CASHLESS ECONOMY IN

INDIA: PRESENT
SCENRIO
INTRODUCTION: India is a country where people
are living in an economy consist of monetary system
built by currency notes and coins .Circulation of the
currency notes is far higher than other large
economies. In India, too much of transactions are
made through cash. Less than 5% of total payments
happen through electronically. India made an
enthusiastic effort to move towards a cashless
transaction economy by minimizing the use of
corporal cash.
A Cashless economy is a situation in which all the
financial transactions are made by digital currencies
rather than physical currencies. Cashless India means
the cashless transaction.
By the 2010’s cash had become actively disfavored in
some kinds of transaction which would historically
have been very ordinary to pay with physical tender
and larger cash amounts where in some situations
treated with suspicion, due to its versatility and ease
of use in money laundering and financing of terrorism
and actively prohibited by some suppliers and
retailers, to the point of coining the expression of a
“war on cash”.
“WE WANT TO HAVE ONE MISSION AND TARGET:
TAKE THE NATION FORWARDDIGITALLY AND
ECONOMICALLY” -SHRI NARENDRA MODI.
Prime minister, Mr. Narendra Modi launched the
Programme “Digital India” on 8th November, 2016
with a version to transform India into a digitally
empowered nation and creating a cashless, paperless
economy. The basic requirement for making the
Cashless transaction is to have a smart phone with
network connection. Prime Minister Narendra Modi
asked the people to consider mobile phone as a wallet
and bank.
As per the current status of India, only 7% or 8% of all
the payments are taking place electronically.
NarendraModi’s government scrapped currency notes
of INR 500 and INR 1000 denominations, which is seen
as an unprecedented measure, through a giant leap
towards curbing corruption and forged currency.
When the transaction in an economy are not heavily
based on the money notes, coins or any other physical
form of money but are aided by the use of credit
cards,debit cards and prepaid payment instruments,
such as economy is called cashless economy.

The cashless economy in india has been

amplified with the indian government’s initiative of
digital india. This is a flagship programme with a vision
to transform india into a digitally empowered society
and knowledge economy.
MEANING: A cashless economy is an economy in
which digital transactions, such as mobile
payments,debit cards, credit cards, and online
banking, replace cash transaction. In a cashless
economy, indivisuals and businesses rely on digital
payments for transactions, and physical cash is
gradually phased out.
Cashless economy can be defined as a
situation in which the flow of cash with in an economy
is non-existent and all transaction must be through
electronics channels such as direct debit, credit cards,
debit cards, electronic clearing, and payment systems
such as immediate payment services(IMPS),National
electronics funds transfer(NEFT) and real-time gross
settlement(RTGS) in india.
A Cashless economy is an economy in
which all types of transactions are carried out through
digital means. It includes e-banking (mobile banking or
banking through computers), debit and credit cards,
card-swipe or point of sales(POS) machines and digital
wallets.
CASHLESS INDIAN ECONOMY?- A REALITY?
By Navroze Dastur, Managing Director, NCR
india: December 16, 2016 The low literacy rates india,
along with the lack of infrastructure like internet
access and power make things extremely difficult for
people to adopt e-transaction route. The financial
technology industry would be unwise to ignore the
rise of mobile transaction services, person-to-person
networks and the whole range of digital disruption in
the payments arena from the likes of Bitcoin,
ApplePay and PayPal that undoubtedly is putting
pressure on cash. Cash is like water a basic necessity
without which survival is a challenges. Nevertheless,
cash use doesn’t seem using cash..india has a large
volume of black money. The achievement or failure of
demonetization as a incomes to curb black money and
fake currency can only be resolute after a couple of
months but the fact that digital economy is good for
the country, is crushingly accepted as true. The
government planned to handle the after-effects of the
demonetization is much like an onion-many- layered
and occasionally tear-including.
However despite the dollar rupee’s value is going
down falling. From chocking the parallel economy to
pushing cashless transaction ,the move has created
ripples that will not die down anytime soon.

