Cashless Economy in India

 New technologies in today's world are rising more rapidly and one of such technology is the "Cashless economy"

India is majorly cash driven economy where people prefer to carry cash instead of cards however India is moving towards “less cash economy” -a phase of cultural-economic transition.This type of economic system is based on transactions made through credit card, debit card, digital wallets and modes. Limited amounts of cash transactions take place in cashless economies. In this type of economy, the electronic representation of money is encouraged over transactions by coins or physical notes.

Fueled by the unfortunate COVID-19 pandemic, India saw a massive shift towards digital transactions. This is in tune with the prime minister’s vision of a Digital India, and this is the opportune time to build a robust economy through safe, secure, and accessible digital payment solutions.Cashless economy is cost effective, growth friendly, business friendly, pro-financial inclusion, etc. Government is promoting it through BHIM app, AEPS, Digishala etc. According to Government of India the cashless policy will increase employment, reduce cash related robbery thereby reducing risk of carrying cash. Digital India’ got a big boost in the field of monetary transactions with the government’s demonetisation move four years ago. Since then, there has been a marked increase in tools and solutions available in the e-payments sectors. 

Cashless policy will also reduce cash related corruption and attract more foreign investors to the country. In many countries introduction of cashless economy can be seen as steps in the right direction. It is expected that its impact will be felt in modernization of payment system, Reduction in the cost of banking service, Reduction in high security and safety risk and also curb banking related corruption.