Cashless Economy and Digitalization

Abstract

Cashless economy seems synonymous to Canada and Sweden as manifested in study of Forex Bonuses 2017. Cashless economy is an economic system where small amount of cash is used in transactions. Cashless economy is based on transactions made by credit cards, debit cards, wallets or digital modes.

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. It is important to curb shadow economy, corruption, terror -financing, human and drug trafficking, counterfeit-currency etc.

Cashless economy is cost effective, growth friendly, business friendly, pro-financial inclusion, etc. Government is promoting it through BHIM app, AEPS, Digishala etc. Cashless economy requires robust digitalization. It has various challenges-escaping attitudes of people, poor transaction security mechanism, insufficient infrastructure etc. it is boon to industries like UBER and OLA. Further analysis will be done on secondary data.

Keywords: Less cash society; Cashless Economy; Digital economy; Demonetization etc.