Cashless.pdf

ZAKIR HUSAIN DELHI COLLEGE

“CASHLESS INDIA”

A PROJECT SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR DEGREE OF B.COM (H) UNIVERSITY OF DELHI

BY ....... HARSH GUPTA COLLEGE ROLL NO-14/7 EXAMINATION ROLL NO-14085204055 SECTION- “A” B.COM (H) UNDER THE SUPERVISION OF DR. ABDUL WAHID FAROOQI DEPTT. OF COMMERCE Z.H.D.C. (UNIVERSITY OF DELHI) SESSION 2016-17

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DECLARATION

I hereby declare that the project entitled “cashless India” has not previously formed the basis for the award of any degree, diploma or other similar titles for recognition. This work embodies the result of my 0riginal work and reflects an advancement in the area.

DATE-

HARSH GUPTA

PLACE-

B.COM (H) SEC-“A”

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CERTIFICATE

This is to certify that project entitled “Cashless India” submitted to Zakir Husain Delhi College (University of Delhi) in partial fulfilment of requirement of the course of B.com. (h) VIth semester, embodies a faithful record of original work carried out by Mr. Harsh Gupta under my supervision and guidance and that this work has not been submitted in part or full for any degree or diploma in any other university.

DR. A.W. FAROOQI SUPERVISOR

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ACKNOWLEDGEMENT

I wish to express my sincere to MR. A. W. FAROOQI, my mentor, to carry out this research project on Cashless India. I sincerely thank him for his guidance and encouragement for carrying out this project. And my friends for motivating and helping me throughout the project. It would not have been possible without them.

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CONTENTS

PAGE NO.

1. Introduction 1.1 Current monetary system & drawback 1.2 Problems with current economy & digital economy 1.3 Ways of paying money in cashless economy

6 7 7-11

2. Government initiative

12-13

3. Benefits & challenges of cashless economy 3.1 benefits of cashless economy 3.2 challenges of cashless economy

14-17 17-20

4. Demonetization 4.1 cashless economy boosted by demonetization 4.2 impact on peddler & hawkers

21 21-23

5. Research objective

24

6. Research methodology

25

7. Data analysis & interpretation

26-38

8. Findings & suggestion 8.1 Summary of findings

39

8.2 Suggestions

40

9. Conclusion

42-44

10. Bibliography

45

11. Annexure 11.1 Questionnaire

46-48

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1.INTRODUCTION 1.1The Current Monetary System and It’s Drawbacks Most economies in the world have a central bank or an authority that reserves the right to manufacture paper and metal currency and is responsible to assure the bearer of its assigned value. While this might come across as a fairly easily understandable system, there is a lot more that goes into ‘money creation’. The amount of cash in an economy at any instant is guided by the market forces of demand and supply and the central authority in charge regulates the flow of cash into (or out of) the market. Cash, however, is only the physical instantiation of money. The reason why cash has been a popular form of exchange for such a long time is because of the tangibility that it provides to the entire idea of money. But does money really need to have a physical form that people could identify with? Perhaps not. The reason being that money in the form of cash has more that it takes away from us than it gives us. Outlined here are some major drawbacks of cash At an individual level, cash is inconvenient to carry and manage. It cannot be traced or insured as cash once lost or stolen cannot be recovered.  Cash is expensive to print, inspect, move, store and guard.  Counterfeiting is always going to be a problem as long as paper currency exists.  Hand-to-hand currency is favoured by criminals as it does not leave a paper trail.  Cash transactions are not trackable in nature, thus providing no transparency. This leads to corrupt practices and financial crimes such as excessive money laundering.  Monitoring of tax compliance is difficult for the Government.  High cash usage results in a substantial amount of money outside the formal economy, thus stunting the effectiveness of policies aimed at managing inflation rates.  From a global perspective, the economic growth imperative inherent in the current monetary system plays a major role behind global warming and other environmental crises. In wake of the issues highlighted above, some governments are already viewing the use of cash in a negative light. In fact, according to the U.S. Government, cash payments are now thought of as ‘suspicious’ activity that needs to be reported to the authorities.

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1.2Problems with Current Indian Economy: •

The modern Indian Economy is quiet fragile and unstable.

•

A lot of Black Money exist in our Economy. The amount is greater than what are pending loans on India.

•

So much taxes exist that it is tough to even name them all.

The country of 100 crores is run by the taxes of just 3 crores. This means that the taxation is improper

A Digital Economy:•

A Digital Economy is one where purchases and transactions are done mainly by electronic means and cash is seldom used.

•

As Cash is seldom used, it can also be called as a “Cashless Economy”.

This idea is new coming and only exists in a few countries 1.3 WAYS OF PAYING MONEYPrime Minister Narendra Modi made a strong push for a ‘cashless economy’ in his monthly ‘Mann ki Baat’ radio address. A day later, his office publicised a number of alternative payment modes in a series of tweets titled ‘My mobile. My Bank. My wallet: Transactions without cash’.

Here are the five alternatives that the PMO tweeted about:

1. Unified Payments Interface (UPI) “It’s as easy as sending a message from your phone! Every bank has its own mobile app – so it’s now possible to transact on your smart phone,”

How:

Register your mobile number at your bank or ATM Download the UPI app on your mobile 7

Make your unique ID Set your UPI PIN Advantage:

Transactions can be carried out from any location, between any two individuals No need to pre-add beneficiary

BHIM BHIM (Bharat Interface for Money - Bhim App) is a Mobile App developed by National Payments Corporation of India (NPCI), based on the Unified Payment Interface (UPI). It was launched by Narendra Modi, the Prime Minister of India, at a Digi Dhan programme at Talkatora Stadium in New Delhi on 30 December 2016. It has been named after Bhim Rao Ambedkar and is intended to facilitate e-payments directly through banks and as part of the 2016 Indian banknote demonetization and drive towards cashless transactions. This UPI app supports all Indian banks which use that platform, which is built over the Immediate Payment Service infrastructure and allows the user to instantly transfer money between the bank accounts of any two parties.It can be used on all mobile devices.

