Impact Of Digital Payments in India
After demonetization, Indian Government started encouraging digital payments. Digital payments can be simply defined as "Payments is done by digital means". In digital payments there will be no physical cash, instead, they will provide you some physical device such as cards, mobile phones etc., Using some payment interface customers make the payment. Examples for Digital payments are online recharging, Net banking, Electricity bill payments. Now a day's payments through mobile are gradually increasing. Paytm,free charge, mobiwik are some examples of mobile payments. Most of them prefer to pay through mobile phones because it's handy and can carry easily. The digital payments work with the aid of Information Technology. The payment is done through a highly secured payment gateway, so that is safer to pay. Also,it doesn't require any technical expertise to work on it. The following are the impact of Digital payments in India.
No Tax Evasion
As the currency changes from physical to digital payments,the chance of tax evasion will be reduced. By limiting the hard cash all the cash will come in under one system. So that no one can hide the cash. Which will result in increasing the number of taxpayers.
Government can Track the Money Flow
It will become easier to track the money flow while making the payments. They can easily track the source of money. This will later help the government to find the growth rate of the Nation. Based on that government can plan for new projects which will benefit the entire economy.