Can you become cashless?

Yesterday we went to buy vegetables from Vishnu, our local vendor. With limited cash in hand we were wondering how to pay him? We were surprised to see a board with paytm sign in front of the shop. After completing our shopping, I took out my Smartphone and made the payment through Paytm. The transaction was successful and the vendor got an SMS alert. It was so smooth and a big relief!!

If you want relief from the queues in front of the ATMs and Bank branches, it is not difficult. You can become less dependent on cash by making online payments. As may be observed below, if a family has a monthly expenses of Rs 50,000/-, they need not keep more than Rs 2,500/- of cash with them. A big relief from the long queues!!


Monthly Expenses Cash less options
Electricity/Water bills Net banking/Credit / Debit cards
Telephone/Mobile/Internet Net banking/Credit / Debit cards
Doctors Credit or Debit cards
Medicines shop Mobile wallet/UPI/ Credit/Debit cards
School fee Net banking/Credit / Debit cards
Grocery Mobile Wallets/UPI/Credit /Debit cards
Cooking gas Net banking/Credit / Debit cards
Vegetables Mobile wallets/UPI
Society maintenance charges Cheque/Internet Banking
Petrol Net banking or Credit or Debit cards
Personal care(Cosmetics) Mobile wallet/ UPI/Credit/Debit cards
Clothes Mobile wallet/ UPI/Credit/Debit cards
Restaurant/Movie/Malls Mobile wallet/UPI/ Credit/Debit cards
Railway/Flight tickets Net banking or Credit or Debit cards
Hotels booking Net banking or Credit or Debit cards
Travelling(Ola/Uber) Ola money/Paytm
Loan EMI ECS(Electronic clearing services) of Banks
Life  Insurance premium Net banking/Credit / Debit cards/ECS
Health Insurance  premium Net banking/Credit / Debit cards/ECS
Personal accident premium Net banking/Credit / Debit cards/ECS
Vehicle Insurance premium Net banking/Credit / Debit cards/ECS
Newspaper & Magazines Cash/Cheque
House Maid Cash/Cheque
Total of Online payments > 95% of monthly expenses
Total cash payments  < 5% of monthly expenses

More about options

  • Mobile wallets

This is a virtual wallet on your mobile in which you can store cash. You can use this wallet to make online purchases and pay bills. Various service providers have mobile apps, which you can download on your mobile. You can transfer the money into these wallets using net banking, Debit/Credit card. The popular wallets are Paytm, mobikwik, Banks promoted wallets e.g. SBI Buddy, ICICI Pockets, HDFC payzapp etc .There around 25 operational mobile wallets. If you have a KYC compliant wallet, you can transact Rs.1 lakh per month and for KYC non compliant wallet you can transact Rs20,000/- per month. It is more secure than debit and credit cards since you do not have to share the card details.

  • Plastic Money

Debit and Credit cards are the most used online plastic money. All most all the Banks have Debit cards. VISA, MasterCard etc is prominent credit cards. Rupay cards are promoted by NCPI and have been issued to Aadhar account holders. These can be used at POS (Point of Sales) at merchant establishments/shops.

  • Net Banking (Internet Banking)

This is online transfer of funds from one bank account to another bank account of the same bank or a different Bank. All the Banks have internet banking facility. RTGS and NEFT managed by RBI are very popular platforms for interbank transactions.

  • Unified Payments Interface (UPI)

UPI managed by NPCI and RBI   is a mobile app which allows you to pay directly to merchants. The account is identified by mobile number. The transactions are effected without disclosing any bank information. The app can be downloaded and account opened with   mobile no, Aadhar card and bank details. One can undertake 20 transactions up to a max limit of Rs1 lakh in 24 hrs.

Popular apps

  • Travelling – Ola, Uber
  • Groceries – Big Basket,Grofers, Nature’s basket
  • Mobile Recharge and Bill payments – Paytm, Mobikwik, Freecharge , PayUmoney
  • Ordering Food – Zomato, Foodpanda, Swiggy
  • Medication – Netmeds, Zigy
  • Household Services (Plumbing, Pest control & electrician) – UrbanClap, Help

Last modified on Saturday, 11 March 2017 06:00

Prakash Praharaj

Shri Prakash Praharaj has a passion for excellence. He has been awarded two gold medals for securing top positions both in Graduation and Post Graduation in Commerce. He is an MBA with specialization in Finance and marketing. He has been awarded Diploma in Treasury, Investment and Risk Management besides CAIIB from the Indian Institute of Bankers. He is a Certified Financial Planner from the Financial Planning standards Board, India (FPSB), affiliated to FPSB, Denver, USA and Certified Personal Financial Adviser from NISM. He is also a SEBI registered Investment Adviser vide Reg. no. INA 000000045 dated 2nd August 2013.His book "Your Every day guide to Personal Finance and Insurance" has been published by CNBC TV 18 in August 2015.


  • priyanka

    posted by priyanka

    Friday, 02 June 2017 04:56

    Excellent one!

  • Subhra Kiddy

    posted by Subhra Kiddy

    Thursday, 01 December 2016 07:01

    Very helpful

  • Ashwini Shirsat

    posted by Ashwini Shirsat

    Thursday, 01 December 2016 06:59

    thanks for making this information available... its very useful..

  • Rohit Jain

    posted by Rohit Jain

    Thursday, 01 December 2016 06:57

    tnx to make it simple to understand

  • Ramkrishna Padhi

    posted by Ramkrishna Padhi

    Thursday, 01 December 2016 06:54

    true n helpful points..tnx to share


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