Do you think India is ready for electronic payment system?

There are some private banks which have their own policy through which  they deduct some amount from the account holder's account after every transaction through ATM card. The regular users are aware of all the rules but the first timers are usually unaware. In such a case many lose some money without  having any knowledge about it. The account holder incurs loss which is not at all fair. Thus, in cashless economy people need to know  and understand the policy of the different banks and take the advantage of the best policy or else the people may some time become looser. The nationalized banks and private banks are at times deal differently and in that case people without cash will be in trouble dealing with various issues.

What most people who criticise the governments move on demoetization including the previous ruling party is the fact that only 1% of the population pays income tax in India. The previous governments have miserably failed to bring in the private individuals, farmers , small business men and petty stores and others in to the tax net. This is the biggest loop hole ever that helped generated black money. With the demontetization drive and the impending electronic payment system ,more transparency comes into the system and this what fears most people because they will not be able to escape paying tax that easily. Has there been any progressive step in the past including opening up of the economy by Rajeev Gandhi, PV Narsimha Rao and Man Mohan Singh that has not been opposed tooth and nail ? and later lauded. Similarly,this too will pass and once fully implemented we are bond to see the difference it will make to our economy. One cannot expect things to change within a month or even two months but personally I would think that a six months period would be sufficient to implement the first step of the new economic system since obviously there is more to come !

I totally agree with Usha. Everyone needs to be brought into the loop of income tax. That is the way to churn the economy in right direction.

Moreover, when we talk about cashless economy and clean economy, we should bring in loop all the political parties and their findings . All transactions should be transparent and not in cash. No donations from anonymous source. This is definitely going to impact all parties including BJP. Hope government takes a step in that direction too. 

Today I saw that in our area many shopkeeper are accepting paytm and while seeing this I really got amazed, it also encourages me to use Paytm, and today I used that, and while experiencing all that I think that going cashless now is not a bad idea because I think this can slow the burden of demonetization smoothly, and now I can say that going cashless is a good experience for me.

I personally did not experience much inconvenience after demonetization and currency ban. I  have not yet gone to Bank. i had nothing to deposit in the bank as we keep bare minimum cash in hand. I had already asked my maid, milkman and gardener to ope their bank account last year and I used to transfer their salary online. When this currency ban was announced, my maid and gardener panicked as they had more than 30 K in cash in their hand as savings to deposit. I helped them to calm down and go and deposit in bank . I gave them holiday for 2 days to get their bank work done. So it is also the traditional mindset with these people to save cash at hand despite of having a bank account. I was surprised and gave them both a good lecture on how saving in bank is more beneficial than saving at home. I have also taught them to use Paytm. Now my maid feels that having less cash in hand is helping her to save money. She has got her debit card is comfortable using it at grocery store.

In one way I feel that there has been a lot of positive changes in the direction of cashless economy in a very short span. 

I strongly feel that empowering poor is a better way to improve the country's economy than making them the recipient of free schemes and keep them begging and poor for ever. Our earlier government have focused more on free schemes to get political brownies and done nothing to empower them. Connecting every one to banking system is a positive step towards better economy and in a long run cashless economy

Now, more and more people are switching over to Paytm that acts as a virtual wallet. It can be used instead of Debit or Credit cards..  A whole village in my state AP uses Phones Pos for essentials.I have seen a banana vendor receiving payment through Paytm

Many such examples are seen almost in the entire Country  Hit by  demonetization and cash crunch, people started finding way out of crisis

Now it is certain that cashless economy is a certainty.

With demonetisation, many things both negative as well as positive things have happened. Many people previously who were unaware of all things related to finance and economy have now started taking active interest in these matters and now are seen taking efforts to learn about them. Even the less educated people have now become more aware and have now opted to use debit and credit cards. What is a pleasing fact is that small shopkeepers, green grocers etc. have also adopted mobile payment systems such as Paytm, Rupay etc. And with passing days, more people are expected to join in.

