Cashless transaction: Modes, advantages and disadvantages

Abstract

The RBI and the Government are making several efforts to reduce the use of cash in the economy by promoting the digital/payment devices including prepaid instruments and cards. RBI’s effort to encourage these new varieties of payment and settlement facilities aims to achieve the goal of a ‘less cash’ society. With limited cash in hand and an indefinite crunch in sight, most people are rushing to cashless transactions. Digital transactions bring in better transparency, scalability and accountability. The new move will compel more merchants to accept digital money. Cash may no longer be king.