool for criminals, where digital currency is less easy to exploit, and can be shut down quickly if it falls into the wrong hands.
What are the positive effects of cashless policy? ›
The cash-less economy will bring about increased convenience, more service option, reduced risk of cash related crimes, cheaper access to banking services, and credit to customers. vii. Corporate organizations will benefit by way of faster access to capital, reduce revenue leakages and reduce cash handling cost.
What are the benefits of cashless transactions? ›
Cashless transactions eliminate the need to carry huge amounts of cash. This lowers the risk of witnessing loss or theft. Transactions are secured with encryption, which makes them tamper-proof. Cashless transactions reduce the cost of printing currency.
Why should we get rid of cash? ›
Cash can play a role in criminal activities such as money laundering and tax evasion. Using digital money prevents the transfer of physical money, and all transactions are handled using computers and the internet.
What are the pros and cons of a cashless economy? ›
On one hand, transitioning to a cashless system can reduce crime rates, streamline financial transactions, and simplify international payments. On the other hand, it raises concerns about privacy, cybersecurity risks, technological dependency, economic inequality, and the potential for increased overspending.
Why are people angry about cashless? ›
One of the problems with the shift towards a cashless society, according to critics, has been that it costs more for people who have to pay cash to do what they want to do.
Why shouldn t the US go cashless? ›
Decreased Monetary Security
When you have cash in hand, you know it's safe from everything except direct robbery or physical destruction. But when your money is in digital form, it's vulnerable to hackers and system malfunctions.
Why the future is cashless? ›
A cashless society offers a range of benefits such as convenience, transparency and stability. However, there are concerns about financial exclusion , privacy and security. It has been suggested that disadvantaged groups are most likely to be disproportionately affected by the transition away from cash.
What Are the Disadvantages of a Cashless Society?
- Increases financial exclusion. Unfortunately, a cashless reality isn't accessible to us all. ...
- Increased risk of cybercrime. ...
- Lack of privacy. ...
- Mandatory negative interest charges.
Even so, many people will continue to use cash in their daily lives. Many people say that they like cash because: It is a fast and convenient way to pay. It is very widely accepted.
How long until cashless society? ›
A cashless future enabled by technology
We may not be a cashless society by 2060, much less by 2030. But the fact is we're closer to becoming a nearly cashless society every day. The transition from a mostly cash to nearly cashless society didn't happen overnight.
Is going cashless a good idea? ›
Going cashless can be safer, more convenient and more rewarding. As fewer people use cash in everyday purchases, it's a good idea to start thinking about how cashless payments can work for you and how to maximize those benefits.
Why cashless is safe? ›
Cashless payments are considered safer than carrying cash for several reasons: Reduced risk of theft: When you carry cash, you are at risk of being mugged or pickpocketed. With cashless payments, there is no physical cash for someone to steal.
What country has gone almost completely cashless? ›
Just fill in our quick form. Norways is the most cashless country, with only around 2% of payments being made by cash, and 100% of the population having a bank account.
What are two benefits of being a cashless store? ›
Advantages of Cashless Transactions
- No Cash Processing Costs. Businesses that go cashless do not have to deal with the costs and fees associated with handling paper money. ...
- Checkout Efficiency. ...
- Less Risk. ...
- Save Time. ...
- Accounting Peace of Mind. ...
- Transaction and Processing Fees. ...
- Poor Customer Service. ...
- Customer Exclusion.
This study found that forming a cashless society is a solution to efforts to grow the economy and speed of transactions in society. Another benefit is preventing corruption, levies, and fraud where electronic payments made on record have suppressed crime.
How does a cashless society affect the poor? ›
Crucially, this substitution has significant consequences for social inequality: while people with higher incomes typically benefit from cashless payments through easy and frictionless payments and access to short-term credit, people with lower incomes become increasingly dependent on financial services for which they ...
How does going cashless help the environment? ›
True, new cashless technologies may be more energy efficient than the old ones, resulting in climate co-benefits. Cashless payments are greener, since stopping the use of physical cash saves on environmental cost and reduces the need for transport, for example, to pay bills, receive payments, or withdraw cash.
