ADVANTAGES OF DIGITAL PAYMENT SYSTEM IN INDIA

To days world is fast heading towards cashless system , which includes all activities of Finance and Trade  . Because  more cash handling means more corruption which gives rise to lot many other social evils .The main draw back is , the persons or group of person's involved in corrupt practices go unnoticed without any record any where . 

In India the Hawala is a by product of this hard cash handling system . Crores of Rupees change hands without any notice or record. Here how the black money come into existence. Governments loose heavily on account of non payment of  tax  on such cash handling . Infact a parallel economy is being run to sabotage the countries economy through Fake currency . 

The hostile countries to India uses , Hawala Traders , Black marketeers , Terrorists ,Naxalited take full advantage of cash handling .In a step toward cashless system , an electronic payment system is being adopted which enables business to deliver, receive and process through electronic invoice submissions there by amount Payable(P) . and amount Receivable (R) is settled.

Paper-based payment system posses significant challenges to large organizations, stalling efficient workflows in P and R departments due to a heavy reliance on labor-intensive processes and data entry. Businesses that go paperless by implementing an electronic payment system realize enormous process efficiency and cost-savings benefits. 

Benefits of utilising an Electronic Payent system -----

Variety of Choice ---

Electronic payment systems allow financial institutions, businesses and the government to offer a variety of payment options to their customers as option. These systems include automated teller machines, debit cards, credit cards, mobile banking and payment of bills through the phone. Through Internet services, e-payment systems are available to a large number of clients in no time with all records available.

Reduced Costs ---

E-payments systems result in reduced costs for both businesses and individuals. Busines Houses save on operational and processing expenses thereby reducing overheads ,mainly due to  technological advantages  . Expenditures in paper and postage is cut down along with time spent . 

Reliability --

The use of e-payments , rule out the use of drafts , cheques , by transmitting cash instantly . This allows  faster execution of transactions -- waiting period for transactions is almost nil . Credit cards also allow for customers to take in transactions without having   immediate cash.

Enhanced Security --

The traditional payment systems  involved  post or physically methods of the transaction at site. This bears security risks I.e. if the post is  lost or fall into the wrong hands? Additionally, places where financial transactions is takeing place are away from security . Also E-payment systems offer encrypted services which protects the clients’ private information.

Simplify Dispute Management --

With an electronic payment system, companies enjoy improved data accuracy and automated disbursement along with receipt and payment processing to streamline vendor dispute management. 

Increased Compliance --

An electronic payment system makes it easier to track and monitor data to ensure adherence to complex compliance regulations and all business rules .

Many large global organizations are enjoying and reaping the benefits from employing an electronic payment system.

In line with above advantages of digital payment system  ,the Centre goverment has constituted a Committee of Chief Ministers headed by Andhra Pradesh CM Chandrababu Naidu to promote digital payment systems to promote transparency, financial inclusion and also prepare a roadmap in this regard.

According to officials, the terms of reference of the committee are identifying global best practices for implementing an economy primarily based on digital payment and examine the possibility of adoption of these global standards in the Indian condition . The high level group will also identify and address bottlenecks and indicate solutions pertaining to adoption of the steps required to move towards a digital payments economy.

It will also associate the key  members for implementation of the suggested steps towards a digital payments .It will also examine and address any other associated issues which are not specifically mentioned herein. The Committee may devise its own procedures for conducting business, meetings, constitution of sub-groups..Above step of government shall benefit in no. of ways & gives of Choice .

Electronic payment systems allow financial institutions, businesses and the government to offer a variety of payment options to their customers. These systems include automated teller machines, debit cards, credit cards, mobile banking and payment of bills through the phone. Traditional business payments systems depends mainly on a limited number of the business outlets situated in different locations. This limited the client coverage. Through Internet services, e-payment systems are available to a large number of clients.

E-payments systems result in reduced costs for both businesses and individuals. Businesses save on operational and processing expenses mainly due to reduction in technological costs -- i.e. the use of the  Internet , computers and other machines costs . Expenditures in paper and postage is cut down along with time spent .Customers also save on time spent in dealing with personal transactions as in traditional payment systems.

Benefits for being cashless -- Cost of handling cash is high, therefore it is in the favour of economies to go cashless. Recently transparency international  did a research on corruption in countries and results was that the cashless countries are in top-30 .

Direct Benefits -- As evident in today's scenarios

Separatist of Kashmir are badly affected . After the demonetization the Kashmir valley became cashless and thus directly affecting Pakistan nurtured separatist because they are not able to pay to unemployed people of Kashmir to show anger against Indian Government. If India became cashless there is no doubt that it will also become terror-less.

-Going cashless boost economy as cost of  paper money is high.

-Going cashless dethrone terrorism and criminals.

-To become corruption free one has to be cash-free.

-It also adds up to environment as no tree will be cut .

-It is anti-biotic for fake currencies treatent.

Say goodbye to cash system , and move towards cashless system in India .