Cashless Transaction - Advantages of Cashless Transactions (2024)

Summary: Going cashless is the financial revolution we need. It's more than just a shift; it's an efficient, secure, and inclusive way to transact, bringing us closer to a transparent and prosperous economy.

08 Jan 2024 by Team FinFIRST

The wave of digitisation has touched every corner of the world, and India is no exception. As we witness an increasing inclination towards digital services, acashless economy is the future. Wondering how? This is owing to the advantages of a cashless economy. Before deep diving into the benefits of cashless economy, let’s understand what a cashless transaction is.

This refers to the absence of physical currency and emphasises the use of cashless transaction modes. These cashless payment modes include mobile banking, net banking, UPI, etc. They offer convenience, security, and efficiency, thereby transforming our financial experiences.

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5 ways to go cashless –

Here are 5 effective ways in which you can complete your financial transactions without physical cash:

• Net banking

This is an excellent medium for those who prefer accessing their bank accounts from their computers or laptops. With secure login credentials provided by banks, customers can conduct a plethora of cashless transactions seamlessly.

• Mobile banking

With the proliferation of smartphones, mobile banking has emerged as a go-to solution. From paying bills, and transferring funds, to checking account balances, every transaction can be executed with a few taps.

• UPI (Unified Payments Interface)

UPI is an instant real-time payment system developed by NPCI (National Payments Corporation of India). This allows multiple bank account holders to send or receive money via a mobile application. The attraction point of UPI lies in its simplicity, where users can perform a cashless transaction just using their UPI ID.

• Digital wallets and payment apps

Apps like Paytm, Google Pay, and PhonePe have transformed the way we transact. These digital wallets offer incredible ease in performing transactions and come with several offers and cashback, making them highly enticing for users.

• Debit and credit cards

Widely accepted across various outlets, both online and offline, these cards have made cashless shopping a breeze. As they are secure and easy to use, they act as modern wallets.

IDFC FIRST Bank, being at the forefront of the digital transformation, understands the gravity of this shift and encourages its customers to adopt cashless payment methods.

Advantages of cashless economy – What are the advantages of cashless transactions?

Here’s how cashless transactions can help make your life easy:

• Convenience

With cashless payment methods, there is no need to hunt for change or visit ATMs. Everything is at your fingertips.

• Safety and security

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.

• Economic benefits

Cashless transactions reduce the cost of printing currency. Moreover, with easy traceability, it can deter black money and illicit transactions, leading to a more robust economy.

• Promotes financial inclusion

With the push towards cashless transactions, even the remotest parts of India have seen increased accessibility to banking services. This has propelled financial growth and inclusion.

• Transparency and accountability

Every cashless transaction leaves a trace, making it easier for individuals and businesses to keep track of their expenditures and incomes. This aids in accurate financial planning and budgeting.

The journey towards a cashless economy is not just about leaving behind currency notes, it is about adopting an efficient, transparent, and inclusive financial system. The advantages of cashless transactions are numerous, and with institutions like IDFC FIRST Bank leading the way, the future of digital banking looks bright.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circ*mstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.