CASHLESS INDIA: Are We Ready Yet?

A cashless society describes to the economic state of a place where financial transactions are not done by cash in terms of physical banknotes or coins instead electronic representation of money or its digital equivalent using cards or digital means is conducted between transacting parties. In a cashless economy, the transaction is done through the transfer of digital information using e-banking, credit cards, debit cards, POS machines, and digital wallets. Many banks and payment gateway companies are already using mobile networks as a channel for extending their transactions of services and goods. Nowadays even small retailers and almost every shop owners are using cashless models like Paytm for transactions.

Talking about our country, our economy is still cash-based. Majority of our rural population are unaware of digital money and its transactions. India is the 4th largest user of cash in the world. We have two different worlds within the same nation. One world is equipped with technology, sending spaceships into the outer world while the other is lacked with the basic needs and earning their livelihood pulling rickshaws. Such contradict existence within the same country might, however, making India stay behind digitally. Digital India programme is a flagship programme of the Government of India launched on 1 st July by Prime Minister Narendra Modi, with a vision to transform our country into a digitally empowered society. “Faceless, Paperless, Cashless” is one of the professed roles of Digital India. The Government has been trying to increase the reach of digital payments using apps and cards. The issue is with the large unbanked population. To increase the usage of digital modes, government and financial institutions need to come up with solutions that would take care of every sector of the nation. Mobile phones are now a part of our life. Every one of us has access to smartphones. The apps assist us in every aspect of our lives from navigation with help of maps to communication, traveling, shopping and many more. Payment gateways now use the network as a channel for transactions and as such we can somehow conclude that mobile phones take a part in implementing Cashless India. The cashless economy tends to be less corrupt and digital transactions are easily traceable which will reduce tax evasion, black money and will help in the better implementation of government policies.