Bolder Measures for a Cashless Economy

.....By swiping a debit card, a customer can pay for purchases at a shop directly from her bank account. Consumer convenience is obvious. Merchants do not have to manage cash (for those not evading taxes). But banks benefit in three different ways. Had the customer withdrawn cash a few days earlier from an ATM to spend at the shop, the bank would have incurred cost of ATM withdrawal, lost out on float in the bank account for the few days, and lost out on the fee it earns every time purchase is made on debit card. Government is pleased with debit card-based spending because electronic transactions are traceable for tax purposes. The regulator is happy because the efficiency of banking system goes up. So why is debit card penetration so low?.......

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