A cashless economy is one in which the majority of monetary transactions occur electronically through debit cards, credit cards, net banking, etc. And the physical cash circulation is minimum. The cashless economy has benefits of prevention of money laundering, deter shadow economy, increase the tax base and compliance and convenience for customers.
1. IS THE WORLD READY
FOR CASHLESS CURRENCY
SUBMITTED BY: HARSH KUMA
ROLL NUMBER: 2017126
SUBJECT: MPD
BRANCH: BBA (SIM)
SEMESTER: 1st
2. INTRODUCTION
A cashless economy is one in which majority of
monetary transactions occur electronically
through debit cards, credit cards, net banking
etc. And the physical cash circulation is
minimum. Cashless economy has benefits of
prevention of money laundering, deter shadow
economy, increase tax base and compliance and
convenience forcustomers.
3. INDIA IS ON ITS PATH TO REACH ITS GOAL OF A
SHADOW ECONOMY BUT IT NEEDS TO
OVERCOME CERTAIN BOTTLENECKS TO
ACHIEVE THE AIM:
1.Infrastructure: India needs to develop physical
infrastructure in the form of ATMs, broadband connectivity
and increase the penetration of smart phones in the rural
areas.
2.Digital literacy and behavioral change: Major chunk of
the Indian population is unable to utilize digital tools as they
lack the knowledge to utilize them. Behavioral inertia in
preferring cash transactions over digital transactions also
needs to be overcome.
4. 3. Security: In light of recent cyber security attacks on debit
cards and credit cards, india needs to develop a robust cyber
security firewall to counter such threats.
.
4.High unbanked population: Achunk of our population
is still unbanked. Many accounts opened under recent
Jan Dhan Yojana lack minimum balance and are inactive
5.Poor smart phone penetration: Only one-fifth Indians use
smart-phones, which is a pre-requisite for day-to-day
electronic payments &transfers.
5. BUT THEIR ARE SOME REASONS WHICH SA
YS
INDIA CAN GO CASHLESS TODAY LIKE
1.Corruption- Black money storage ,
counterfeit currencies in market has alerted
Indians.
2.Economic- Urbanization, increase in
phones, digitization and other electronic
devices.
6. 3. Political- Recent withdrawal of currencies,co-
operation from private, NGO's and other public
institutes etc.
4.Easeinflation and bring down prices of sectors like
real estate.
5.More companies/startups are coming up in the
finance sector to promote the cashless economy.
7. CONCLUSION
number of Cashless Transactions have
However
Increased Drastically. Specially youth is supporting
cashless economy. India does not seems ready to go
for fully cashless but partial cashless is also an option
to adopt in current situation.
Rural settlements inclusion in this process will make
the process faster. India could well use the example of
countries like Denmark and Sweden which have
managed to go completely cashless.
