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General

Cash is Not Bad. Do not Attack Cash as a Medium of Transaction

Cash.jpg

I wrote a long series of tweets about cash:

A few things to add:

  • Cash transactions are not useful for long distance transactions. It actually sucks.  (Not reliable, not exact and so on)
  • Larger transactions are a little more difficult with cash that with other mechanisms, because of the unwieldy nature of cash in larger quantities. However, it continues to be a useful payment mechanism for the illiterate, and with a Rs. 2,000 note even what is unwieldy is gone.
  • Cash has another big use: it is accepted everywhere. You can make interpersonal payments, business payments, small payments, donations – all of them with the same instrument.
  • The other payment systems are useful for specific purposes – NEFT and online transactions for business payments, some wallets or NEFT for small interpersonal payments when you have distance, cheques for advance payments and so on. Cash isn’t as convenient for some of these purposes.
  • Srinivas says:

    Interesting insights. However cash doesn’t lend itself for tracking which appears to be need of the hour. And I am afraid it remains so and can’t be eliminated.

  • Sanjeev B says:

    Imagine there’s no 500
    No 1000 too
    Nothing to fight or die for
    No tax evasion too
    Imagine all the people
    Living with digital rupees
    You may say I’m a dreamer
    But I’m not the only one
    I hope some day you’ll join us
    And the nation will be one

  • M says:

    the biggest disadv of cash compared to the other options is its bulkiness

  • T Srinagesh says:

    Despite being the most cash less Swedes still have 3% in cash to GDP. Japan and Hong Kong supposed to be electronically savvy economies have more cash than India as percentage of GDP. So you are right.