Why there is dire need to have a cashless economy
There is a dire need to eradicate shadow economy and opined that use of digital payments will bring in more transparency and accountability and will lead to further growth in GDP and economy.
This was stated by Union Finance Minister Arun Jaitley while releasing the ‘less cash campaign road map” of the Confederation of All India Traders (CAIT) , July 6. Complimenting CAIT for conducting the campaign he said, “Black Money is a plague for the economy and needs to be weeded out from the system.”
CAIT’s is undertaking a nationwide campaign for promotion of usage of digital payments across the country in line with Prime Minister Narendra Modi’s call for converting Indian economy into cash-less economy.
Over the next 40 days CAIT will hold an aggressive campaign for the promotion of cash-less economy, and then observe August 15 as Less Cash Day all over the country. During the campaign, the CAIT will organise seminars, conferences, round table and workshops in different states, emphasizing the need of adoption of electronic payments as mode of payment among trading community.
It will also submit a blue print of its road map to union ministers, chief ministers, finance ministers of all states, senior officials of union & state governments, leaders of all political parties and MPs of both Lok Sabha & Rajya Sabha. Beside traders, the CAIT also intends to rope in farmers, transporters, SMEs, hawkers, consumers, self employed groups, women entrepreneur and other sections in its campaign.
The Minister called upon the people to avail the scheme of the Union Government for voluntary disclosure. Significantly, the proposed GST Model Bill also provides for all taxes to be paid through either Debit/Credit Card or through NEFT or RTGS. This means adoptiong of electronic payments by trade and commerce industry will pave a way for easy compliance of GST taxation system as well.
There are about 5.77 crore small businesses in the country. The promotion of less cash campaign will not only allow consumers the convenience of paying through electronic means i.e. credit/debit cards and wallets, but also pave the way for critical investments in promoting businesses online.
“We are committed to pursue our vision for promotion of Less Cash system in trade and commerce which will enable India to see double digit growth. Cash-less economy is critical for the large community of self-employed, small and medium business owners,” said CAIT secretary general Praveen Khandelwal
“But the Government should make specified rules and regulations for e-commerce business in India and also bring in a policy to provide incentives like tax benefits etc. for encouraging people to use electronic payments-added both trade leaders,” said CAIT national president B C Bhartia.
Despite being advantageous, cash transactions are a dominant mode of doing business in our country. This is because increased cyber-crime and limited ability of government to look through digital records makes people skeptical of undertaking cash-less payments. While benefits of digital payments are widely understood, the growth in acceptance infrastructure has not kept pace with the growth in cards.