CASHLESS ECONOMY IN INDIA
A cashless economy describes an economic state whereby the exchange of any article to another, does not involve the exchange in the physical form of notes or coins. Dating back to history, the early forms of exchange in the society happened only through barter system. This involved the exchange of goods, which were thought of to be of the same value or evaluated so. To look back at the introduction of Rupee in India, it goes back to the ancient Indian times, more precisely 6th century B.C., where it is said that Chinese ‘Wen’ , Indian ‘Rupee’ and Lydian ‘staters’ came into enforcement, more or less at the same time. Later, the medieval Indian history portrays Shershah Suri as the first issuer of coins in India. Later in the 18th century, during British rule, paper notes were issued by Bank of Hindostan, the General Bank of Bengal and Bihar and the Bengal Bank. Later ‘Rupee’ was divided into ‘Anna’ and further to ‘Paisas’. After a few years, ‘Anna’ was dropped and of late, it is only ‘Rupee’ that is in use.
With the gradual development of economy and the major changes in the political and social front, changed the many aspects of life. The currency system traced back exactly from 1835 to 1st April 1957 and from 1st June 1964, lot of legislative and market alterations have gone by.
Then came in the establishment of Imperial Bank, RBI and nationalization of banks and such other changes. After all the crisis, depreciation, devaluation and revaluation era, has come the modern concept of “Cashless Economy” in new format of all other programmes of Government of India, “Faceless, paperless, cashless” is one among the flagship programmes of transforming India, which is also a part of Digital India Programme. This programme has a vision of transforming the nation with a digital empowerment and knowledge economy. The “Cashless economy” now means transfer of digital information between the transacting parties. It generally means that cash is replaced by a digital equipment where only records exhibit the legal tender money. Word is experiencing a very fast and a mounting use of digital methods, in be it commerce, investment or a normal daily life. The trend of cashless started becoming popular in the 1990’s and the spree continued, by 2010, digital transfer has become very widespread throughout the country. This is substantiated through via media of certain software companies like that of ‘Apple’ and so. There are ten digital payment methods as of now in India. Banking cards, USSD, AEPS, UPI, Mobile Wallets, Banks Pre-Paid Cards, Point of Sale, Internet Banking, Mobile Banking and Micro ATMs. Banking Cards, Micro ATMs and Point of Sale are more used among all others. A user friendly method, with little understanding of technology sufficing, is always a welcome note. Rural India is to be enabled with a technology of total cashless transaction zone. It is aimed at demolishing money laundering, financing of terrorism, black – money, corruption and so on. It is also believed that quantitative easing is made possible by this to a great extent. The demonetization process, is a mighty step of India towards this. Singapore stands first in the world with 61% of transactions happening through cashless means. India today accounts for just 2% of such transactions. Denmark has stopped printing banknotes. Its minting units have also pulled the shutters down recently. This fundamental shift to a mobile economy should happen in India too. Long way to go for India on the digitalization, many more experiments and success is hoped in the light of realizing the vision.