Growing Importance of the Digital Payments in India
Cash has been the base for any kind of transactions. Without cash, we literally feel like we are blind and would not be able to move. But maintaining of cash is very risky. It tends to get spoilt and damaged due to overuse and exposure to bad weather conditions. Keeping too much cash also involves the chances of theft or robbery.
Another disadvantageous point of cash is that they require a lot of costs to be produced. Plus, the government cannot keep track of how much cash one is keeping with them. This also hides that fact if the person is paying his taxes regularly.
Thus, keeping this in mind the government of India demonetized all the notes of 500 and 1000 denomination. This is an effort that will pave the way for the digital economy. The experts say that it is a great way to curb out black money from our society.
Curbing Out Black Money
Since the demonetization announced by the honorable Prime Minister Narendra Modi, the 500 and 1000 notes have gone out of use. Though new notes of 500 and 20000 are introduced the people are not finding suitable opportunities to use. This is because of the shortage of cash no one is ready to give out change for such big notes.
This state of crisis has been a boon to the online payment companies. Although they had been there for a long time now, but their demand grew literally overnight. The digital know your customer process will make the processes more transparent both for the users and for the companies.
Massive Digital Growth
The National Electronic Fund Transfer (NEFT), IMPS services is going to increase. These are going to be a boon for the digital payments in India. This will lead to the growth of the companies that deals in online payments. Even some of the banks that provide the services are going to earn more revenue through these services. This is just an initiation to make digital India.
No More Hassles Carrying Cash
Now when you go anywhere, you do not have to carry any liquid cash. If you are an online seller, you can provide digital wallets where your potential customers can store their digital cash. Even for buying products you do not have to ask or cash. Your customers can opt for the pre-paid payment instruments.
Nowadays, several online shopping sites are also providing immediate payment services, so as to avoid the hassle of paying cash when the product reaches your customers. The payments have become much easier now. Anyone can pay for the products they choose online.
Security of the Money
The digital banking is much more secure. You can make online transactions safely and securely. They have targeted segments and have targeted specific communication services. They are available in different languages. This can improve awareness among the people.
There are still several challenges that exist in the growth of the digital economy of India. The most primary challenge is that the customers are still not aware of the fact that adopting digital payments can actually be beneficial for them.
Thus, the whole of the nation and specifically the ones that are ignorant of the fact are required to be made aware. The major issue is that trust and reliability are synonymous with the cash. They must be made to understand the financial services and digital payments. They would actually help the people more than costing them any extra amounts.
Thus, this gives a scope of e-commerce payment growth in the country making India a prosperous country. This would bring back normalcy in the economic condition, removing out the black money from the society.