Cashless Bangladesh Focus Writing/Essay

Cashless Bangladesh Focus Writing/Essay

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Cashless Society Meaning

A cashless society refers to a state or condition in which the use of physical cash, such as banknotes and coins, is minimized or eliminated in favor of electronic forms of payment, such as credit cards, debit cards, and digital wallets. In a cashless society, transactions are made digitally and recorded electronically, allowing for greater efficiency, security, and convenience. It also helps to reduce money laundering and other financial crimes.

Cashless Transactions:

Cashless is characterized by the exchange of funds by cheque, debit or credit card, or electronic methods rather than the use of cash. It's time to go cashless. The purpose of demonetization is not only to remove black money but also to encourage cashless payment. Instead of breaking your head by standing in the ATM queue, you should adopt a cashless method for the transaction. A cashless method is more transparent as every transaction can be traced easily as it leaves its footprints. Many smart people have adopted new cashless payment options. If you are wondering which cashless option, you should adopt here is the list of the 10 Best Cashless Payment options for you.

• A quick response or QR code-based universal payment system.
• Cheque.
• Demand Draft.
• Online Transfer- NEFT or RTGS.
• Credit Card or Debit Card.
• E-Wallets.
• Mobile Wallets.
• UPI Apps.
• Gift Card.
• Unstructured Supplementary Service Data.

Importance of Cashless Transaction:

Cashless transactions have one major benefit: they bring transparency and accountability to the monetary system. Digitizing monetary transactions helps banks recognize customers and track money flow. This helps to reduce financial fraud and crimes such as tax evasion and counterfeit money in the economy.

Today, smartphones in the economic range can provide quite decent access to the digital world as well. Further, factors such as ever-changing, growing demand by customers for innovation, and the government's initiatives to regulate and limit the flow of cash, are leading Bangladesh's path toward a cashless economy. Adding to this, dynamic growth in the number of customer service providers, across diverse channels such as manufacturing, and e-Commerce is also an important factor in increasing the adoption of a cashless economy.

A cashless economy is a relatively new concept in Bangladesh; it has emerged recently, and despite initial challenges, it has witnessed high acceptance. Let's look at the advantages that have helped people shift towards going cashless. In this way, Bangladesh will be Cashless Bangladesh.

• Cashless Economy - Digital Payments
• Paytm
• Freecharge
• Mobikwik
• No Cash!
• Go Digital

The journey of "Cashless Bangladesh, Smart Bangladesh" - a quick response or QR code-based universal payment system developed by the central bank has started with an initial engagement of 1,200 merchants, including street vendors in 18th January 2023.

A total of 10 banks, three mobile financial services - bKash, Mcash, Rocket - and three multinational payment service providers - Mastercard, Visa, and American Express or Amex - joined the system, according to central bank officials.

The banks are Dutch Bangla Bank, Mutual Trust Bank, AB Bank Bank, Eastern Bank, Islami Bank, United Commercial Bank, City Bank, Bank Asia, PUbali Bank, and One Bank.

To avail of the service, one needs to have an app of his bank, card, or mobile service provider. Changing money against big notes is a big problem for us. Many are used to dodge our wages saying that they have no small notes. Hopefully, the QR payment system will help us get rid of this situation.

The campaign is part of the idea to popularize an interoperable Bangla QR Code across the capital that will help clients pay their bills for goods and services through mobile banking applications, mobile financial services (MFS), and payment service providers (PSP).

Later, it will be replicated in other areas of the country in phases.

The central bank's campaign will promote cost-effective, secured, and cardless digital transactions in an economy that almost entirely relies on paper currencies.

Ten banks, three MFS providers, and three card-based PSPs are taking part in it. The central bank launched the low-cost digital payment mechanism, under which clients can pay for whatever they buy from small merchants by scanning the printed interoperable Bangla QR Code - available with the roadside vendors.

"It's very cheap and will help the banks to get daily transaction-related data of the vendors and can allow them to get formal credit based on that. So, it's a good opportunity for the small merchants."

Economic Impact of a Cashless Society in Bangladesh

The economic impact of a cashless society in Bangladesh would likely be positive overall, as it would increase financial inclusion and reduce the costs associated with cash transactions. However, there would also likely be some negative impacts, particularly for those who are not able to access digital payment methods or who rely on cash transactions for their livelihoods. It would require significant investment in infrastructure and education to ensure that all citizens are able to participate in a cashless economy. Additionally, there could be risks related to data privacy and security, which would need to be addressed to ensure that the transition to a cashless society is successful.

Moving towards a cashless society would also increase transparency and reduce opportunities for money laundering and tax evasion, which would have a positive impact on the overall economy. Additionally, a cashless society would allow for easier tracking of transactions, which would make it easier for the government to monitor and regulate the economy.

On the other hand, a significant portion of the population in Bangladesh still does not have access to banking services and digital payment methods. This could perpetuate the financial exclusion of these individuals and potentially widen the income gap. Furthermore, a cashless society could also have negative impacts on small businesses and informal sector workers who rely on cash transactions for their livelihoods.

To mitigate these negative impacts and ensure that a cashless society is successful in Bangladesh, it would be important to invest in financial education and access to digital payment methods for all citizens, as well as to provide support for small businesses and informal sector workers to transition to digital payment methods. Additionally, measures need to be taken to ensure data privacy and security, as well as to prevent cybercrime related to digital transactions.