Is India ready to be a Cashless Economy?

card

In Favor :-

  • Long before demonetizing 500 & 1000 rupee notes, Indian government is trying to increase cashless transactions through Direct Benefit Transfer Scheme, Jan Dhan accounts etc.
  • From the moment higher denomination notes are demonetized, cashless transactions have increased at a rapid rate.
  • Though India has a huge proportion of digital illiteracy, using debit card does not require much digital literacy.
  • Many state governments are working hard to spread the awareness of digital transactions.
  • Indian Government rolled out incentives for going digital in financial transactions. It introduced daily and weekly lucky draws to encourage digital transactions.

Against :-

  • Till the moment 500 & 1000 rupee notes are demonetized, cash transactions constituted 85% among all the financial transactions in India.
  • Even after the demonetization move, cash transactions are still the king.
  • India has a huge population of digital illiterates. It’ll take a lot of time to transform everyone into digital literates.
  • No country is a fully cashless economy yet. India is still a developing country, and needs a lot time to transform itself into cashless economy.
  • Though no. of accounts have increased drastically after the demonetization move, once the scarcity of new notes is reduced, there is no guarantee that everyone will use that bank accounts.
  • With the recent hack of 32 lakh Rupay & Visa debit cards, there is a doubt in cyber security of Indian Banking. Before going for completely cashless economy, India needs to strengthen its cyber security first.

Facts :-

  • ‘Sweden’ is closest to achieving cashless society. Cash transactions in Sweden constitutes to only 3%.
  • M-Pesa created a revolution in ‘Kenya’. The usage of M-Pesa is so high that even salaries are credited through it. Cash transactions decreased drastically in Kenya.
  • South Korea gives tax incentives for cashless transactions, and could increase the share of non-cash transactions.

Conclusion :-

Though cashless transactions have increased these days, right now India cannot completely become a cashless economy considering its high proportion of digital illiteracy and cash transactions. But Indian Government is working towards increasing the share of cashless transactions, which is a good thing for any economy.

Afterwords :- What is your opinion on this topic? Express your thoughts in the comment section below.


Copyright @ Group Discussion Ideas.

You may also Like :-  All GD Topics with Answers

Subscribe to GD Ideas


Ask a GD Topic !!!

16 comments

  1. No yet India is not ready for a cashless economy because due to security problem even use of digital payment lead to the convenience but they are more risk for hacking. And one more think lack of technical knowledge. while the new generation people is closely related to their phone and gadgets but computer literacy among people in the over 50 age group is still low. There are many people who are not comfortable use of phone and computer.

  2. i don’t think that india is ready fully now because there are so many reasons about the cashless of our country . but still process has been going on right now very rapidly . and it’s very most important factor now that our government is concerning a lot about the cashless only one or two reason about the cashless ,in our country the level of education and proportion of education as well is not to much good that’s why it’s going on continuously in our country but now all these reasons are improving very rapidly and other in our country that is there are no too much internet users

  3. Absolutely right but there is some difficulties to india to move into a cashless economy. Why because after demonitization only the people who are knowing idea on this only those people doing this but you see rural areas till now no idea regarding cashless economy . Apart from this my opinion is govt are focused in rural areas and to conduct activities regarding this one then only it will be success.
    Thank you

  4. I think india is still not ready for cashless because in rular areas illetracy rate is high and many peoples do not know about digital payment.

  5. NO, in the present condition: Being, India is a developing economy & Labour surplus economy; time is required to make India as a cashless economy.

  6. Yes,india is not yet fully developed.it need so much amendments in it to become developed.So it is not ready for cashless.

  7. i don’t think India is ready for cashless economy.it is on the way of cashless economy. India needs two to three decades to become the cashless economy.here are the reason for not becoming India into complete cashless economy.right now many people of India are illiterate.there is no proper banking connectivity all over the India.there is also no proper connectivity of Internet . corruption rate in India also very high tremendous effort of the govt. also failing in this field.many labourer in India are dependent on cash for their daily expenses and they are illiterate or half educated .so to tackle all these things India need more time to be cashless.

  8. Still india is not Ready to go cashless but i have seen india is increasing day by day and improve but india will have to be more developement

  9. Till now India is NOT ready to be cashless…and here is a live example. Of it that we see in our homes !!! Nowadays everyone has a maid in their home whom we pay monthly …and I didn’t accept that she will come and say “NO CASH PLEASE.. I ACCEPT ONLY CARDS!!… And most important there is too much iiliteracy in India…. So from my opinion till now India is nt ready!!

    1. Now time has been changed….everyone talking about card payment or digital payment….even in rural India they are charging prepaid mobile by digitally.

  10. As far as my opinion is concerned, i fully agree that India is a developing country and is not developed yet……so its very difficult to make it as a fully cashless country…. but i think its a great move by our Pm to emphasis on ”CASHLESS INDIA”

  11. As India is large and diverge country illitracy can the point which could be a bad point for India to cashless economy

Join in the Group Discussion...

Your email address will not be published. Required fields are marked *