Why Cashless India is Myth

With the banning of old 500 and 1000 notes, and by putting a cap on withdrawals from Banks, PM floated the idea of Cashless India. But there is a big question that is India really ready for a Cashless journey? While online transitions will allow the government to keep an eye on money and diminish the possibility of black money in economy.

The transactions of higher amounts may be done through carts, but the retailers like shopkeepers are not willing to use digital (soft) money.  By the social media platform, government is trying to educate the people on how to move on the way to Cashless India. But the problem is that, the group of people who are not actually tech-savvy, how will they access the things on twitter.

There some other hurdles in the path of India becoming a Cashless country:

  • The accessibility and cast of internet in India is still a main problem. There is no Wi-Fi in public place. Internet connectivity is needed even for e-wallets.  In direction to convince people to do cashless transactions, the cost of the internet should be lowered and free Wi-Fi should also be provided at public places.
  • In recent days during Oct’16, over 30 lakh debit cards were feared to have been exposed at ATMs. It was believed that the card and PIN details might have been leaked. Is the cyber security in place? While a card is cloned, How can people be assured that swiping cards at small shops and vendors will not be a risk to revealing our card details?
  • The addition charges on card payment & online transitions are levied by the vendors during the offer of online payment facility. But in going Cashless, shouldn’t this compulsory fee on online transactions be taken off?  

There are some other problems like Encouragement programs for Cashless economy by government, E-banks, internet blockage, infrastructure, affordable and reliable smart phones, non tech savvy still stand in the way of Cashless India.