Study of cashless transactions in India

Cashless economy is an economy where maximum transactions are done without using the physical cash but through digital means. India holds one of the highest cash to gross domestic product ratios in the world and lubricating economic activity with paper costs Rs. 21000 crores annually to RBI (Tufts University, The Cost of Cash in India). In an attempt to curb out black money, money laundering and to have a sound economy, the government of India has embarked on the cashless economy. According to Government of India, the cashless transactions will maximize employment opportunities, avoid cash related robbery thereby reducing risk of carrying physical cash. Cashless transactions will also decrease cash related corruption and attract more foreign investors to the country. The main objective of the study is to present the current status of India in usage of digital currency and find the challenges which are associated with the cashless transactions in India.