Write about "Cashless economy system"
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1. Over population : India is world's second largest populated country. It is one of the bggest problem for India in most of the sectors and is also one of the biggest challenge in making India cashless. It is very difficult to provide facility to 1.25 billion people to perform electronic transaction and aware people about cashless economy system and its advantages. It will take too much time and cost.
2.Illiteracy : Another challenge in front of government to make India Cashless is illiteracy. Around 23% people in India are illiterate, it means they are not even capable of writing their own name so, we can imagine that how difficult it would be for them to understand and carry out E- transaction and use ATM, credit and debit card. Illiteracy rate is high in villages and backward areas due to which there is no meaning of conducting awareness program and campaigns in those areas. First we have to focus on education then we can think of cashless economy.
3.Inadequate Infrastructure : In India most of the population lives in rural areas and depends on agriculture in which people work on daily wages and it is cash driven sector. Number of Banks and ATM are very less or insufficient in rural areas so it is difficult for rural people to live life without cash. Most small and medium scale buisnessman find it difficult to use swap machine and e-transaction system because it add up to their buisness operating cost. Only 25-30 percent people in India have access to internet so it is difficult to use online banking and E-payment system.
4.Trading System : Small shopkeepers and Retailers perfer transactions in cash rather than cheque, e-banking. Upto 95% transaction in India are done through cash because nearby shopkeeperss and customers have mutual understandings so customer don't ask for bill and even shopkeeper does not give bill. It somewhere helps to generate black money. Existing trading system in India is a barrier in making India cashless.
2.Illiteracy : Another challenge in front of government to make India Cashless is illiteracy. Around 23% people in India are illiterate, it means they are not even capable of writing their own name so, we can imagine that how difficult it would be for them to understand and carry out E- transaction and use ATM, credit and debit card. Illiteracy rate is high in villages and backward areas due to which there is no meaning of conducting awareness program and campaigns in those areas. First we have to focus on education then we can think of cashless economy.
3.Inadequate Infrastructure : In India most of the population lives in rural areas and depends on agriculture in which people work on daily wages and it is cash driven sector. Number of Banks and ATM are very less or insufficient in rural areas so it is difficult for rural people to live life without cash. Most small and medium scale buisnessman find it difficult to use swap machine and e-transaction system because it add up to their buisness operating cost. Only 25-30 percent people in India have access to internet so it is difficult to use online banking and E-payment system.
4.Trading System : Small shopkeepers and Retailers perfer transactions in cash rather than cheque, e-banking. Upto 95% transaction in India are done through cash because nearby shopkeeperss and customers have mutual understandings so customer don't ask for bill and even shopkeeper does not give bill. It somewhere helps to generate black money. Existing trading system in India is a barrier in making India cashless.
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