Cashless transaction challenges

The government’s move of demonetization has led to a push towards digital transactions. But the government faces a slew of challenges to mark a shift towards a cashless digital economy.

Challenges Government and Institution face in making India shift toward cashless transactions:

a) Behavioural change: Adapting cashless transaction from age old conventional methods will take time to become a habit.

b) Psychological change: Cashless transaction involves people’s scepticism and fear of loosing money and whom to approach in case of failed transaction .

c) Class divide : This have widen the gap between banked and unbanked population .This divide will encourage one class while other will take this as a business of other class.

d) Divide in internet and mobile reach: Lack of infrastructure and mobile telephony to rural area are barriers.

e) Illiteracy : it’s a biggest barrier toward illiterate people to first understand this change .


How it can be addressed?

a) Attractive incentives: Government incentives similar to ‘Lucky grahak Scheme’ must be continued and promoted.

b) Setting up of Online banking ombudsman: Similar to Banking ombudsman ,Government should assure people of their money and redressal of grievances by creating an online banking ombudsman.

c) Strengthening IT security :Leak of banking details and data breach may lead to serious problems to a customer .It should be strengthen to take customers into confidence.

d) E-Education : A weekly e-education on benefit and usage of online transaction be taken in rural areas .

e)Government transactions should all be done by cashless mode .

f)Focus of providing internet to far plunged area through BHARAT.NET and project loon etc can be worked out and expedited .

g)Women section of the society should also be associated as they are the one who are always left behind in any technological evolution

In India cashless economy is in evolving period. Institutions must be very careful in implementation as if faith failed to build up for cashless transaction it will be very difficult to adept later.

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