Cashless Economy: Is India really ready for this
India has to achieve so many milestones in near feature and has few core objectives in its agenda one of which is to create a sustainable cashless economy. India has the large percentage of middle-class people and with a mindset to spend cash whenever the need arises for their transactions. It is estimated the in India election transactions are only ~10% before demonetization. The POS penetration in India is one of the lowest in the world, India has just 670 POS per million people and Brazil had 3,725 terminals for million people and China and Russia, had approximately 4000 terminals for million people.
Today in India there are so many alternatives for e-wallets such as PayTM, Airtel Waller, PhonePay and many others. Apart from these wallets, traditional banks offer different payment options such as NEFT- National Electronic Funds Transfer, RTGS - Real Time Gross Settlement in India, IMPS - Immediate Payment Service and UPI - Unified Payments Interface. Normal Indians like to give cash for their day to day transactions and people even in the mall, and shopping complexes are using cash, eventhough they have credit/debit and payments card option.
We will list few advantages and disadvantages of Cashless economy
Advantages:
• The main advantage of going digital is no need to worry about notes and allow less tension of carrying big amounts of money. Any individual can digital transfers by using mobile wallets and electronic transfers for almost all kinds of transactions such as bill payments, fees payments, funds transfer, recharge, etc.
• The main agenda of supporting “Digital India” is to stop black money
• If all transactions are going through banks and wallets, it will be easy for the government to monitor the flow of money and can easily assess people, who are paying tax and who is excavation. In the longer run, this will increase the revenue to the Government.
Disadvantages
• In 2016 there was one of the biggest hacks of personal information in Indian banks, leaking credit and debit card information of millions of people. Individuals need to take care of sensitive data with maximum security. Cybercrimes will increase in the society if proper security measures are not taken by both banks and individuals.
• A Large group of people is living in rural areas and for them using mobile payments and internet banking is a big challenge. If we want to make India a truly digital we need to bring the solution to this problem as people living here are solely dependent on cash for their daily transactions.
Quite a valid point however I really doubt if the infrastructure is there for a cashless economy.
During demonetization people started accepting digital currency but soon once the cash came in flow it's back to the previous routine. Not just people we too have started avoiding for the fear as to how much we'll use digital one
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I think there's a long way to go for India to adopt Cashless Economy. I Think a big population still don't have mobile or internet access.
It is more idealistic then implementable. With a population in the billions and 80% living in rural areas, you can probably imagine the amount of people that are educated beyond an intermediate schools. The possibility of implementation seems extremely limited.
The advantages are definitely there, but I see it getting adopted marginally in the big cities within India first or the likes of Silicon Valley. If it doesn't go far from those cities either from acceptance or convenience, I doubt it'll become popularized period.
When the demonetisation happen it's becomes very big issues for some leading politicians . And being many arrest for changing the old into new currency. Haa 😁😁😁
There is a huge trade-off needing to be made between convenience and security. The more we put online, the less secure things become, overall. Hacking is a huge business which means that it will only continue to grow since we are seeing more of our lives digitized.
One advantage to being decentralized is that is makes the life of hackers a lot tougher. It is far easier to access one server or a set of servers within a company. That said, decentralized is a lot slower...another trade off.
Ultimately, countries will figure it out. The blockchain is definitely going to be at the core of a lot of this. Will India lead the way? We shall see.
India is actually not ready to go cashless and depend totally on electronic form of currency. While you may see people using PayTM and other e-wallet apps, one should not forget that more than 80% of the Indian population lives in villages where they have no idea about such amenities.
But no doubt, people living in cities and towns have gleefully accepted the idea of cashless currency which is easy to handle and use.
What I personally feel is that, India is a long time away from becoming majorly a cashless economy.
Well said. Still a lot has to be improved in terms of infra structure. Not everyone are comfortable even with ATM cards. Black money is still prevalent in certain section of society.
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