Abstract
Journey from demonetization to digitalization is very hard hitting but not impossible. Recent demonetization in India on November 8, 2016, created lot of panic in the economy but also paved the way to digitalization. Cash crunch and availability of e-sources of transactions compelled many people to use electronic modes of payment. Credit cards, debit cards/RuPay card, USSD/UPI, Internet banking, mobile wallets like Oxigen, Paytm, Mobiwik, aadhar-enabled payment system, POS, and so on are few popular modes of electronic transaction, which are commonly used by the citizen. Digitalization will embrace higher transparency in monetary terms; low-cost maintenance; more convenience in use; and help in financial inclusion and weeding out black money and counterfeit money from the economy. But journey to a destination is always full of roadblocks, and similarly the journey of India toward a digital India is also full of hurdles like a huge illiteracy rate; low bandwidth; more unbanked areas; late adoption of technology; lack of full-time electricity; security concerns like hacking, cybercrime, and safety of personal details; and need for high investments. So, to defend the dream of a digital India, we have to develop well-defined strategies to coach people in using technology like focusing on customer education as well as employee education in technology by conducting workshops, presentations, enforcing strict cyber laws, use of local language, and developing user-friendly websites that leverage technology using the development of simple and smart digital tools, such as the use of a one-time password (OTP). The government has started Vittiya Sakharata Abhiyaan (VISAKA) and outreach campaigns like DigiDhan Abhiyan and so on to encourage people to adopt digital tools. Overall demonetization is greasing the wheels of digitalization and transforming India into Digital India.
Highlights
Journey from demonetization to digitalization is very hard hitting but not impossible
The third time was on November 8, 2016, when the government declared INR 500 and INR 1,000 as no more legal tender. This will give positive result in the long term like weeding out corruption, combating black money, and so on, but if we talk about the current situation, this cash crunch has affected every segment of the economy directly or indirectly like farmers, rural man, vegetable vendors, dabbawalas, families organizing wedding functions, regional and rural banks, and so on
The second factor makes your account more secure. It has been accomplished through the introduction of one-time password (OTP), which is sent to the user at the time of making transactions, which is in the form of a numeric number or alphanumeric text on his registered mobile or mail
Summary
Investopedia (2017) defines demonetization as the current form or forms of money being pulled from circulation and retired, often to be replaced with new notes or coins. Currency notes estimated around Rs 15.4 lakh crore were withdrawn when the Centre announced demonetization This important move was taken to curb the menace of counterfeit notes and black money along with thought of reducing the corruption, increasing digital money, and so on. The third time was on November 8, 2016, when the government declared INR 500 and INR 1,000 as no more legal tender This will give positive result in the long term like weeding out corruption, combating black money, and so on, but if we talk about the current situation, this cash crunch has affected every segment of the economy directly or indirectly like farmers, rural man, vegetable vendors, dabbawalas, families organizing wedding functions, regional and rural banks, and so on
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