Indian Economy and Cashless Transactions: A Critical Study
Author : Dr. Kanhaiya Lal and Dr. Sanjay Parihar
Abstract :
In an unprecedented move by Prime Minister of India Narendra Modi, on 8 November, 2016. Demonetized the currency notes of Rs. 1,000 and Rs 500. According to the Government official statements, the aim of the demonetization process is to end widespread corruption, eliminate black money, encourage cashless transactions and make the informal sector more accountable. After the event of demonetization in India, many major changes are being seen in the Indian economy. Cashless transactions are also one of those changes. The Indian economy, which is heavily dependent on cash (more than 90% of the transactions are done on cash), caused large cash shortage in the economy. To bring the economy back on track, it was necessary for the government to promote a cashless economy, as there is a need for an alternative to cash to end the crisis arising out of cash crunch. But a big a part of the population in India is still deprived of the banking culture, in such a scenario, the future of cashless transactions in the Indian economy has been studied in this paper. In this paper an attempt has been made to outline the concept of cashless transactions, its various means as well as opportunities, future challenges and possibilities of cashless transactions in the Indian economy.
Keywords :
Demonetization, currency, government, informal sector, Indian economy, cashless transactions