LITERATURE REVIEW
Many empirical studies have been conducted on the
project of “CASHLESS ECONOMY” in India and Abroad.
The major emphasis of research has been on various
issues like frauds, security, usage patterns, new
method of e-payment, etc.
From the review of literature, it was found that hardly
there was a study which examinethe perception of
both users and traders on the usage of cashless
transaction. Also many studies concentrated on
individual cards, for instance, debit or credit card and
neglected the joint effect and new innovative cards
like smart card, charge card and check card.
MANDEEP KAUR AND KAMALDEEP KAUR (2008),
DEVELOPMENT OF PLASTIC CARDS MARKET;past,
present and future scenario in Indian banks found that
plastic money in the form of cards has been actively
introduced by banks in India in 1990’s. But it was not
very popular among Indian consumer at the time of its
introduction. The change in demographic features of
consumers in terms of their income, marital status,
education level, etc. and up gradation of technology
and its awareness bought the relevant changes in
consumer preference.
BANSI PATEL AND URVI AMIN (2012) in their research
paper “plastic money: Road way towards cashless
society” discussed that now a days in any transaction
plastic money becomes inevitable part of the
transaction and with it life becomes more easy and
development to take better place and along with the
plastic money it becomes possible that control the
money laundry and effective utilization of financial
system would become possible with would also
helpful for tax legislation.
MR. PRADEEP H. TAWADE (2017), “FUTURE AND
SCOPE OFCASHLESSECONOMY IN INDIA.” This paper
helps in assessing the future trends and the impact of
going cashless in the Indian economic scenario. After
the study was conducted it was seen that the
Government of India should consider many more
steps in digitalizing India. And payment methods
should be made more secure and risk-free.
Dhanda and Arora (2017), Genesis of cashless
society: A study on growing acceptability towards
plastic money. This paper is aimed towards studying
the factors responsible for the rapid increase in
acceptability of plastic card in the recent years. After
the study was conducted it was seen that use of
plastic cards is a matter of great pride among
teenagers and is considered safe and free from any
frauds.

METHODOLOGY
For this study qualitative and quantitative both
research methods are used. Data for study was
collected from primary as well secondary sources.
 RESEARCH AIM
Points of focus under research aim:
• Cashless economy got popular after demonetization
where plastic money was widely used. The study is
aimed towards studying the level of awareness among
the citizens about cashless economy.

• The study also helps in determining the factors

which influence the people to switch from cash
towards cashless payments and what are the benefits
people avail by using other means of payments.

• The current study work is therefore aimed at filling

the gap in the current body of information on
changing rural people's perception of cash-to-cash-
free transaction. This element is similarly crucial when
one thinks about the country's cashless economy and
contributes to the Digital India Programme. The
following goals will be created to
fill this gap.
• Understanding on an individual level, the mindset of
the citizens of the nation regarding the shiftfrom cash
based to a more digital economy.

• RBI’S effort to encourage this new varieties of

payment and settlement facilities aims to achieve
thegoal of a ‘less cash’ society.
 RESEARCH OBJECTIVES
A. PRIMARY OBJECTIVES
• To study consumer awareness on cashless
transactions.
• To assess the customer trust and confidence in
cashless transactions.
• To study benefits of cashless economy.
• To analyse future trends of cashless transactions.
B. SECONDARY OBJECTIVES
• To understand the factors influencing the customer
moving towards cashless economy.
• To illustrate the steps taken by government to fulfill
the dream of digital India.
• To assess the preparedness of Indian Government
for implementing the cashless economy.
• To study the socio-economic impact of cashless
economy on the society.
DATA COLLECTION
The data were collected by using a structured
questionnaire, which contains demographic
characteristics of the respondents, benefits of cashless
economy and problems of cashless economy. The data
for this research is collected from both primary source
of data and secondary sources of data. The primary
data is the data that a researcher collects themselves
using various techniques like questionnaires,
interviews, observation, etc .For our research we have
used questionnaires as a mode of collection of data.
Various articles have been used as secondary data for
the research .Non-probability and convenience
sampling method was utilized in this study .Secondary
data was gathered from various sourcesviz: books,
reports, journals ,published papers.