However, the biggest challenge that we now have is related to easy availability of tech gadgets such as smartphones and their affordability and the high cost of internet data plan. These two things are what makes people avoid using these systems and once the price of smartphones and cost of data plans are brought within reasonable range, more people can avail of online portals. So now, along with financial sector, the government also needs to make things more transparent and stringent in the data communication sector for the transition from cash-controlled to cashless economy become smoother.

Technology has a habit of sooner or later attracting increasing number of users. Decreasing costs and help in gaining more users. All this has been happening in India. It does not depend on who is in power. Smart politicians try to associate with it to give an impression that they are huge facilitators. India is going to increasingly adopt electronic payments as infrastructure for these improve. Let it not be seen as an eliminator of black money as then the arguement gets twisted.

Yeah, technology has become a cup of tea for everyone, everyone even the small children now a day knows about technology and they find it as a game. I think technology are so easy and convenient for people that they can survive even they face the demonetization for the second time, but it all for the richer and the educated people but for the poor and uneducated people it's like the burden which can even take their lives.

India is moving to a cashless economy, and there are a few players in the market like paytm, freecharge which offers cashless transactions. Apart from these private companies, our government should think about some government organisations to help people in doing cashless transactions. Banks are providing cashless facilities to its customers through net banking and debit/credit cards, if they add more features and offers on using net banking and debit/credit cards, public will start using direct transactions from bank instead of using third party like paytm or freecharge. I think government take much out of note ban if they start their own organisations like paytm or freecharge.

I am not participating in the contest.  Burt let me offer my comments.  There is never abrupt change but changes definitely take place. For some time old and new system both sork simultaneously and ultimately old system fades. For example, in 1957, decimal coinage was introduced. For about a year or so, old and new coinage both were used. Conversion tables were used for paisa and new paisa.  The computer system has also gradually replaced manual system in m many offices. Now we don't find manual type writers.  But any change does not replace the old immediately. Similarly, the electronic and cashless payment method will be increasingly used. for a few years, there will be cash and cashless systems both and in a few years the cashless mode will be more prevalent. However, cash payment system will not be totally replaced for a long period. This needs more internet facility, infrastructure and skill.

This can also be considered as a sort of generation gap. we see that the younger generation is more computer and internet savvy.  In due course, there will be complete generation change.  The younger generation and coming generations will be more comfortable with cashless mode, which will be natural to them. However, as long as the older generation to which I belong, lives, there will be use of cheques and cash. Incidentally, cheque is also cashless mode even though this is not electronic mode. 

I agree with what @ Gulashan says about change being slow ! Even when a decision as momentous as Monetization has been taken we need to understand while it helps in cleaning up the system , it may not be a permanent solution to black money. More steps need too betaken and by the look of things are being taken by Mr Modi and his team which would definitely fight black money generation to a great extent. Cheques , I find are not preferred much probably because of the paper work involved and the delay in transaction since unless it is from the same bank , cheques normally take anywhere between 2-4 working days to get cleared. In these past 40 odd days after Monitization drive began I see that almost all the smaller shops have switched over to Paytm and card transaction although some are not happy about it because it would give away their  earnings , which so far had been safe with them and hidden from the tax department. But generally speaking people have accepted card payments and less cash in hand as the future mode and are preparing themselves for it ..

I totally agree with Gulshanji. He has very beautifully put across that changes do not occur overnight and take time. And a momentous decision like demonetization is surely a very big and drastic change. It has a dominos effect or ripple effect as it directly or indirectly effects many  aspects of economy and day to day life. It will take some time for digital economy to sink in and become an integral part of the life. But the seed has been sown and needs constant nurturing and encouragement through thought out plans and execution.

I too agree with Usha ji that though not completely it will curb black money to a great extent. People happily or reluctantly are getting mentally prepared for less cash and digital transaction in future. 

I think awareness is the key. I felt that having a smartphone is must for digital transaction. Many people in rural area have mobile phones but no smartphones. That is the case with small vendors too. But day before yesterday, I read in newspaper about USSD i.e Unstructured Supplementary Service Data transfer. This does not require smartphone or Internet connection. Any phone can be used provided the number is registered with bank. one can access various banking facilities including transactions by merely dialing a USSD code from any phone with SIM card. I was not aware of it. This is a breakthrough. 

