Transforming India: Cash Economy to a Cashless Economy

Abstract

Cashless economy is an emerging yet challenging concept for our country. The concept gained importance since demonetization. Indian economy where 98% transactions are supposed to be done in cash is doing efforts in transforming itself into a cashless economy. It means an economy where all the transactions are done using cards or digital means and the circulation of physical currency is minimal. We are now living in a world where internet has taken over every place. Where ever we go we carry our debit cards or credit cards. With the appliance of today’s technology, the whole idea of cashless economy can be understood. By making our country go cashless we can see our nation free of corruption and fake currency. In the beginning it can be difficult for the common man to understand and follow. Spreading a positive word about cashless economy would help everyone to understand the concept. Though this scheme has disadvantages like lack of knowledge about online transactions, inadequate internet connections and so on. But by creating awareness on this scheme and imparting education on online transactions, we can soon become a cashless economy. The purpose of this paper is to create awareness about advantages and disadvantages of cashless economy. The steps taken by our government to promote digital payments among people and government itself are discussed in the paper. Various types of discounts are provided by government to promote digital payments. The paper also highlights the challenges like low literacy rate, cyber crime, digital hacking, less banking infrastructure, lack of digital awareness etc. which should be taken care of. Various steps taken by different states are discussed in the paper. Views of various personalities about cashless India are presented in the paper. Thus this paper highlights the various advantages, problems and challenges faced by India for transforming into cashless India. The specific problems faced by citizens of our country are presented in the paper. This descriptive study attempts to understand, analyze and interpret the problem and challenges of the cashless economy in India. To take remedial steps the study demands a social change by teaching the citizens about the benefits of cashless economy. An innovative plan ‘JAM’ can be a good step for promoting cashless transactions in India.