Going Cashless to Showcase More Drawbacks on People than Gains

BENGALURU: After the hustle and bustle of the demonetization effect, people are really confused about taking a firm stand on dealing with the issue. With people heading out on a cashless environment, the confusion gave the way to a flurry of concerns. The economic times gives us a glimpse of the drawbacks of demonetization. In order to shift towards a cashless economy, government is taking an initiative to make the digital transaction seamless. One such initiative is giving rash discounts and freebies on digital transactions.

The rising cases of online fraud can only increase the chances of hacking. Moreover, limiting the online transaction to 2,000 will not help unless an additional layer of security is implemented. Since the mobile phone is a key for all the transactions, losing the phone can make a person susceptible to identity theft.

Similarly, another problem arises when the phones run out of battery. One should keep their phones constantly charged to prevent the battery from getting drained during an emergency of processing transactions. According to the Internet Live Stats, India has a low penetration of 34.8 percent (2016) and of all the mobile phone users, only 26.3 percent holds a smartphone which proves that the population takes time to adapt to the challenge.

Although the convenience of cards and e-wallets are high, the spending behavior is also expected to rise. Several behavioral finance theorists also proved that the pain for partying with money is felt more with physical cash. Hence, using physical cash instead of card can actually control the spending behavior. However the legacy of using cash is more acquainted to liquid as always, instead of digital payments.

Read Also:
How To Minimise Environmental Impact From The Pharmaceutical Industry
Google Facing Federal State Commission Inquiry over New Privacy Policy