Though it seems a far dream. If we think constructively, we can find ways to reach there. When there is a will, there is a way.

 While on one side,Modern Gadgets compatible to the the present need of the Country, Cashless economy is entering the Country spreading like wild fire, and on the other side, even in the far flung regions, people are realizing the importance of Cashless economy. This is what, the Government has been saying consistently to know the importance of Cashless economy and its benefits. The best part is, people are supporting the Government.

In this scenario, Cashless economy will be there in the Country.

Though it takes some time for our country to be with electronic transactions, but it is also true that it is not possible for a country like India to be completely cashless. People of India have a habit of living with corruption, in past years the corruption was done by cash physically, now the corrupt people will start taking money in e - transactions. Our government is taking fast steps to control such people, but cannot be stopped fully. India is looking for a better future and in this hope people are facing small problems happily and hope that the situation will settle down in near future.

Yes, it is really seems like impossible for India to go cashless fully at once yeah it will take too much time for the Indians to go into this path and that can only be happen if they get the assurance that going cashless doesn't harm anything instead it is profitable for them, I think after demonetization many people have gone through in the path of Cashless, but it will only be successful if they make the habit of going cashless.

While cashless is a laudable goal it need not be hurried. It will continue to develop as the necessary infrastructure expands as per the resources deployed. However the point to be noted is it was not the goal of demonetisation but is a convenient diversionary ploy.

Gulshan Kumar Ajmani wrote:

I am not participating in the contest.  Burt let me offer my comments.  There is never abrupt change but changes definitely take place. For some time old and new system both sork simultaneously and ultimately old system fades. For example, in 1957, decimal coinage was introduced. For about a year or so, old and new coinage both were used. Conversion tables were used for paisa and new paisa.  The computer system has also gradually replaced manual system in m many offices. Now we don't find manual type writers.  But any change does not replace the old immediately. Similarly, the electronic and cashless payment method will be increasingly used. for a few years, there will be cash and cashless systems both and in a few years the cashless mode will be more prevalent. However, cash payment system will not be totally replaced for a long period. This needs more internet facility, infrastructure and skill.

This can also be considered as a sort of generation gap. we see that the younger generation is more computer and internet savvy.  In due course, there will be complete generation change.  The younger generation and coming generations will be more comfortable with cashless mode, which will be natural to them. However, as long as the older generation to which I belong, lives, there will be use of cheques and cash. Incidentally, cheque is also cashless mode even though this is not electronic mode. 

It is right Gulshan Ji our new generation success dream of cash less economy.

In keeping with its plan to move over to a Cashless economy, the Government has decided to implement some measures. They are, promotion of payments through Cards and Digital means is facilitating coordination among different agencies  to ensure speedy roll out of initiatives including Digital payments through Ration Shops strengthening the Network of Business Correspondents in rural areas and equipping all existing and future ATMs with the Aaadhar authentication facility.

Cashless economy is the only pragmatic way in a long run to push growth and have a more clean economy.

1. It will definitely curb the parallel economy which runs on cash or black money and help country's growth.

2. It will lead to more compliance and respect for the law.

3. The unaccounted money will be brought into account. It reduces the liability of the government and add to it's finances. Government can invest more into infrastructure projects.

4.. Cashless economy will change the mindset of people. Instead of keeping cash at home, they will keep it in saving accounts in bank, contributing to more productive use of funds.

5. Savings in financial assets helps banks and will result in lower inflation and interest rates.

6. we can expect greater transparency and higher tax compliance. It will also be deterrent to tax invaders. 

7. It will help with financial inclusion, a long cherished dream for a developing country like India.

8. The more transparency in transaction will improve tax revenues- direct or indirect as one will see no incentive in hiding the transactions.

So overall though not an easy task, it is definitely the best thing to happen for bright future. If everyone pushes for it and promotes it it will be soon axheived.