A cashless economy is one where notes or physical currency is not in circulation. All the financial transactions are carried out through credit or debit cards, virtual wallets, NEFT, RTGS or other electronic fund transfers.
Our current Prime Minister, Shri Narendra Modi, took the whole world by surprise when he announced on 8 November 2016 that the currency notes of denominations Rs.1,000 and Rs.500 were no longer legal tender.
What was seen as a move towards checking the menace of black money in the country, soon paved the way for India’s push to becoming a cashless economy.
“Paperless, Cashless” is one of the goals of Digital India. Numerous benefits have been associated with transforming India into a cashless society. Some of the major advantages include:
- Brings transparency into the system.
- Helps to fight against corruption.
- Will increase the tax base.
- Reduces costs incurred on the minting of coins and printing paper notes.
- Cashless transactions are faster and secure.
- Lower transaction costs.
- A boost to the country’s Economic Growth.
- The biggest advantage of cashless India is in the promotion of Financial Inclusion of the people.
If implemented properly, a cashless India can really become a reality rather than just a distant dream. However, it remains to be seen if our country is actually ready to go cashless.