ADVANTAGES OF CASHLESS ECONOMY IN INDIA:

 The main advantages of a cashless society in india
is that a record of all economics transactions
through electronics means makes it almost
impossible to sustain black economics or
underground markets that often prove damaging
to national economics.This reduces the system. It
is also much riskier to conduct criminal
transactions. An economy that is largely cash-
based facilities a rampant underground market
which abets criminal activities such as drug
trafficking human trafficking, terrorism, extortion
etc. Cashless transactions make it difficult to
launder money for such nefarious activities.
 Circulation of fake currency notes can be curbed.
 Digital transactions are convenient and improve
market efficiency.
 Convenience with technology, discounts in money,
tracking spends budget discipline, and lower risk
small gains are the benefits of cashless economy.
 It boost the economy because the cost of certain
and treatment paper money is quite high.
  It decrease the terrorist happenings, as most of
the extremist activities are fuelled by the black
money in hard cash.
 It will eliminate the risks associated with carrying
and transporting huge amounts of cash.
 Digital transactions bring in better transparency,
scalability and accountability.
 The cashless economy will reduce the production
of paper currency and coins. This will save a lot of
production cost in turn.
DISADVANTAGES OF CASHLESS ECONOMY IN
INDIA:

 Cyber crimes have increased a lot due to the

emergence of digital infrastructure in a cashless
 economy. That’s why establishing secured
interfaces is required in a cashless economy.
 Lack of knowledge and adequate infrastructure is
a big roadblock in setting cashless economy.
 Not all people have access to banking facilties
which has become a major challenges for the
cashless economy.
 The citizens are not aware of the financial and
digital instruments available to them. They don’t
know how to use them’ which again becomes a
major concern for the cashless economy.
 There is a lock of internet connectivity in rural
areas when compared to urban areas. There is a
big urban-rural divide that needs to be addressed
for the betterment of the cashless economy.
TYPES OF PAYMENTS IN A CASHLESS ECONOMY:
There are different types of payment modes in a
cashless economy, such as Mobile wallets, Net
banking.
 MOBILE WALLET- This is one of the most
common payments modes in india. Here a user
can store money on his/her mobile phone and pay
it via apps. The user can transfer money to the
mobile wallet using his/her credit or debit card.

 PLASTIC MONEY- This incudes prepaid, credit

and debit cards. Cards can be used for
withdrawing money from ATM’s for online
 payment , and swiping for payment at shops, fuel
pumps , and restaurants.

 NET BANKING- In a cashless economy, net

banking is one of the best ways for fund transfer
from one bank to another.Net banking can be
done through a mobile phone or computer.
MODES OF CASHLESS TRANSACTIONS:
1. CHEQUE: The cheque is one of the oldest
methods of cashless payment. It is a known
method to everyone. In this method, you issue a
 cheque for the specific amount to someone else.
The cheque gets deposited in the respective bank.
The bank processes a payment through a clearing
house.
The entire transactions done through cheques
gets recorded and there is a proof of payment.
However, there are instances where cheque
payments get dishonored due to signature
mismatch or insufficient fund. In order to avoid
such issue, we can use other cashless payment
options.
2.DEMAND DRAFT: Demand draft is another
rudimentary way of cashless transaction. It is
safest option to receive payment from anyone.
Demand draft (DD) never gets defaulted as it is
signed by the banker. The disadvantages of DD
and cheque is you need to visit a bank in order to
deposit cheque and demand draft. The clearance
of chaque or DD takes additional time.
3.ONLINE TRANSFER- NEFT or RTGS: The third
simplest method for the cashless transaction is
 online transfer using NEFT or RTGS. In order to do
online money transfer, you need internet banking
facility. Online transfer using NEFT or RTGS is
comparatively faster than cheque or DD. Online
transfer can be done from anywhere using
internet facility.
4.CREDIT CARD OR DEBIT CARD: Credit card or debit
card is another cashless payment method. The
usage of credit card and debit card was limited in
india. However usage of credit card and debit card
is increasing now because of demonetization. The
limitation of this payment method is an availability
of swipe card facility (PoS) at merchant end.
5.E-WALLETS: E-Wallet is next cashless payment
option. E-Wallet can be used to purchase products
starting from grocery to airline tickets. In order to
use E-Wallet customer and merchant, both
require a smart phone with active internet
connection. The most popular example or E-Wallet
is paybels.
 INTERNET BANKING
Internet banking , also known as online banking,
e-banking or virtual banking, is an electronic or
institution’s website. Internet banking , is an
electronic payment system, Different types of
sonline financial transactions are here,

