Helping Small Businesses Growwww.biz2credit.in

1800-3002-0653

India as a Cashless Economy

Benefits of India going cashless!

What exactly is a cashless economy?

GDP Growth

Better Administration

An economy completely driven by digital transactions.

1

2

3

4

Global ranking of Indian economy will grow.

Black money generation will be stopped thus reduction in corruption.

Greater efficiency in welfare programs, as money is transferred directly into the accounts of the beneficiaries.

More transparency in business operations regarding money transfers.

Improvement in NPA situation of banks and subsequent benefits.

1.

2.

3.

4.

Jump in collection of indirect / direct taxes thus improving the spending power of the government.

In the financial year 2015, RBI spent as much as Rs 27 billion on just currency issuance andmanagement; if we go cashless this could be saved.

A Moody’s report pegged the impact of electronic transactions to 0.8% increase in GDP foremerging markets and 0.3% increase for developed markets because of increased velocity of money.

To break the grip of corruption and black money, we havedecided that Rs. 500 & Rs. 1000 notes presently in use will no longer be legal tender.

“

”

An opportunity to grow as aCashless Economy - Digital Economy

8NOVEMBER

Impact of Taxation

Job Opportunities

Education

Reduced instances of tax avoidance, since the entire transaction history of an individual is available.

1. 5.

6.

7.

2.

3.

4.

1.

2.

3.

4.

The Make in India programme fuelled with cashless economy will further accelerate the job opportunities. It will invite participation from large global manufacturers thus opening gates for new job profiles. 2.75L New Jobs Created so far with 118% Increase in Employment.

Online admission form filing, fee submission, getting online education, online book bank and trainings will be the new approach to follow.

1.

2.

3.4.

Housing: Dream and think of affording it

A lot of black money gets invested in real estate which inflates the prices of real estate market, going cashless would control the prices.

Increasing deposits with banks would lower interest rates and help in realising this government’s goal of housing for all by 2022. It is expected that such increase in deposits can lower interest rates once the process of transition from old to new currency notes and restoration of liquidity has been completed.

Further, with many states likely to enforce the buyer friendly provisions of the Real Estate Regu-latory Act, homebuyers can expect more transparency.

Possible corrections in real estate which will impact the industry thus, Homebuyers can expect property prices to come down in certain pockets, which would provide an opportunity for them to make their move.

1.

2.

3.

4.

Schools cannot charge ambiguous fees if transactions go cashless thus making the industry more transparent with fee structure.

Donations made to schools will be accountable once every transaction becomes digital.

Considering that all schools will go digital it will directly impact the literacy level of the country.

With increase in government funding there would be an increase in infrastructure facilities as well, thus creating more job opportunities.

With growth in IT sector their will be requirement for more manpower. This will help in employing resources in a large scale.

With Indian economy going cashless many new companies will be formed to tackle the mobile payment services, digital transactions etc.

Incentives like 0.75 percent discount for people buying petrol, diesel via digital payment platforms.

No service tax on transaction upto INR 2000/-

A discount of 5 percent for transactions on digital payment mode for railway facilities like catering, retiring rooms etc.

A 10 percent discount on digital payments for RFID tax for highway toll has also been made.

In order to ensure government departments and public sector enterprises go on a cashless path,the Merchant Discount Rate will not be borne by customers for public dealings.

Public sector banks are advised that merchants should not be required to pay more than Rs 100 per month as monthly rental for PoS terminals/Micro ATMs/mobile. POS from the merchants to bring small merchant on board the digital payment ecosystem.