Is India Ready to be a Cashless Economy?
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According to me, Indian is not at all ready to be a Cashless Economy and neither would be in the next 10-15 years. India requires much more time to be a Cashless Economy. However, firstly let us learn about what is Cashless Economy? A cashless economy is, in which all transactions are done digitally or by using credit/debit cards. The use of paper currency is minimum or about negligible. However, it is not an easy task for any country to achieve and currently, there is no country which can be said as a completely Cashless Economy.
As history, teaches us about how people used to follow ‘Barter System’ to purchase anything. After a long time, the use of coin was introduced instead of the exchange of goods. But this introduction of the coin has been a difficult process for people to follow. Instead of that, we came so far and following the same in which the role and faces of money have been changed multiple times. Likewise, shifting a Paper Currency based Economy into a Cashless Economy would not be an easy task in a country like India.
Making India a Cashless Economy won’t be an easy call as still about the 30% of India’s population is Illiterate and more than this percentage the population of the country doesn’t have access to good education and usage of Smart Phones, Internet, and other facilities. Rural India is completely out of this frame of technology advancement. As Urban India has adopted the digitalization with both hands but here also it includes a maximum of the young generation.
To be a Cashless Economy, most importantly India needs to educate its maximum population because it depends only when people get educated and could know what are the benefits of using Online method or Credit/Debit card method instead of using the paper money. After this, India needs good network connectivity and good speedy Internet facility as for this Internet speed is solely responsible to carry out the transactions.
After this, the third major point to be a Cashless Economy is to have a good and high-security service to carry out online transactions. If the security breaches then it would be responsible for the loss of data and money of many thousands and lakhs of users. In current time also, India has been facing many numbers of problems due to lack of data privacy laws and poor cybersecurity.
However, during the phase of Demonetization in Urban cities, many people have opted the facility of online transactions by using BHIM, UPI, and other online ways as well as credit/debit card transactions also. It gives a bright hope that India can be a Cashless Economy soon. But still, it requires to go through a long path to cover all the aspects to make India a Cashless Economy.