Blog on e- Wallet
Paper Money, as we use it today, became popular in India in the late Eighteenth Century. Thus, Paper money being used in India now since almost nearly 300 years became accepted as a legal tender. But on 8th November 2016, Indian Government announced that currency of Rs.500 and Rs.1000 was no longer a legal tender. Indian government is trying to reduce paper money and intends to promote cashless counters. Indian government wants cashless economy in India. A cashless transaction is a smart way in which all the transactions are done using different types of cards (debit, credit, pay money) or digital means, which is also called payment by e- wallet. Presently, India uses too much cash for transactions. The literacy rate of India is 74% according to last census 2011. In that situation when 26 % people are not able to read and write anything, it may be difficult for them to manage cashless counters. Further, about 70% people live in rural areas where most of them do not know about pay tm, e wallet, credit card, debit card etc. It is a challenge both for government as well as for those people who have not even heard about e wallet. There is different mobile apps like Jio money, pay tm, pay u money, mobikwik to pay money anywhere in India. Indian government also advertised these mobile apps to pay paisa. Is it appropriate for rural areas people? Undoubtedly, Indian government must take some effective step to educate, and train how to use e wallet and convey to the rural mass about benefits of e wallet.
Cashless economy has many benefits such as the abolition of a black economy where money is exchanged in illegal transactions, or as payment for criminal activities. The greatest advantage with cashless payment is convenience and possibly this can give platform for an increase in transactions.
When your money is struck in your pocket, it does not help anyone but when you deposit it into bank, it may help others either for car loan or home loan or to do other works.
E -wallet reduces chance of theft and reduces cost of printing of currency and drawing of coins, problem of change of notes and coins. In short, it has more control over money system.
e- Wallet counters promote transparency and accountability, decrease transaction costs. However, cashless transaction has many drawbacks also such as loss of card, pin and/or password loss, issues arising out of computer hackers.
Thus, e- Wallet is not for everyone especially poor people’s group are not able to use and enjoy the facilities of e wallet because they do not know how to handle the computer, mobile and electronic gadgets.
Indian government has, therefore, a big challenge as to how to promote cashless transactions by reducing the risks involved, inculcate the habit of cashless transactions among all class of people by providing suitable training and increasing mass awareness.
Cashless economy has many benefits such as the abolition of a black economy where money is exchanged in illegal transactions, or as payment for criminal activities. The greatest advantage with cashless payment is convenience and possibly this can give platform for an increase in transactions.
When your money is struck in your pocket, it does not help anyone but when you deposit it into bank, it may help others either for car loan or home loan or to do other works.
E -wallet reduces chance of theft and reduces cost of printing of currency and drawing of coins, problem of change of notes and coins. In short, it has more control over money system.
e- Wallet counters promote transparency and accountability, decrease transaction costs. However, cashless transaction has many drawbacks also such as loss of card, pin and/or password loss, issues arising out of computer hackers.
Thus, e- Wallet is not for everyone especially poor people’s group are not able to use and enjoy the facilities of e wallet because they do not know how to handle the computer, mobile and electronic gadgets.
Indian government has, therefore, a big challenge as to how to promote cashless transactions by reducing the risks involved, inculcate the habit of cashless transactions among all class of people by providing suitable training and increasing mass awareness.
