The cashless wave emerged just after demonetisation in 2016 in India.
Currently, due to the Covid-19 pandemic, a massive transformation to a cashless economy has emerged in India.
However, some people are more comfortable in making cash payments in all manners and forms under the Digital India initiative’s sub-program.
Under Cashless India, the government aims to make India a ‘faceless, paperless, cashless’ society by 2021.
As per a study, in 2020, easing of the national lockdown saw an uptick in digital transactions to Rs 2.18 lakh crore in May, primarily due to the fear of contracting Covid-19 through cash transactions.
Apart from convenience, digital payments offer the promise of greater transparency and reduced dependency on middle-men and banking monopolies.
Why is going cashless good for a housing society?
This is quite a cumbersome task for Managing Committee members to visit the bank physically to deposit/withdraw money if they want to pay or deposit huge sums of money towards society’s upkeep, repair and upgrade.
Housing societies usually collect maintenance fees in cash every month if the amount is under 3,000. It is time consuming, impractical and prone to theft or loss. Digital payment is a better option for society members and the Managing Committee.
Pros and cons of digital payments for a housing society and the Managing Committee
Reduces the chances of loss of money
Reduces the chance of robbery/theft
Avoids trips to the ATM
No chance of contracting Covid-19
No waste of time in writing cheques or visiting banks Ease of executing small, medium, or complex transactions
Prone to hacking and online fraud
Depends on WiFi networks and mobile devices