The words “Demonetization” & Cashless Economy” are top trending since 8th November 2016 when Prime Minister of India Mr. Narendra Modi announced the ban on old currency notes of INR 500 & INR 1000. It was the revolutionary decision by PM as the entire country was not aware of this big surprise. Now the process of demonetization has almost come to its last phase of the drive. The Indian government is promoting cashless transactions in the country to hinder corruption and black money.
In the union budget of 2017-18, there have been many tough decisions made by the government to restrict cash transactions. There will be 100% penalty if someone accepts cash payment more than INR 300,000 and you can enjoy cash back and discounts by making the transaction by card, e-wallet or internet banking. The message is very clear, India is rigorously on its way to cashless economy.
There are many E-wallets & Payment banks to which have come into existence after the decision of demonetization. When the whole country was running short of cash and there long ques at the door of ATMs people had no option except using E-wallets like PAYTM, Freecharge & Mobiwik. All big to small vendors signed up for the digital payment system.
Indian government has launched some of its digital payment apps like BHIM smartphone app (Bharat Interface of Money) based on UPI (Unified Payments Interface) to deal cashless for everything and very soon it is coming with Aadhaar payment system where bank account will be linked to Aadhaar number and you just have to use your biometric to make any payment.
Below is the list of E-wallets and other digital payment apps which may come handy to you while making cashless payments:
- Mobiwik Wallet
- PayU Money
- Itz Cash
- Oxigen Wallet
- State Bank Buddy
- Pocket by ICICI Bank
- PayZapp by HDFC Bank
- Citrus Wallet
- Airtel Payment Bank
- Jio Money
- Ola Money
- BHIM (Bharat Interface for money)
and many others are there which you can download to your smartphone to make payment whether you are shopping in a supermarket or a sabjiwala vendor. You can make the payments in real time.
You may enjoy heavy discounts and cash back offered by these e-wallets. Almost every day these companies run promotions and provide the coupon codes to avail the same. The best idea is having a credit card where you can enjoy 5% cash back on shopping, utility bill payments and online spends. Carrying too much cash is not safe for anyone.
These all above efforts have been made by Indian Government led by its Prime Minister Mr. Narendra Modi to initiate the culture of cashless transaction across the country. National Bank for Agriculture and Rural Development (Nabard) has announced it will extend about ₹120 crore to banks for deployment of two point-of-sale (PoS) terminals each in one lakh villages with a population of up to 10,000.
Below are some benefits which can be availed by making cashless payments:
Service tax: Waiver of service tax of 15% on digital transactions up to `2,000.
Fuel: 0.75% discount on the digital purchase of fuel through credit/debit cards, e-wallets or mobile wallets.
Rail tickets: 0.5% discount on monthly and seasonal suburban railway tickets from 1 January 2017. Online rail ticket buyers get up to `10 lakh free accident insurance too.
Rail catering: 5% discount on digital payments for railway catering, accommodation, retiring rooms, etc.
Highway toll: 10% discount on NH toll payment via RFID or fast-tags in 2016-17.
Insurance: 10% discount by government general insurers on premium paid online via their portals. 8% discount on new LIC policies bought online via its site. POS: Rs 100 a month is the maximum rent that PSU banks can charge for PoS terminals.
Rupay: Kisan credit card holders to get RuPay Kisan cards.
In my opinion, this cashless economy drive is the masterstroke by PM Modi. This will help the country to defeat corruption in the country. I hope you guys will love this article. Please post your views on the cashless economy in the comment box below.