1.National electronic funds transfer(NEFT): is

a nation-wide payment system faciliting one-
to-one funds transfer.
2.NEFT operates in hourly batches-there are
twelve settlements from 8 am to 7 pm on week
days(Monday through Friday) and from 8 am to 1
pm on Saturdays.
2.Real times gross settlement (RTGS): RTGS is
defined as the continues (real times) settlement
of funds transfers the RTGS system is primarily
meant for large value transactions.

The minimum amount to be remitted through

RTGS is 2 lakh.
3. ELECTRONIC CLEARING SYSTEM (ECS): ECS is
an alternative method for effecting payment
transactions in respect of the utility-bill-payments
such as:
Telephone bills, electricity bills, insurances
premier, card payments and loan repayments,
etc.
4.IMMEDIATE PAYMENT SERVICES (IMPS): IMPS
offers an instant, 24*7, interbank electronic fund
transfer services through mobile phones.
Internet banking allows users to transfer funds
through different modes like NEFT,RTGS,IMPS OR
UPI. Funds can be transferred between their own
accounts as well as to other accounts with in the
same bank or to accounts in different banks.
IS INDIA READY FOR A CASHLESS ECONOMY?
The difficulty in going digital is exemplified by the data
on debit card usage- over 85%( in volume) and 94%
( in value) of all debit card usage is at ATM’s for the
purpose of withdrawing cash.

The principal purpose for cards in an indian context is

thus a means to (over 600 millions) is a direct
consequence of the financial inclusion drive that led to
the opening of over 170 millions bank accounts.
Through the move put plastic money into the hands of
millions, effectively it has only shifted cash
withdrawals from banks to ATM’s , which was not
quite the intent.
INDIA IS TAKING A STEP ON THE ROAD TO CASHLESS
ECONOMY:
 The government has been working hard to
promote digital payment systems. So far, it seems
to be working. The government has reported a
400-1000% increase in digital transactions since
the demonetization.
 The national payments corporation of india,
together with the RBI, has launched UPI (“united
payment interface”).
 The “digital india intiative” has been set up to
provide internet access and comprehensive
mobile phone coverage across india, helping over
a billion people to get online and utilize digital
payment techniques.
 The RBI has been promoting a biometric
authentication system for banking.
  The Aadhar enabled payment system(AEPS) can
be used to open bank account using just an
indentification number and fingerprint.

ACHIEVING A CASHLESS ECONOMY ON RURAL

AREAS:
 Rural areas are home to two thirds of the
country’s population.
 Number of connected rural consumers is expected
to increase from 120 million in 2015 to almost 315
in 2020.
 Over 93% of people in rural india have not done
any digital transaction.
 The government has taken steps including
announcing zero balance accounts for people. But
growth of bank branches has been low.
STEPS SHOULD BE TAKEN TO FOCUS CASHLESS
ECONOMY ON RURAL AREAS:
 The Jan Dhan Aadhar mobile (JAM) can encourage
digital transactions culture. A large number of
government transfers are made through JAM
mode.
 A tax rebate (of say 1% to 2%) on payments made
by households as salary to unorganized sector can
boost cashless payments.
 The 5 A’s of promoting financial inclusion through
cashless payment instruments.
  Government should assure basic necessities in
rural areas and focus on developing infrastructure.
 Financial literacy is a must for bringing more and
more people to the digital platform.
 Linkage of all welfare activities with bank accounts
is a very strategic step.
 Targeted financial education programs can
improve financial skills and credit management,
and increase account ownership in rural india.

