Demonetization has taught us in a big way the importance of digital payments. We Indians are very much habitual of holding cash, not for the purpose of transacting but our savings as well. Holding cash provides us tremendous security, not only financial but also psychological. So when we were asked to deposit the Rs 1000 and Rs 500 notes with the banks as a measure of demonetization, almost everyone was drained out of currency. We did not have much currency in the shape of small denomination notes and larger ones were out of circulation. This cash crunch forced use towards the use of virtual or digital money. Though, it was not easier, as the big merchants were accepting digital money but the small vendors selling the items of day-to-day use were not in
a position to afford virtual transactions. Still, demonetization kicked the graph of virtual transactions during this period as the Indian economy had turned into cashless economy for few days. The common men tasted the flavour of virtual transactions for the first time during demonetization. Everyone was experiencing the stringency of currency. During this period of demonetization, virtual money rescued most of us and we were able to carry on our
transactions in order to keep the wheels of the life moving on. Now that there is ample supply of newer currency notes, we are not much dependent on virtual money once again. However, as per the announcements of Reserve Bank of India from time to time, it is a clear verdict that Indian economy will be atleast a less cash economy, if not cashless, in near future. This article discusses the future of virtual payments as reality in Indian economy.
Virtual money, digital money, cashless economy