India,
runs on cash to the extent of 86% and which has only 30 million credit cards
and 700 million debit cards against the population of 1.23 billion (Indian Currents
Vol.26(50)2016).

How
far is it possible to have cashless economy? The measures were not taken
properly before implementing the idea of cashless society. In India around 60%
of the people does not have debit card and the study reveals that the
percentage of people who have the facility of Internet connection, is only around
34% of the total population. It is true that banks recently introduced mobile
applications for the transactions. But even then there is a question mark
regarding the percentage of Indian population capable of using it and handling
the digital system.

Being
large economy India would not have step immediately into this idea. But rather
the government should have first taken certain measures to implement it and
even find solutions to teach the people or guide them to use it. And also the
government should think of cyber securities of digital transactions. There may
be securities but despite of these, people are shocked to read that security of
around 3.2 million debit cards was compromised barely a month before demonetization.
As of now, the law book has not dedicated a law to protect the consumers’
interest, neither for their loose of money during digital transactions nor for
loading a complaint (Indian Currents Vol.26(50)2016). The provision in Section
43A of the Information Technology Act seem to be inadequate to protect the kind
of information that one shares with apps like Paytm, Mobiwik, Freecharge etc.

The
situation in Indian scenario is different from other countries. To make into
practice for digital economy to 100 percentages is very difficult, because as
we know in the interior place of the villages the facilities are lacking and
people are not well educated. So the unplanned and sudden action of
demonetization will ruin our economy. Poor will bear highest cost because of
going cashless. The aim behind demonetization was to control black money and
also to stop corruption. I think there is a possibility that the corruption can
be in the form of other currency like Dollar, Euro etc.  This happened in Russia. People lost their
lifetime savings when the Soviet Russia collapsed. Since then they have been
keeping their savings in dollars or euros. Officials in that country asked
bribes in dollars (Indian Currents Vol 28(52), 2016). There is a possibility in
India too. The havoc brought by the demonetization can result in uncertain
future for millions of poor, tribes, backwards etc. 

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