STEPS TAKEN BY RBI AND GOVERNMENT TO

DISCOURAGE THE USE OF CASH:
Government is also promoting mobile wallets.
Recently, the RBI had issued certain guidelines
that allow the users to increase their limit to Rs.
1,00,000 based on certain know your customer
verification.
Various incentives offered by government to
promote digital india on cashless india:
 On digital transactions up to rupees 2000,
services tax of 15% waived off.
 Digital purchase of fuel through credit cards,
mobile wallets or e-wallets, discount of 0.75%.
 Free accident insurance worth rupees 10 lakh
on account of online ticket buyers.
 On purchase of new LIC politics online via its
site, 8% discount is offered.
Government has introduced various technologies like
BHIM (Bharat interface for money) app to transact
between each other as well as with other merchants.
In addition to government or RBI, companies are also
participating in combating of cybercrimes. Microsoft
opened full scale cyber security center called cyber
security engagement center (CSEC) in india. This
centre monitors how viruses are spreading, from
where cyber attacks are originating and helping
customers to tap pool of security specialists.

A STEP ON THE ROAD TO CASHLESS TRANSACTIONS

TOWARDS FARMERS:
 The Indians farmers fertilizers cooperative
limited (IFFCO),the world’s largest fertilizer
cooperative, has initiated a pan india outreach
programme to educate farmers.
  Through live demonstrations and interactive
sessions.
 Separate stalls will be set up in each of the
Rural locations to conduct live demonstrations
and also answer the queries posed by farmers
regarding the same.
To expand digital payment infrastructure in
rural areas,
The Central government through NABARD will extend
financial support to eligible banks for development of
2 POS devices each in 1 lakh villages with population
of less than 10,000.
This will benefit farmers of one lakh village covering a
total population of nearby 75 crore
Who will have facility to transact cashlessly in their
villages for their agriculture needs.

HOW COME LOW-WAGE EARNERS ADAPT TO

CASHLESS DIGITAL SYSTEM:
 Open a Jan –Dhan account
 Get valid ID proof
 Use e-wallets to transact
  Save for emergencies
 Invest in small instruments
CASHLESS ECONOMY IN INDIA & THE
CHALLENGES AHEAD:Typically in india, a cashless
economy may take a bit longer to be adaptable.

The challenges with regard to the same have been

discussed below:
  A large part of the population does not have
access to debit cards and smartphones, which is
why they prefer to make transactions in cash.
 As per the survey and data collected, only 26% has
access to the internet and choose online payment
as an option for transactions.
 People are not entirely aware and educated about
the cashless methods of payment.
 The maximum population uses debit cards to
withdraw money rather than paying directly
through it.
 Making the people aware of the privacy and
security under cashless transactions is another
challenges for the government. As the cashless
economy in india is also taking time to recover as
people do not trust the privacy terms of the online
portals, platforms and applications.

CURRENT POSITION OF CASHLESS ECONOMY:

