How to Handle Money in a Digital Economy

Going cashless is easier than ever – arm yourself with a good mobile banking app to get started.

The post-demonetisation phase since November 2016 has put the fear of handling cash in many a person’s mind. The Government has been urging citizens to adopt a cashless way of life, and this is sage advice. Going cashless is not just necessary, it is also quite simple to do.

Consider these tips to handle your money in a digital economy:

• Check your bank’s ATM withdrawal limits.
  Every bank has a pre-set limit for daily ATM cash withdrawals. These limits put curbs on how much cash you can get from the ATM. Find the banks that do not have ATM withdrawal limits at all. The best banks in India offer unlimited ATM cash withdrawals not just from their own ATMs, but also from other banks’ ATMs.
• Use your debit/credit cards everywhere.
  The best way to keep curbs on cash spending is to use a debit or credit card. Ask your bank if it offers the Visa debit card with payWave technology. If the merchant you are buying from has the payWave terminal installed at the checkout, you can simply wave your debit card in front of it to effect the payment. Many cab operators also accept card payments or UPI-app enabled payments using the smartphone.
• Your mobile banking app can help.
  Having an intuitive mobile banking app in an increasingly digital economy helps a lot. It can open a digital wallet for you in under 90 seconds. It can act as an expense tracker and help you manage your daily finances better. It can also help you open and operate fixed/recurring deposits, convert to a zero balance account and also get reward points and cashback offers for shopping via the app. And all this, without transacting with a single Rupee!
• Effect transfers digitally.
  Gone are the days when people sent huge wads of notes to those they needed to pay. All payments today happen electronically or via cheque. So whether you need to pay your staff or send a large amount of money to your parents based in another city, you can do so using your mobile banking app. You can even use the app to make payments to your daily service providers – domestic help, driver, valet parking, laundry service, grocer, etc.
• Convert to a zero balance account.
  Often, the best way to curb spending is by setting an expense limit. Another good way is to modify your savings account. You can convert your existing savings account to a zero balance account. This helps when you can use the zero balance account as your usual checking account. There are no maintenance charges on it and you get unlimited ATM cash withdrawals every month.