The government would like you to go cashless
The government has been trying to curb the usage of black money in India. One of the major problems they face is the dependence on cash transactions in the country. Such transactions are harder to trace and easier to hide.
The dependence on cash transactions also creates invisible leakages when it comes to government subsidies reaching the right people.
In the forthcoming Union Budget 2016, the government intends to promote cashless payment methods such as debit/credit cards along with online payments. As mentioned in earlier Tell Me News Posts, the government is also contemplating tax rebates to encourage usage of electronic payment means.
One major move could be the increase in the reportable level of credit card transactions of banks from Rs. 2 Lakh to Rs. 5 Lakh, to encourage high-value transactions through non-cash means.
What should you do?
Start adopting electronic payment methods such as online banking or even digital wallets, if you haven’t already. They are likely to be the future of payment everywhere and they allow you access to new age services which can make life more convenient for you.