 The cash centric informal sectors like agriculture,
real estate, etc., have been affected by
demonetization. However, the experts says that
it’s a short term scenario and this move will give
positive long term consequenses.
 To bring the economy on track again, government
is promoting cashless economy because scrapping
of cash needs an alternative to cash.
 India’s black money has been estimated by the
world bank in 2010 to be worth about one fifth of
the GDP. In a country where 90% transactions are
carried out on cash basis it was a revolutionary
move to transforms from cash to cashless
transactions.
 Under this scheme, 250 million bank accounts
have been opened in two years. As per RBI reports
bank branches increased by 5% per year but
ATM’s , debit cards and card swiping machines
have doubled in the four years and online
 transactions have grown 20 times in six years to
2016.
 All these data shows a gradual shift towards
cashless economy. Demonetization has sped up
this transition.
CASHLESS ECONOMY IN INDIA:PRESENT
SCENARIO,INDIA SCENARIO
 Government withdrawn surcharges, services
charges on cards and digital payment.
 Government promoted mobile banking and
wallets that allows users to instantly send money,
pay bills, recharge mobile, book movie tickets,
send physical and e-gifts both online and offline.
 Recently, the RBI had issued certain guide lines
that allow the users to increase their limits to Rs.
1,00,000 based on a certain KYC verification.
PRESENT SCENARIO:
 Challenges for india in going cashless
 High cash dependency
 Lack of digital infrastructure
 Skepticism in merchants
 High merchants discount rate
 Financial inclusion
 Digital and financial literacy
 Cyber security
 Changing habits and attitude
 Urban rural divide
 Taxation and transparency of accounts
business gone failed
INDIA SCENARIO:
 Indian economy is primarily to be driven by
the use of cash and less than 5% of all
payments happen electronically. This is largely
due to the lack of access to the formal
banking system for a large part of the
population and as well as cash being the only
means available for many. Large and small
 transactions continue to be carried out via
cash. Even those who can use electronic
payments ,use cash.
 Indians traditionally prefer to spend and save
in cash and a vast majority of the more than
1.2 billion populations doesn’t even have a
bank account.
 Indian economy is primarily driven by the
informal sector and it relies heavily on cash
based transactions.
 A report by google india and boston
consulting group showed that in 2015 around
75% of transactions in india were cash-based
while in developed countries like USA ,japan,
France ,Germany etc. it was just around 20-
25%.
 RBI estimates for july 2016 show that banks
has issued around 697.2 million debit cards
and 25.9 million credit cards to customers
 after deducting withdrawn or cancelled cards.
However ,cards on its own cannot turn the
economy into a cashless one. It is important
to note that the number of cards in operation
is not equal to the number of individuals
holding those cards. It basically means that
many customers hold multiple accounts and
cards.
 The difficulty in going digital is exemplified by
the data on debit card usage –over 85% (in
volume) and 94% (in value) of all debit card
usage is at ATM’s for the purpose of
withdrawing cash. The principal purpose for
cards in an indian context is thus a means to
withdrawn cash.
FUTURE PROSPECTS OF CASHLESS PAYMENT IN
INDIA:
Smooth, simple and secure payment processes will
help to bring about behavioural changes and faster
adoption of digital payments and banking among un-
banked segments. When new players enter the
market, each with a slightly different take on the
market and with differing business models, the
increased competition will help the environment and
offer more option for consumers to choose from. A
larger pie with more players is definitely good for the
changing dynamics of the payments industry, which is
still nascent in india.
Indian consumption is still dominated by cash, with
cards contributing only 5 percent of the personal
consumption expenditure. In developed countries, 30-
50 percent of spends happen cards. So there is huge
opportunity.
The rapid growth of smartphones, Internet
penetration and e-commerce is complementing these;
card payment volumes have been growing in excess of
25% y-o-y. we expect this trend to continue, aided by
the continued increase in debit card. Activation and
usage; debit card transactions have been growing at
31% each year.
The credit card industry in india sees greater
acceptance among consumers this year. According to
worldline india card payment report 2014-15, the
credit card base grew at 9.8% in the past year.
Worldline india is a leader in the payment and
transactions services in the country. Alternative
methods like mobile wallet and prepaid cash
accounted for 3% of digital transactions. This industry
has been growing steadily over the past few years.
Cards transactions, both by debit cards, are on an
upward trajectory. There are interesting dynamics at
play in the indian payments industry.
SWOT ANALYSIS OF CASHLESS ECONOMY:
The full form of swot is strength weakness
opportunities threats.
STRENGTHS OF INDIA GOING CASHLESS:
A.PLANNED STRATEGY
Connecting the dots together, first SIT on black
money, then JAN DHAN scheme targeting financial
inculusion followed by track on foreign accounts and
money hoarders, then the income declaration scheme,
opportunity to people to declare their wealth, and
finally a blow by demonetizing the economy.
B.FINANCIAL INCLUSION
Under the JAM(JAN DHAN, AADHAR, MOBILE) trinity,
government is focusing of PRADHAN MANTRI JAN
DHAN YOJNA there was surprisingly huge rise in the
opening of bank accounts by the people around the
country. Bank accounts is one of the basic
requirement for any nation going cashless. India saw a
rise in number of bank correspondents and bank
branches in the non reachable areas also. Thus this
act as strength for the economy to go cashless.
C.MEASURES BY GOVERNMENT:
  Launch of BHIM app for smart phone users phone
users based on unified payments interface has
created easy and quick payments system for the
digital-haves.
 Launch of aadhaar Merchant pay has targated
those not having access to mobile phones thus
can make payment through aadhaar linked bank
accounts.
 DIRECT BENEFIT TRANSFER has also helped the
people in achieving digital transaction awareness.
WEAKNESS BEING FACED BY INDIA:
 CASH AS KING: The currency in circulation in
indiais far higher that other nations around the
world. The ratio of cash to GDP ratio is around
12% which indicates large usage of cash in
transactions. Cash is one of the biggest
dominating factor of the indian economy.
 ELECTRICITY: To go cashless the entire india
needs to have an access of electricity. The hassle
free and smooth functioning of cashless economy
 needs supply of 24*7 electricity, but india is still
facing huge load shading in has yet not achieved
100% electrification in rural areas.
 LACK OF INFRASTRUCTRE: Going cashless
involves needs for card swipe machines at the
POS terminals. Either reailers are not able to
affroad the facility or the banks do not have the
facility of providing such machines which disables
the card payment mode adoption.
 SMART PHONE MARKET STILL UNTAPPED: The
rising concept of e-wallets and making payment
online is only feasible through the smart phones,
but indian population mostly middle income
group or rural population lacks the affordability of
smart phones due to shortage of funds and e-
illiteracy even though smart phones are easily
available.
OPPORTUNITIES FOR INDIAN ADOPTING CASHLESS
CONCEPT:
 CURBING BLACK MONEY: Since cash economy
carries with it parallel economy run by black
money holders, with india going cashless can put
an end to this parallel run economy and
demonetization is one such step for india to
attack the black money.
 TAX COLLECTION: With digitization and adoption
of cashless base the entire money will be
operated through bank accounts thus TAX
EVASION and TAX AVOIDANCE would not be seen
creating good tax revenue base for the
government.
 REDUCTION IN REAL ESTATE: The most affected
sector with cash transaction is real estate, so
going cashless will make all real estate
transactions white in turn bringing down the
inflated prices due to black money.
 SAVINGS ON HUGE EXPENDITURE: RBI spends
around billions of rupees on the activity of
currency issuance and management, thus this
 huge amount of expenditure can be cut off one
india goes cashless.
 IMPACT ON GDP: Cashless status of the country
will not only lay down the growth prospect for
economy but also it will boost the GDP of the
country to higher levels.
 BALANCE: Less cash economy will act as a strong
balance between a check on malpractices and
also financial operations.
THREATS IN GOIONG CASHLESS:
 SECURITY: The major and biggest threat economy
faces cashless in the threats of security of
transactions:
1. Threat of loss of data base.
2. Threat to the money in e-wallets.
3. Threat of data encryption.
4. Threat of malwares, viruses to software.
5. Threat of cyber crimes.
 PERCEPTION OF CUSTOMERS: People at a large
scale perceives cash to be the most convenient
 and fastest way of transacting, thus adopting the
digital mode can face resistance from the society.
 EAARING FAITH AND TRUST: Country like india
which is still in its developing phase faces every
day new ups and downs and thus earings trust
and faith of people to adopt the cashless
economy is a big hurdle in its growth.

