Pros and Cons of Digital Transactions

Digital trading is growing at an unprecedented pace, not just in this country, but around the world. India is one of the fastest digitizing countries in the world. In monthly radio show 'Mann Ki Baat', Prime Minister Narendra Modi raised the issue of cashless and digital transactions in the country. Statistics show that 20 billion digital transactions are recorded every day. The Prime Minister also urged the public to conduct a unique experiment called Cashless Day Out to foster digital transactions and build a dynamic digital economy. He also encouraged others to share his experiences with digital transactions as a source of inspiration. There are several benefits to going cashless and adopting digital payment and transaction methods:

1. Enabling Instant Payments: Electronic payment systems eliminate the need to go to the bank to make payments. Anyone can instantly execute trades using a smartphone or laptop from anywhere in the world. This has led to exponential improvements in time efficiency and has encouraged more people to switch to digital wallets and platforms.

2. Reduced risk of theft: Maintaining an electronic ledger that automatically updates all transactions in personal bank accounts eliminates the need to maintain a manual ledger. This allows you to keep track of your finances and reduce the chances of losing money due to theft or accidents. Digital payment systems eliminate the need to store and use physical cash.

3. Increased Transparency: Maintaining transparency is an important factor in any transaction between two parties. Digital payments and transactions increase transparency by recording every transaction made. This keeps the process clean and prevents future conflicts.

4. Lower processing costs: A flat subscription fee to your service provider is all you need to send and receive funds to your business account. Previously used methods were accompanied by much higher processing fees and transaction costs.

5. Helps Track Spending and Budget Discipline: There are various platforms that provide user-friendly interfaces for tracking an individual's spending habits in relation to their income. This allows you to tighten your budget and separate wants from needs.

These benefits also bring certain risks related to cybersecurity. The demand for enhanced cyber security networks and personal awareness is paramount when conducting electronic transactions. Every individual should be aware of the basic dos and don'ts that help secure their finances.

1. Using a different password for each account limits the damage if one account is hacked.

2. Passphrase and Password Confidentiality. It is very important that you do not share your account password with anyone. 

3. It is important to password protect your device and keep it secure when not in use.

4. Always be aware of public Wi-Fi networks available in hotels, malls and train stations.

5. Do not scan unknown QR codes. Also note that you do not need to enter a safety pin to receive funds. Many people have fallen victim to this scam.

From the steam engine to the development of the Internet, technological development has always had a downside. Knowing your strengths and weaknesses is he one of the easiest and most effective ways to take advantage of cyber threats and protect yourself.