From Cash to Cashless Economy: Catalytic Agent for Financial Inclusion?

Abstract

The announcement by Prime Minister Narendra Modi on July 1, 2015 towards “making India Digital” was meant to pave Indian economy‟s future for larger proposed changes in terms of financial literacy. The drive intended to associate pastoral areas with high-speed internet so as to improve the digital awareness and usage. Thereafter, the catalytic thrust from demonetisation further accelerated migration towards digital payments in November and December 2016. However, ease in availability of cash by gradual remonetisation jolted the pace of growth of digitalisation in February 2017. In this context, the future outlook of Indian economy guarantees fast-track growth that carries preliminary pre-requisite for the people to be financial literate, to begin with. Thus, „Digital financial literacy‟ shall require more strengthening. This paper spots the rationale and sequencing of the targeted drives to facilitate building on the „financial literacy infrastructure‟ principally to benchmark future India. The key policy implication of the current study includes the solution to the dilemma and apt targeting of the various programmes for financial stability and sustainability through „Digitally Literate Future‟.