MEASURES TO BE TAKEN FOR DEVELOPING CASHLESS

INDIA:

Basic cyber hygiene (Better access to control

techniques with strong authentication measures
should be implemented by mobile e-wallets
companies.)
 Bank accounts
 Abolishment of government fees
 Tax rebates for consumers and for merchants
who adopt electronic payment.
  Making Electronic payment infrastructure
completely safe and secure.
 The Reserve Bank of india too will have to come
to terms with a few issues.

CONCLUSION
Cashless Economy is a way to endorse
cashless dealings among citizens, which is actually a
good idea for the country. But the question is whether
india is ready for it or how feasible it would be for the
government to opportunity india into a cashless
economy by 2020. Today there has been a major
change in the mindest of people towards digital
transactions through digital media. People have come
to know that digital media is also safe, easy,
convenient and transparent and there is no scope for
black money or fake currency in cash in india.
A cashless economy is secure, it is clean.
We have a leadership role to play in taking india
towards an increasingly “digital economy”. Thus , as
citizens and youths of india it is in our hands to
promote this magnificent india encouraged by our PM
Mr. Narendra modi who has a bright vision towards
the upcoming of future india. Big success and it will
help to attain vision of “DIGITAL INDIA”.

“Coming together is a beginning ; keeping

together is progress; Working together is
success”