Apropos "Moving closer to a cashless society" (March 14), despite huge investments for digitising the financial sector, cash transactions are predominant in a majority of dealings, particularly in the hinterland. Though the e-commerce and multi-payment systems are curtailing cash transactions, a lot needs to be done for a cashless economy.
A major chunk of bank account holders are using debit cards only for cash withdrawals from ATMs. Internet banking is still foreign to many. Banks are issuing credit cards very selectively owing to the fear of defaults. The ongoing financial inclusion has resulted in opening of innumerable bank accounts, yet a major chunk remains inoperative.
Read more from our special coverage on "LETTERS"
Irrespective of their nature, cash transactions are prone to generating black money. Cash transactions aren't cost-effective due to the cost involved in printing and circulating currency notes. A greater significance must be given to augment financial literacy and introduce user friendly financial products to encourage use of internet banking and other payment modes.
V S K Pillai, Changanacherry
Letters can be mailed, faxed or e-mailed to:
The Editor, Business Standard
Nehru House, 4 Bahadur Shah Zafar Marg
New Delhi 110 002
Fax: (011) 23720201
E-mail: letters@bsmail.in
All letters must have a postal address and telephone number
