Impact of Cashless Transaction on Indian Economy

Abstract

Cash transactions have given way to cashless transactions in the contemporary world. This article looks at how India's economic growth and steady shift to a cashless society are affected by the country's adoption of a cashless payment policy. With limited cash on hand and no end in sight to the crisis, the majority of people are hurrying towards cashless transactions. Accountability, scalability, and transparency are all improved by digital transactions. There is no doubting that digitalization is taking place quickly and that it affects practically every aspect of our life. Whether it is paying bills, filing taxes, banking, grocery shopping, schooling, filing taxes, or any other legal documentation.

Even money has gone digital; instead of carrying around physical currency, an increasing number of people choose to use digital cash payment methods. Both the nation and the economy would benefit from less reliance on cash and more inclination toward these alternative payment methods. The announcement of demonetization on November 8, 2016, strengthened the central government's ambition to move India toward a cashless economy. According to respondents' responses, it will lower the cost of producing cash, lower the risk of stolen or counterfeit money, fight terrorism, and promote our nation's economic progress. Cyber fraud, a high prevalence of illiteracy, people's attitudes, and a lack of efficiency and transparency in digital payment systems are major obstacles that could prevent the legislation from being put into effect.

Additionally, the analysis in this article will look at the cashless economy and see if it helps drive India's economic development. This essay focuses on the advantages, opportunities, and security risks associated with cashless transactions. It discovers that being cashless has a number of advantages, including convenience, simple financial transactions, increased availability of discounts, savings on both money and time, etc. Cashless transactions are conducted via various mechanisms. Internet and mobile banking, prepaid cards, e-wallets, mobile wallets, credit and debit cards, and other services have all been made widely available by technology. At the same time, the electronic payments system is expanding quickly. It is anticipated that its influence would be felt when payment systems in a variety of industries, including business, education, and the economy, are modernized. This paper will talk about. Indian economy's response to cashless transactions.