Demonetisation - Move Towards Cash Less Economy

Abstract

An attempt has been made to highlight the impact of demonetization on the growth of digital payments in India. This move is expected to cleanse the economic system from the evil of black money. The attempt has also been made to lower the circulation of cash in the economy and encourage the use of digital payment methods which will lead to increase in revenue of the Government. India is on cusp of financial revolution as large number of measures is being taken to move from cash dependent economy to cash less economy. At present only 5% personal consumption expenditure in India is digital. After demonetization, mobile wallets saw the highest percentage increase in the value of transactions among the digital payment methods. Transactions using the newly introduced UPI have increased from ₹ 90 crore in November 2016 to ₹ 1,659 crore in January. 125 lakh people have adopted the BHIM app so far. Government has a Mission to achieve target of 2,500 crores digital transactions for 2017-18 through UPI, US.SD, Aadhar Pay, IMPS and debit cards.