Question in detail
Seeking ways to reduce cash usage in Indian economy is one of many aspects of demonetization of Rs 500 and Rs 1000 currency notes. Is that really an initiative to the cashless economy? Well, it may take years, or even decades to transform the entire system from cash to cashless. Though there is many a slip between the cup and the lip, demonetization could be taken, at least, as a positive move in that direction.
This is too early to affirm what would be the domino effects of demonetization of Rs 500 and Rs 1000 currency notes. Challenges in making a country like India, which houses more than 1.25 billion crore of population, cashless are apparently many and varied, but are no secret. Among them are; promoting finance literacy; developing a ubiquitous and state of-the-art digital infrastructure; facilitating e-banking, net banking and mobile banking; limiting the cash flow among local vendors, small retailers and customers; easing the entire banking system; and making the masses aware of the use of e-wallet, Paytm, Debit/Credit cards and online transactions.
Transactions on digital platform would result in a greater financial transparency. In particular, reduced cash usage would bring direct and indirect benefits the government and subsequently to the masses, thereby powering the whole financial infrastructure to put paid to counterfeit, black and unaccounted money. This, in the end, would make the Indian economy more potent. The bottlenecks involved in cashless transactions are overwhelming, but your individual linkage to the pool of masses who contribute or are willing to contribute their bit in this direction could be a proposed solution to stumbling blocks that might halt our progress.
What's wrong with making cashless transactions when you have an access to cashless instruments? It requires a collective effort to switch from a predominantly cash to cashless economy. Yes, it does as even individuals with access to cashless instruments like mobile applications, debit cards, credit cards, bank accounts, etc., don't use them much. Once they start making all transactions on digital platforms, they, on a fair note, would find it easier, more attractive and less time-consuming to link to the pool of the masses and entities that deal cashless.
Is demonetization of Rs 500 and Rs 1000 currency notes an initiative to cashless economy?