2. Minimizing Banking Cost: The use of credit or debit cards will definitely help banks to encourage customers to go digital with their transactions. This step buy the government will be welcomed by most of the commercial banks.

This will prove to be helping arm for the commercial banks in order to reduce their cash handling manpower.

3. Financial Inclusion: The government’s move for using cards will be a positive step for both microfinance and financial inclusion spaces. The use of electronic payments system will enable the unbanked financial industries to build a transaction history thereby initiating a step towards financial inclusion in the country.

4. Soiled Currencies: The Reserve Bank of India has to manage the issues related to the currency notes. So, every year it has to dispose soiled currency notes or default currency note which worth several crores. The step for cashless transaction will reduce disposing of currency notes and will also curb the problem related to such issues.

5. Aiding E- Commerce Companies: With the emerging of a number of e-commerce companies, there has been increasing demand in such services and products. Rapid improvement in the cashless transaction system will aid as a fast financing tool for e-commerce companies. Even these companies can move away from cash on delivery services and make instant profits.

All in total, the honorable Finance Minister’s idea of boosting the economy and making India a cashless transaction destination is likely to benefit everyone whether it be finance institutions or the common man.

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