Is India ready for cashless Economy?

Digital India – A programme to transform India into digital is the most significant programme with a goal to convert India into a digitally empowered society and knowledge economy. “Paperless, Cashless, Faceless,” is one of the professed functions of Digital India. The vision of government of India to drive the nation towards a digital cashless economy was empowered with the declaration of demonetization on November 8, 2016.

What is a Cashless Economy?

The advanced and sophisticated system where no physical cash is in flow is a cashless system. Payments are made through bank electronic fund transfers, debit and credit cards, or virtual wallets.

Yes, India is ready for a cashless economy. The below-mentioned data clearly represent a move towards a cashless economy:

  • According to TRAI (Telecom Regulatory Authority of India), as on 30 Sept 2016, 82 out of 100 citizens owned a mobile phone. The development of the telecom ecosystem, with the decrease in data and call rates, along with the rates of smartphones, is pushing the shift of our economy to a cashless economy.
  • With major initiatives such as demonetization, BHIM, Direct Benefit Transfers, and many more. The purpose is to control corruption and streamline the economy.
  • Demonetization announcement in India has given an impetus to e-wallet services. According to the report “Securing the cashless, paperless economy”, by PwC India (Advisory, Tax & Regulatory Services in India) witnessed.
  • Approx. 1 million: Number of saved debit and credit cards within 2-3 days of demonetization announcement.
  • 100%: Instant growth in customer enrolment with well-known mobile wallets after the announcement of demonetization.
  • 50% increase in the download of wallets and a 30% increase in app usage backed by leading banks.



Conclusion

The revolution of Smartphone trends has led to the introduction of m-commerce, e-commerce, and several other services, counting applications-based cab aggregators, following digital payments for use of various services. The value-added services like bill payment facilities, cash back, rewards, and loyalty point use have resulted in the surge of such digital platforms. Such signs of progress have given rise to a modern cashless payment model.

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