Main Article Content
Abstract
Cash based economies often pose serious challenges to any country in terms of tracking all
unaccountable transactions perpetrated by consumers, business entities or even the
Government. To tackle these issues, many developed countries have switched to cashless
economy. This paper seeks to examine the possibility of converting India from a cash-based
to a cashless economy. Due to constant level of technological infrastructure and policy
changes, there has been an increase in the number of modes of payments. Cashless economy
is the future of Indian economy where there will be no physical flow of cash. All the
payments will be made and received in the virtual world. Cashless economy got popular after
demonetization where plastic money was widely used. Electronic banking will be made
banking transaction to be easier by bringing services closer to its customers hence improving
banking industry performance. The financial safety over the digital payment channel is
important for pushing the cashless economy idea. A major obstacle for the quick adoption of
alternate mode of payment is mobile internet penetration, which is crucial because point of
sale terminal works over mobile internet connection, while banks have been charging money
on card-based transaction which is seen in hurdle. The study is aimed towards studying the
level of awareness among the citizens about cashless economy. The study recommends that
more people should start using digital payment methods which will serve a cashless economy
or less cash economy.