A Conceptual Study on Cash to Cashless Economy – Transforming India towards Digitization

Abstract

India is such a country where most of the payments are done in cash forms whether is done between businesses or it is done between business and the final customer. To become a developed country it is required to transform towards the cashless economy. This conceptual study analyzes the movement of big cash economy towards the cashless economy. This paper also analyze the challenges that are faced by such a large economy and also the opportunities created by this transformation. Its an ardent effort to move towards a cashless transaction economy by minimising the use of physical cash. The leading advantage of building a cashless economy is elimination of black money. Digitalisation of transactions is the best way to move towards cashless economy. Such a cashless economy is realisable by promoting electronic money instruments, developing financial infrastructure and spreading digital transaction habits among people. RBI’s Payment and Settlement Vision document 2018 gives objectives and guidelines towards cashless economy. It’s a big move towards the motive to be Developed country.