Cashless Economy

Cash is the only mode of transaction for people of more than six lacks villages in India.  Small traders who are more than 1.5 crore and poor people of urban semi-urban areas, labours, daily wagers and even lower middle class society are totally depend on cash and are not connected with banks.  Jan Dhan Yojana might have compelled them fractionally to associate themselves with banking system.  However, for day to day activity cash is an essential commodity.  In vegetable and grain market all transactions are in cash.  When more than 65% of Indians are struggling for one square meal how we expect to transform the country from cash to cashless in one stroke.  To quote an example, mobile is an essential commodity in metros and cities.  On the contrary, today also mobile is unessential to rural masses.  Slowly and steadily mobile is being introduced in these areas with restricted applicability.  Its fullest utility at every nook and corner will require many more years.  In the same fashion cashless economy will be a dream rather than reality in the present context.  The basic reason is nothing has reached up to village level.  Observation made by Rajiv Gandhi regarding 16% utility of fund at receiving end is correct and applicable in the present context.  Experience says that in India reform is always at snail speed when we talk about poor masses.  So transition form present to cashless society is only possible if reforms are made at every level.  Education, health, family planning, road, water, housing are some of the areas where immediate attention is required.  Banking and non-banking institutions needs to introduced and strengthened at village level.  Through Jan Dhan Yojana villagers and poor needs to be educated so that they will realize the importance of banking institutions.  Then only slowly the dependency over cash will be reduced.  Please do not compare well educated urbanite with poor villager.  There is a big gap.  Aspiration of both differ.  Our objective should be to reduce  the gap then only dream of cashless economy will become a reality.