Prospects and Challenges of Cashless Rural Economy: An Analysis | Original Article

ABSTRACT:

Government need to guarantee fundamental requirements in rural regions and cognizance on growing infrastructure. Special drives via schools, colleges, Panchayats and so forth. Can assist create focus approximately cashlessbanking transactions. Financial Literacy is a ought to for bringing increasingly more human beings to virtual platform. Digital price or price via banks, rather than paying coins need to be encouraged. Linkage of all welfare sports with financial institution bills is a completely strategic step. With cashless transactions, nearly all transactions will depart a virtual footprint. A gadget that encourages and incentivizes the 'buyer' to pay via cashless instruments (growing use of financial institution to financial institution transactions without related to the bodily forex) may have better monetary transparency. This is possibly the maximum direct manner of scuffling with troubles in corruption and black cash in India. Digital footprints produce other fundamental advantages. It could make public shipping structures plenty greater efficient. In 2009, the Planning Commission expected that simplest 27 according to cent of Public Distribution System (PDS) expenditure reached the focused low-profits groups. Digitalization of transactions is the satisfactory manner to transport in the direction of cashless financial system. Such a cashless financial system can be attainable via way of means of selling digital cash instruments, growing monetary infrastructure and spreading virtual transaction habits amongst human beings. Government's demonetization force is likewise imagined to advantage cashless financial system.Still there are numerous constraints in addition to potentialities in the adventure in the direction of cashless financial system. The cognizance is to make the branches an unmarried factor interface for all offerings. Technology is a extremely good enabler for monetary inclusion, which incorporates Branch and Wheels, a cellular-van-primarily based totally department that targets at presenting banking offerings to a cluster of faraway unbanked villages.