For India, right now, the victory of cashless economy is as far as the eyes see. India is becoming a large middle income country, too complex, and varied to be controlled centrally. The government will need to withdraw from occupying the commanding heights of the economy, confining itself to providing public goods and the governing framework and, leaving economic activity to the people.
To harness their collective energy, India will need many such reforms in the years o come if it is to grow rapidly in a sustainable and equitable way. These were the words of our former RBI Chief Mr. Raghuram Rajan.
GST and Demonetisation
If our country’s people are still under the influence of the infamous twin-shock of GST and demonetisation, then how can we consider the thought of cashless economy at such a tender stage. This is not just a rhetoric, it is the fuming question with only one answer, NO.
Why is India not ready yet?
Enough of the statements from the philosophical jar, lets talk facts.
India is an economy where 98 per cent of all transactions are in cash. This is due to the large informal sector, which employs 90 per cent of the workforce. The overwhelming majority of them are not hoarders of black money. And yet, India cannot become a cashless society unless its mammoth informal sector transitions to digital payments.
Lack Of Cyber Security
And right now with hackers giving proofs of how one can misuse Aadhar details by stealing a real life example of none other than the TRAI Chief, I am saying that India will be ready for a cashless economy but definitely it is not now.
We need to built homogenous network of digital security to take the baby steps for a walk which has a long road.
“A cashless economy needs robust cyber security capabilities and India isn’t ready” – KPMG INDIA CHIEF, Arun M. Kumar.