Executive Summary- Demonetization has affected the daily lives of people who largely deal in cash transactions. There are many ways to do cashless transactions like using cards, using netbanking facilities, NEFT, RTGS and modern transaction methods like UPI and e wallets. You can help your employees and people you deal with on a daily basis like the maid and dhobi set up bank accounts.
There are differing opinions, views, comments and innumerable jokes on demonetization. But demonetization is having a huge impact on day to day activities of the common man. It has affected trade and business. But business has to go on as usual with or without notes. So let us see what can we do for cashless payments –
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Don’t worry friends, I will accept all your Rs.500 and Rs.1000 notes without asking any question……. Rs.12 per Kg.
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- Do not panic or get worried. If you have not done anything wrong, you will not be in trouble. You need to collect all the Rs.500 and Rs.1000 notes in your house and deposit it in the bank. You have time till December 30, 2016 to deposit or exchange old notes. There will be some RBI designated branches to exchange notes till 31st March, 2017 also if you have the necessary documentation. So if you are an NRI or PIO, you have time to exchange your notes.
- You can withdraw money from the ATM or from the bank branch. Do go early to the ATM/ bank as there will be a queue. If there are no separate queues for the senior citizens or disabled, try to allow at least a few of them ahead of you in the queue. They will bless you!
- You can help your house helper, driver etc. to set up bank accounts. It will be their first step towards cashless payments and can sleep in peace at home without worrying about the money they have collected over so many years.
No Cash! Try to use debit cards, credit cards, RTGS, NEFT, UPI and e wallets and go cashless.
- You should put technology to good use and ensure that you do cashless payments. You can register for netbanking payments for utility bills. You can make insurance payments, SIPs etc. automated.
- You can use e wallets such as Paytm, Ola Money Freecharge etc. to complete your transactions. An e-wallet is a component of the digital payment method. You can transfer cash from your bank account into an e-wallet and use it to make payments. You set up an account with an e wallet using your mobile number and email address and add money into it using your netbanking account, credit card or debit card. Once there is money in the wallet, use it like a regular wallet to pay bills and booking tickets either online or offline as long as the retailer accepts such payment.
- IMPS stands for Immediate Payment Service wherein you can transfer funds to another bank account from yours instantaneously provided both accounts are registered for IMPS. Do note that banks levy a charge from Rs.5- Rs.15 for this service. If you want to send money at 12 am, this is a good option.
- Real Time Gross Settlement (RTGS) and National Electronic Fund Transfer (NEFT) are mechanisms where money is transferred from one bank account to another in batches. There are some restrictions which do not make these 24×7 operations. RTGS and NEFT can be used for big amounts.
- UPI is another payment mechanism which allows funds transfer between 2 bank accounts using smartphones. It can be done between 2 persons or 2 entities or a person and entity. About 29 banks have registered for this facility. It is easy to register for it and pretty simple and convenient to use.
It is a little difficult these days to deal in cash. Therefore we have highlighted different forms of cashless mechanisms that you can use to your advantage and hopefully have seamless transactions.
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