“Cashless Economy boon for Indian Economy”

Dr. D. S. Borkar

Abstract


In India almost 98 per cent of the economic transactions were cash based. This is too high percentage. This has paved number of evils like black money which was running a parallel economy, corruption, counterfeit currency etc. In India the campaign for cashless economy was a fall out of demonetization of Rs.1000 and Rs.500 denomination notes and the government’s failure to replenish the same with the new notes. Therefore, in order to reduce the sufferings of the public the government pushed this campaign. The govt. also took several initiatives. As this was not a planned initiative there were several problems in its introduction. Even the industries which manufacture the Point of Sales machines were not prepared to meet the demand for it. The public adopted these machines and the other modes PTM, etc. to carry out their businesses. In the urban and metropolitan area the public response was good. In order to reduce the hardships of the rural people the Govt. of India supplied PoS machines in the villages. There are pros and cons of cashless economy. The cashless economy will bring transparency which will help the govt. to administer the taxation and increase its tax payer’s base. However, it will not be possible to totally reduce the cash transactions. The govt.’s approach should be to have a fair proportion of cash and cashless transactions to have smooth development of the economy. 


Keywords


Demonetization, financial inclusion, transparency, internet penetration, Computer awareness amongst masses

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References


www.google.co.in

http://www.thehindubusinessline.com/opinion/editorial/cashless-india-editorial/article9386837.ece


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