Years of Note Ban: Cash Still Being Used to Buy Land, Property, Household Items & Services: Survey

Seven years have passed since the implementation of demonetization in India, but the impact of this historic economic move still lingers. According to a recent survey, the use of cash for various transactions remains prevalent, even in the purchase of land, property, household items, and services. In this article, we will delve into the findings of the survey and discuss the implications of cash transactions in these sectors.

The Persistence of Cash Transactions

Despite the government's efforts to promote digital payments and reduce the circulation of black money, the survey highlights that cash is still being used extensively in various financial transactions. Land and property transactions, which involve substantial sums, continue to witness cash payments, potentially allowing for tax evasion and unaccounted wealth. This raises concerns about the effectiveness of demonetization in curbing illegal financial activities.

Cash in Household Item Purchases

The survey reveals that cash is also commonly used when purchasing household items. While electronic payment methods are increasingly popular, a significant portion of the population still prefers cash for these transactions. This trend not only poses challenges for tracking expenditures but also raises questions about the safety and accountability of such transactions.

Cash and Service Payments

The use of cash is not limited to tangible items alone. The survey findings indicate that cash is prevalent in service payments as well. Whether it's getting plumbing services, hiring domestic help, or other day-to-day services, cash transactions are still widely practiced. This presents a hurdle for tax compliance and prevents the government from accurately assessing the income generated from these services.

The Impact on the Economy

The continued reliance on cash transactions has a significant impact on the Indian economy. Cash transactions make it difficult to monitor financial activities and enforce tax compliance. This, in turn, can lead to a loss of revenue for the government and hinder economic development. To achieve a robust and transparent financial system, it is crucial to reduce the reliance on cash in all sectors, as highlighted by the survey's findings.

Government Initiatives

In response to the survey's findings, the government needs to take proactive measures to promote digital payments and reduce cash transactions. Strengthening the digital infrastructure, promoting awareness campaigns, and simplifying the digital payment process can encourage more people to transition away from cash transactions.

Conclusion  Years of Note Ban: Cash Still Being Used to Buy Land, Property, Household Items & Services: Survey

Seven years after the implementation of demonetization, the survey's findings suggest that cash is still widely used for various transactions, including the purchase of land, property, household items, and services. This persistence of cash transactions raises concerns about the effectiveness of demonetization in curbing illegal financial activities and its impact on the economy. To achieve a transparent and robust financial system, the government must continue its efforts to promote digital payments and reduce reliance on cash in all sectors.