Internet Citizens, Cashless Economy and Scope of Financial Inclusions

Abstract

A cashless economy is one in which all the transactions are performed using cards or by digital means. In India demonetization of currencies, digitalized (cashless) transactions are promoted in order to give a fillip to a cashless economy. Bank connectivity is a must for digital transactions. Strict enforcement of digital transactions will rapid the process to ensure financial inclusion in a time bound manner. Rush to the cashless economy or digital money system has its merits and certain demerits if you are not alert. One of the most important aspects is that it will pave the way for universal use of banking services. It will minimize the use of physical currency in circulation. Lower liquidity in cash supply may force the parallel economy to become limited in size. Real estate, fake currency, drug smuggling are going to be reduced considerably. The most important question is how to make a smooth transition so that financial inclusion is more efficient and in all segments of the economy. This paper analyses the penetration of the internet, internet and digital payment market, explore the possibility of going cashless with financial inclusion in India.

DOI: 10.5281/zenodo.3874041