Transformation Towards Cashless Economy – An Indian Perspective

Abstract

One of the offshoots of 2016 demonetization of Indian high denomination bank currency notes is that the country can progress towards becoming a cashless economy. Several countries around the world are trying cashless transactions in one form or the other for various reasons and with reasonable success. This paper examines the global practices and analyses end-user perception in the Indian context. Data collected from survey is analysed to understand the various problems faced by payment and transaction making consumers. What factors such as (age, gender, occupation, income levels and problems) impact customers to do a transaction in cashless mode? What are the major deterrents for making a cashless transaction? What can various stakeholders such as the public, banks and financial institutions, regulators, central banks and governments do to accelerate India to turn into a fully cashless economy? These are problems are examined and suggestions for the same are provided.