Cashless Economy - Opportunities and Challeng...

Cashless Economy - Opportunities and Challenges in India

Author Name : Pooja

Cash is a basic requirement of life, like water. Nonetheless, Cash's popularity does not appear to be waning, with about 85 percent of global payments still made in cash. One of the key factors is that nothing truly compares to the versatility of Notes and Coins. The Digital Era is something to celebrate, and new payment models will continue to emerge. A cashless society is an economic eco-system in which physical currency, such as paper bank notes and metal coins, is replaced by virtual, digital money, and cash circulation is replaced by purchases made with a variety of cards, mobile devices, and other internet-connected equipment. The opportunities and challenges of a cashless India are discussed in this article. The launch of the Cashless Economy is seen as a positive move forward. It is expected that its impact will be felt in the modernization of the payment system, as well as in reducing cash-related corruption, attracting more foreign investors to the country, lowering the cost of banking services, and curbing banking-related corruption. However, Indians must be aware of the major opportunities and challenges faced by various payment instruments, as well as the risks associated with Electronic Payment Instruments. This review paper defines the cashless economy and also discusses the opportunities and challenges of cashless economy in India. Keywords: Cashless Transactions, Electronic-payment, Demonetization, Economic policy.