A Study on Cashless Economy in India

A Study on Cashless Economy in India

Author Name : Khushi Lamba R

ABSTRACT

Cash is like water a basic necessity without which survival may be a challenge. In India, almost 98 percent of the economic transactions were cash based. This is too high a percentage. One of the most reasons is that there's nothing to really compete with the pliability of notes and coins. So now, Cash may no longer be King. Cashless transactions or Digital transactions bring in better transparency, scalability, and accountability. This paper focuses on the concept of a cashless economy, pros & cons, and to know the modes of cashless transactions. Digital India may be a leading program of the Government of India with a vision to convert India into a digitally authorized society and knowledge economy. “Faceless, Paperless, Cashless” is one of the declared rules of digital India. Cashless economies, because the name suggests, are people who run frequently on plastic or digital money. But Indians got to recognize the risks and benefits of various payment instruments, the risks related to electronic payment instruments are much more diverse and severe. Recently lakhs of open-end credit data were stolen by hackers; the power of Indian financial institutions to guard the electronic currency came into question also a crucial reason why people favour cash.

Keywords: Cashless economy, e-banking, card swipe, digital money, plastic money, transparency and digital transaction.