Indian Government’s decision to fully digitize our economy ruffled many a business heads at the outset. Not anymore though.
As with any radical change, the initial rough phase has been left behind as we begin to soak in the many benefits of the much ambitious cashless economy.
Though many industries are yet to fall in line, the likelihood seems an eventual formality.
With factual consideration, it is now becoming increasingly clear that the gains from a cashless economy are far more than what was written off, or written about.
Benefits of a Cashless Economy
A totally cashless economy is indeed a not so certain possibility, at least, not in the near future.
Having said that, the ever-rising usage of various payment apps, mobile, and net banking provides a hopeful perspective.
A partially cashless economy can help our country in the following ways:
Saves Green Cover
Apparently, 22,000 metric tonnes of paper is used to print Indian currency, every year. 5,27,895 trees are sacrificed annually for this reason.
The point is now clear – the more we use digital currency, the lesser burden we put on mother nature.
A digital transaction secures a transaction as there is express proof of the transaction.
When a payment is digitally transferred, both the sender and the receiver are notified and also the record of this transaction is secured because the transaction goes through a bank, at most times.
Also, digital money cannot be stolen or lost in exception to extraordinary situations.
One can manage money more easily and efficiently when it is digitized. Ready to view transaction history, balance information, acceptance at most retail and wholesale outlets etc makes the use of digitized money a lot more feasible and effective.
Large amounts are spent annually on minting coins and printing the paper currency. On average, the paper currency is known to last for about 6 years only.
Such expenses are naturally saved when an economy goes cashless.
Also, the economy is a lot more organized and the government can make better decisions when the data from digital transactions are analyzed and interpreted.
How will eSignature help the cashless economy?
The Aadhaar based eSignature has proven to be a much-needed game-changer in India.
Businesses that have adopted the facility have been able to save massive turnaround time and boost their workflow.
While transactions are processed digitally, agreements for such transactions can be validated through an Aadhaar based electronic signature.
Very clearly, previously unthinkable convenience has been added to most business processes with the digital initiatives taken by the Indian government.
For the record, the eSignature is as legally valid as the physical (handwritten) signature in India according to the IT Act of 2000.
In fact, it has proven to be a more secure alternative as each eSignature undergoes an Audit which makes it a foolproof way of validating a document.
The marriage of digital currency with digital signatures has given massive power to the consumer.
While eSignatures are legally binding and have gained momentum in recent times, digital currency is already made its presence felt, especially after the Demonetization in 2016.
Going forward, the times are going to be anything but exciting and revolutionary for most industries as consumers are becoming increasingly aware of the many conveniences and the security eSignature offers, cashless economy or not.