Our economy is mixed economy and till date people are using the cash based transactions. The demonetization drive under taken by Our Prime Minister Narendra Modi government on Nov 8 will have far reaching consequences from the year 2017 onwards. Many nations in the western world are using the plastic money. India will steadily venture into the cashless world from next year onwards. However, it is not going to be an easy task, as most of Indians live in villages.
Effects Of Being Cashless In The Future:
Some of the impact of moving towards the cashless economy is very interesting:
Common man and people living in rural areas will feel the pain
Farmers and traders are still having INR 500 and INR 1000 rupee notes
Daily wage earners/labourers do not know to use the debit/credit card
Non banking establishments are offering the payment services and will take time to make pan India presence
People doing small transactions will be hit
Many traders/merchants feel that online payments are very complicated
Internet banking is fast creating waves in the market
Every citizen of India will definitely have a bank account
ATM are not present near each and every branch of the bank
Retail locations and POS terminals are not closer to carry out the online transactions.
Digital currency is the vital topic of heated debate over the coming years and Indian government is pushing towards online transactions and the card based transactions. Various initiatives has been done since past year and concept like e-payment, cashless payments, plastic transactions will be the new mantra for the growth and development of Indian economy.