Cash doesn’t last long, so central bank needs to reprint again and again. Destroying old bank notes and printing new banks notes are a costly process. Moreover securing and carrying cash with volts and armored vehicles are another costly, cumbersome and time consuming process. At present only 2.6 percent salaries are disbursed through digital platforms. Only six percent of total transections are made through digital platforms. A recent calculation by Bangladesh Bank, the central bank of Bangladesh has shown that bank note printing costs more than 9,000 crore taka every year, which is almost 0.50 percent of GDP.
This calculation clearly shows the urgency of moving towards cashless society. Encouraging the use of debit and credit cards may help to improve from the situation. According to American credit rating agency, Moody’s Investors Service analysis, GDP of a developing country may increase by 0.02 percent with increasing the use of credit and debit card by only one percent.
