Traditionally, India has been a cash based economy. Government’s step to capture all black money, undeclared assets and recent Covid pandemic has necessitated contactless payments and boosted the cashless transactions. The real path for the cashless economy was laid in 2016 by the implementation of demonetisation.
Demonetisation forced people to go for cashless transactions as there is very less liquid cash available with the public and most of the black money has been confiscated by the government. There are many digital payment platforms that came into existence which helped people to migrate into cashless transactions.
Initially people were reluctant to go for cashless transactions due to lack of awareness, security reasons, limited availability of internet and mobile phones, especially in rural areas. Since the technological revolution during last 4-5 years, internet and mobile phones have reached every household. This made the people get used to cashless transaction.
Demonetisation has led public to open large number of bank accounts, which also helped in volume increase of cashless transactions. People are now used to it due to the ease, transparency and faster transactions. We can say that India is ready to become a cashless economy because of the change in mindset of people, evaluation of technology, internet facilities and government initiatives.
Now you can get handpicked stories from Telangana Today on Telegram everyday. Click the link to subscribe.