Essay on
Cashless India
Essay on Cashless India in English
A cashless India is the first step towards making the dream of digital India a
reality. In this cashless India essay, we will be talking about the meaning of
‘cashless’, the different alternatives for our monetary system, and the
disadvantages and advantages of a country going fully cashless and digital
in its economy. The following cashless India essay in English is for
students studying in class 5 and above. The language here has been kept
simple for a better understanding of young students. This essay on
cashless economy in India would enable young students to write an essay
on the cashless economy in India on their own.
Long Essay on Cashless India
On the evening of November 8, 2016 at 8 P.M., Narendra Modi, the Prime
Minister of India announced the demonetization of 500 and 1000 rupees
notes in India. That historic decision had many reasons. One of the
reasons was laying the stepping stone towards the dream of cashless
India.
The traditional form of monetary transactions happens with the exchange of
physical hard cash between people. Cashless India is going to make it
almost redundant. This idea has got a huge amount of push due to the
ongoing COVID-19 pandemic, given the concerns with the exchange of
physical cash. There are a lot of advantages to going cashless. Along with
advantages, there are disadvantages of going cashless too. We shall throw
some light onto both in this article on cashless India.
First of all, let’s understand the meaning of a cashless economy. A
cashless economy is one in which the liquid transactions through the
system happens with the exchange of plastic currency or through digital
currency. ATM debit and credit cards are plastic currency and online
payments come under digital currency. The advent of blockchain
technology has redefined the meaning of a cashless economy through
bitcoins. A decentralized system of finance is defined by the concept of
bitcoins, but we are not focusing on that in this particular essay on cashless
India. Let’s move on to the pros and cons of a digital payment system.
We can see Three Main Advantages of Cashless India.

Reduction of Black Money
Black money is the money that is earned but not accounted for taxes. That
money is hidden by people from paying taxes. This black money is an
illegal instrument in an economy that is capable of reducing a government
down to bankruptcy. The cashless economy will ensure there’s no black
money since unlike hard cash digital money cannot be hidden. At least
there is no way yet that could make the hiding possible. Digital money
enables governments to track all transactions in an economy that helps
keep the income authentic and transparent. The technology behind the
digital economy has to be well updated and sturdy though.

Transparency
India has corruption inbred in its system starting from the ministerial level to
the watchman level. And it exists due to the lack of transparency in our
monetary system. In an economy that is as big as India, transparency is a
huge issue. We have learned of scandals like the CWG or 2g scams or the
Rafale Jet scams over the years, and these scams are a result of the lack
of transparency in transactions. It’s a shame that a small cashless
economy in India essay would never do justice to the topic since it will
never be enough to write about all of the corruption scandals India has had
since its independence. Corruptions of this scale could be brought down to
a large extent if we could achieve that dream of a cashless economy
throughout. And it's possible because the origin and endpoint of a
transaction could easily be tracked in a cashless economy and that’s the
biggest advantage.

The Ease of Transaction
With the enormous amount of technological revolutions happening, it is
close to impossible to find people without a smartphone in these times.
Almost every citizen possesses a smartphone. The ease of transaction
through interfaces like GooglePay or PhonePe or Paytm has never been
more seamless than this. The Indian government has also introduced
interfaces like UPI or Unified Payments Interface for hassle-free digital
transactions that are fully cashless. The dangers of transmitting possible
viruses on hard cash are totally eliminated.
There are Two Major Disadvantages of Cashless India.

Online Theft
With the improving technology of every day, there’s a rampant increase in
online cheating and fraud episodes. If the government is unable to achieve
sturdy and not-possible-to-hack digital systems, in a country like India with
a 135 crore population, it is completely impossible to make the economy
cashless. People are still afraid of making big transactions online after
watching the reports of online thefts on national news channels.

Infrastructure, or the Lack of it
Not just the government infrastructure, it requires infrastructure on an
individual level too. A gadget or a smartphone, data connectivity, and
electricity for charging the phones regularly are the basic requirements for
making online transactions possible. These are privileges that exist mostly
in urban India and most of rural India is still deprived of these privileges.
The government should first fix this before even dreaming of making a
cashless India possible.
Short Essay on Cashless India
The Government of India took the whole country by storm by announcing
the demonetization on 8th November 2016. 500- and 1000-rupees notes
were no longer legal tender. This move was aimed at getting rid of the
black money in the economy that was largely used to fund criminals and
terrorists and formed a parallel economy. The acute shortage of cash led to
long queues outside ATMs and banks trying to withdraw cash or exchange
notes. This was all to initiate the fruition of a dream of cashless India.
Summary
In the end, the demonetization step became crucial to start a cashless
economy in the country. It has paved the way towards an economy in India
that is defined by greater transparency and convenience and ease in
monetary transactions.