Cash to Cashless Economy in India: Importance and Challenge

Addressing Challenges and Promoting Digital Payments in India

Abstract

Centre is making a big push for cashless economy by taking step like demonetization, rapid growth of e-payment start-ups in the country and launch of unified payment interface to facilitate cashless transaction. Despite these steps, many challenges are faced by Indian economy like cash driven economy, unbanked Indian, lack of awareness, lack of internet availability, illiteracy, insecurity so which could be tackled by government and RBI by taking necessary steps. India should learn from developing countries which have reduced dependence on cash like Kenya where mobile money has spread much faster than India. So overall government should improve security measures, invest in digital infrastructure, change attitude of Indians towards digital payments through digital literacy campaign.