Cashless transaction

The move of the central Govt to go for cashless transaction may take a longer time as the people of the country, particularly in rural area, are still clueless about the cashless economy.
Observers say that there are still a number of hurdles in making India a cashless economy. It is said that a large part of the population is still outside the banking net and not in a position to reduce its dependence on cash.
According to a 2015 report by PricewaterhouseCoopers, India’s unbanked population was at 233 million. Even for people with access to banking, the ability to use their debit or credit card is limited because there are only about 1.46 million points of sale which accept payments through cards. Moreover, success of cashless transaction depends on availability and quality of telecom network. It is observed that even in some big cities in the country, people are still facing difficulties in making electronic payments.
Meanwhile, a new study suggests that mobile money services, which allow users to store and exchange monetary values via mobile phone, can help lift people in developing economies out of poverty. These services have helped Kenyans save more money. The study, published in the journal Science, showed that mobile-money services have had notable long-term effects on poverty reduction in Kenya — especially among female-headed households — and have inspired a surprising occupation shift among women. The mobile-money services have helped an estimated 185,000 women move from farming to business occupations, the study said.
However, in India, if the Government want to make the cashless transaction a success story, it needs to play its part seriously so that poor and rural people of the country do not suffer due to cashless economy.



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