Cashless India (2024)

FAQs

Is India really ready to become cashless? ›

India has made significant strides towards a cashless economy, evident from the rapid increase in digital transactions and the government's push for digitisation. However, challenges such as inadequate digital infrastructure and limited digital literacy still exist, which need to be addressed for a complete transition.

CONCLUSION:

Greater application of digital payments will save a lot as it will help in bringing down the cost of cash in India. The development of a cashless economy would lead to transparency, curb corruption and lead to convenience for economic growth.

Similar rates have been recorded across other Scandinavian nations, while Hong Kong predicts cash will account for only 1.6% of point-of-sale (POS) transactions by 2024. But despite this global shift away from tangible currency, the US isn't likely to transition officially any time soon.

Be cashless,to make the tension less. Digital India is equal to the cashless India. Get freedom from the tension of money changes and go with the method of cashless.

China's cashless evolution is a remarkable story, as the country transitioned in less than two decades from a cash-first society to one with an 86% mobile payments penetration rate.

Sweden, the first European country to introduce banknotes in 1661, became the world's first cashless society on 24 March 2023. Finland and the UK are top–ranked to become cashless societies as well.

In a country with a huge informal economy, dependent on cash transactions, demonetization was a big political gamble, too. The immediate fallout was chaos, as the country scrambled to cope. There was a rush at banks and ATMs to exchange old notes and withdraw new currency.

The downsides of going cashless include less privacy, greater exposure to hacking, technological dependency, magnifying economic inequality, and more. Credit and debit cards, electronic payment apps, mobile payment services, and virtual currencies in use today could pave the way to a fully cashless society.

Cashless society: disadvantages

Elderly people may be less comfortable with tech and less able to make the switch from physical currency. Rural communities could also be left vulnerable, because of poor broadband and mobile connectivity. People with low income or debt tend to find cash easier to manage too.

This author says that's a false narrative. If it's been a long time since you pulled out actual dollars and coins to pay for something — here's a conversation for you. It might seem like cash is slowly becoming obsolete. But, Brett Scott says it's a false narrative that we're all pining for a cashless society.

What happens if the US goes to digital dollar? ›

Critics claim the digital dollar, or any form of digital currency, would have major privacy and security concerns and could give the government unprecedented access to Americans' financial data. Digital currencies may also be more susceptible to cyberattacks or hacking than traditional payment methods.

There is no reason to expect the U.S. dollar to collapse in the near future. 515 Such a change would require the entire world to change its adherence to an international monetary system that has the greenback at its center. As yet, no replacement is anywhere on the horizon.

There must be sessions promoting the use of cards, and tutorials to the illiterate about how to use the card and what precautions. Thus, making India cashless is a very strong concept, but it needs the support of proper infrastructure, tutoring as well as a step wise plan to succeed!

During the inauguration of the 'DigiDhan Mela' on 31stDecember 2016, Honorable Prime Minister, Shri Narendra Modi launched BHIM UPI App and urged people to make digital payments a habit to transform the country into a cashless economy. achieve “Faceless, Paperless, Cashless” sta- tus is the goal of Digital India.

Gujarat, Haryana , and Telangana emerged as the top 3 states with the highest growth in going cashless in the country. The app also tracked category-wise spends for the top 5 states and fuel expenditure emerged as the leading category for cashless transactions post-demonetisation.

Now we are able to see that the physical cash is gradually phased out. The future of cashless economy in India is immense, it holds several benefits such as Reducing the cost of printing and handling the cash, and by reducing this it helps in saving our natural resources.

Despite the rapid development of convenient, seamless digital payment methods, the 100 per cent cashless society remains a distant prospect.

The digital revolution is well underway in India, and the country is rapidly establishing itself as a major player in the digital economy, with the IT and digital industries at the forefront of enabling seamless digitalization.