Digital Transactions in India: Post Demonetisation Scenario

Money one of the greatest inventions of human beings has passed through various phases. Invention of money has changed the mode of payment over the years and lots of transformation took place in modes of payment. Payments are now made through digital means as well. This has brought markets to our doorstep and saved us from making extra effort and spending our valuable time in moving around hunting for products and looking for the needed services.

An economy where most of transactions are settled through digital means of transferring funds from one person to another person, such as debit and credit cards mobile wallet etc is known as digital economy. The primary objective of digital economy is to keep minimum physical currency in circulation. In order to achieve this objective and to create an economy that is participative, transparent and responsive the Indian Prime Minister launched the Digital India Programme. The programme is good to cater the needs of all the sectors of the economy and its target is to accommodate rural India which is deprived of broadband connectivity. The Digital India Campaign is launched to provide bundle of government services to the dwellers electronically by refining online infrastructure and speeding up the internet connectivity. Adoptions of digital payment system will not only ease the widespread cash crunch faced post demonetization but benefits are innumerable. Conducting transactions through digital means is quite convenient. No need to carry huge amount of cash with a risk of being snatched away or robbed neither there is any hassle of waiting in long ATM queue. Also there is no compulsion of transacting during office hours. Additional advantage is that exact amount can be paid without being worried about not having change.

It is needless to mention that some perplex questions regarding safe digital transactions should be addressed in order to instil confidence of the users in the overall scheme of less cash economy. It is pertinent to make legal framework strong and quick, to resolve issues related to cyber-crime and fraud in the sphere of digital transactions. Other drawbacks and slackness in the present electronic payment system should be weed out within reasonable time.