Question

how cashless india devepope

Answer 1

Digital India is the flagship programme of the Government of India. It was launched on 1st July 2015 by Prime Minister Narendra Modi, with a vision to transform India into a digitally empowered society and knowledge economy. “Faceless, Paperless, Cashless” is one of the professed roles of Digital India. Major progress towards this goal was made in late 2016, when the government took steps to demonetize the country. Now, even small retailers and shop owners are using cashless models like Paytm for transactions.
A cashless economy is one in which all transactions are made using credit/debit cards or digital devices (e.g., point-of-sales machines, digital wallets, etc.), and the circulation of liquid money or paper currency is minimal. In this economy, a third-party such as the government or a public/private sector bank possesses an individual’s money and can circulate that money whenever it is not needed by the individual.

Merits Of A Cashless Economy
Some of the merits of a cashless economy are listed below, going through these you will realise how significant this initiative is and how it will shape the Indian economy in a positive way.
It boost the economy because the cost of making and handling paper money is quite high.
It reduces the terrorist activities, as most of the terrorist activities are fueled by the black money in hard cash.
This aids the environment, as no trees are cut for printing of paper money.
Reduction in crime rates. Crimes with financial motives are rare in cashless economy. An instance of this has been seen in Delhi recently when the government pulled out high value notes.
It is the medicine for fake money problem. No cash simply means no fake cash.
Adherence to labour laws can be achieved, as now labours will be paid in their bank accounts.
Demerits Of A Cashless Economy
Every initiative has a lop side also, some of the demerits of cashless economy with respective to India are given below. In the later part of this article we will talk in detail about the challenges related to cyber security, individual’s financial data, and online banking fraud which a cashless economy can face.
No cash in hand. Always a dependency on your card or bank system connectivity.
Major part of Indian population is not educated about banking systems, specifically about the digital aspect of it. Hence they may resist to make online transactions.
Automation and online transactions will cut down large number of jobs.
India is dominated by small retailers and they don’t have enough resources to invest in electronic payments.
Increase in cyber crimes and online banking frauds.

Answer 2

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Cashless India is a move that has assumed significance in the backdrop of demonetisation of high value currency by the NDA government at the Centre. On November 8, 2016, Prime Minister Narendra Modi announced demonetisation of currency notes of Rs 500 and Rs 1000 and took the people by surprise. People standing in spiralling queues at ATMs and banks’ counters to exchange their old currency notes or withdraw cash became a familiar scene across the country.

However, the new cashless revolution ignited by this move has gradually started changing the mindset of people, who were earlier mostly dependent of currency notes only for doing transactions.

Benefits of cashless India

Cashless transaction does away with any hassle to carry cash.

It is in keeping with the worldwide trend. People need not carry any cash in various countries around the world as most of the transactions there are done electronically.

In digital transactions, you can view history of your expenses at one go which helps you to manage your budget easily.

Since cashless transactions are traceable, they invite payment of taxes, wherever applicable, thus ruling out use of black money.

As tax collections become easy through the cashless mode, it accelerates the pace of economic development, making it easier for the government to spend on education, health care, employment generation, infrastructure and the overall welfare of the people.

Increased tax collections lead to reduction and simplification of the tax structure.

Transfer of monetary benefits to the poor and the needy through bank transfer rules out their exploitation by the unscrupulous middle men.

Cashless transactions deal a body blow to counterfeit currency or distribution of black money through Hawala channels. It also cuts the supply of unaccounted money used in funding of criminal and terrorist activities.

It saves the government substantial costs in printing and circulation of currency notes.

Increased liquidity of money with the banks makes them lower their interest rates puts the huge amounts of cash deposited with them to some productive use.

Conclusion: A part of Digital India programme, the concept of cashless economy in India is centred around the vision of transforming the country into a society, which is digitally enabled and empowered by several modes of cashless transactions. Consequently, digital modes like credit/debit cards, mobile wallets, banks pre-paid cards, UPI, AEPS, USSD, Internet banking etc have gained in currency, leading to cashless India in near future.