1Associate Professor, MITM, Ghaziabad
2Dean, Faculty of Management, Bhimtal Campus, Kumaon University, Nainital
Online published on 15 February, 2019.
The Indian economy is moving towards cashless economy after the demonetization of Indian currency notes on November 8, 2016. The initial awe and confusion has given way to a whole lot of concerns debating the benefits and drawbacks of moving towards a digital market place. The government has come up with a bouquet of discounts and freebies on digital transactions to incentivize the move towards a cashless economy. However the way seems to be difficult as India has a low internet penetration of 34.8% (2016) according to Internet Live Stats and only 26.3% of all mobile users have a smartphone (2015) as per Statista figures.
The ease of conducting financial transactions is probably the biggest motivator to go digital. It is safer and easier to transact online while travelling, in case of medical and other emergencies, during peak office hours and busy schedules. But since we are culturally not attuned to digital transactions, we are more prone to fall into phishing traps. Even well educated people are facing the higher incidence of online frauds and the theft of identify is the biggest fear. Another weak link is the inadequate grievance redressal mechanism to deal with such kinds of frauds.
The present paper is an attempt to study the process of going cashless with a detailed insight into the advantages and disadvantages of digital transactions. The cashless economy will bring about convenience and tangible benefits or will just add to the stress and additional charges are a matter of discussion. This paper tries to bring together all these different aspects and viewpoints to a common platform and analyse whether India is truly moving towards the Green economy.