Benefits BHIM allow users to send or receive money to other UPI payment addresses or scanning QR code or account number with IFSC code or MMID (Mobile Money Identifier) Code to users who do not have a UPI-based bank account. BHIM allows users to check current balance in their bank accounts and to choose which bank account to use for conducting transactions, although only one can be active at any time. Users can create their own QR code for a fixed amount of money, which is helpful in merchant — seller — buyer transactions. They can also have more than one payment address. If the 12-digit Aadhaar is listed as a payment ID on the BHIM app will not require any biometric authentication or prior registration with the bank or Unified Payment Interface (UPI). During Union Budget 2017, Union Finance minister Arun Jaitley said that Government will launch two new scheme to promote the use of the BHIM app. One will be referral payments for individuals, and the other will cashback for merchants who accept payments from BHIM. During the Union Budget 2017, Union Finance minister Arun Jaitley said that BHIM is currently being used by over 125 lakh Indian citizens.

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2. e-Wallet “It’s as easy as sending photos through your phone! Through the e-Wallet, money transactions are possible with mobile or computer,” said the PMO tweet. How:

Choose an e-wallet service of your convenience and download the app Register your mobile number Link this with your debit card, credit card or net banking Advantages:

Many options available, from private players to wallets offered by banks and even telephone companies Most wallet services allow recharges of denominations of the consumer’s choice PAYTM at HIGH

•

Paytm, India’s largest mobile payments company and an e-commerce platform, has said that post demonetization of Rs.500 and Rs.1000 notes, it has touched a record five million transactions a day, against Rs.2.5-3 million transactions earlier.

•

Paytm has touched a record 5 million transactions a day and is on the way to process over Rs.24,000 crore.

•

The company said it had registered a 700 per cent increase in overall traffic and 1,000 per cent growth in the amount of money added to the Paytm accounts over the last couple of weeks.

•

The number of app downloads went up 300 per cent, while the number of transactions per user went up from 3 transactions to over 18 transactions in a week

•

Over 8,50,000 offline merchants across India accept Paytm.

•

The highest increase in usage was seen in Chennai, followed by Ahmedabad, Hyderabad, Kolkata and Bangalore.

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3. Cards, PoS These are pretty common in urban areas. PoS stands for ‘point of sale’. These are the payments you can make using your debit cards or credit cards . How:

Get a debit card against your bank account, or apply for a credit card Set and remember your PIN Swipe your card, enter the amount to be paid, punch in your PIN Advantages:

Debit cards come almost automatically with bank accounts Cards can be used for withdrawals and deposits at ATMs across the country, and even abroad Cards can also be used for online transactions

4. Aadhaar Enabled Payment System (AEPS) “Why rely on your bank, when you can bank on Aadhaar! Now link your Aadhaar card with your bank account,” read the PMO tweet.

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How:

Link your Aadhaar card with your bank account Remember your Aadhaar number or carry a copy of your card Remember the bank in which you have the account which has been linked to your Aadhaar card Transactions to be authenticated using fingerprint recorded for Aadhaar biometrics Advantages:

Balance inquiry, cash withdrawals, cash deposits and Aadhaar-to-Aadhaar fund transfers No extra registrations needed Could be useful in rural areas, with transaction carried out by banking correspondents

5. Unstructured Supplementary Service Data (USSD) This allows fund transfers through the interface of any mobile phone. How:

Link your mobile number to your bank account Dial *99# from your phone Identify your bank by entering the first three letters or the first four letters of your branch’s IFSC code In the menu that pops up, chose ‘Fund Transfer-MMID’ Enter the mobile phone number and MMID of the recipient Enter the transfer amount and your MPIN, followed by a space and the last four digits of your account number Advantages:

No smartphone required No mobile internet connection needed

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2. GOVERNMENT INITIATIVES Highlights of the incentives announced – 1) Discount on fuel Purchase 0.75% discount on buying petrol and diesel through debit cards, credit cards and ewallets. 2) PoS Machines in Village: Currently, there are 6.5 lakh Point of Sale (PoS) machines across the country. Villages with a population of up to 10,000 will get 2 Point of Sale machines free of cost and that one lakh villages will be selected for this scheme of availing free Point of Sales machine. 3) Ceiling on Monthly Charge on PoS Machines Monthly rental for PoS terminals/Micro ATMs/mobile POS given by banks will be capped at Rs 100. This is aimed at bringing small merchants on board the digital payment eco-system. 4) Discount on Suburban Railway tickets: Discount of 0.50% for purchase of Sub-urban railway monthly and seasonal tickets from 1 January 2017 5) Insurance Cover for Rail Travellers: Railways will provide free accident insurance coverage of Rs. 10 Lakhs for passengers who are booking the tickets online. Currently, 58 percent passengers buy tickets online 6) Discount on Rail Utilities: Railways will also offer 5 per cent discount on digital payments for accommodation, catering and retiring room bookings at railway stations 7) Service Tax Exemption: No service tax will be charged on credit and debit card payments on transactions of up to Rs. 2,000 in a single transaction.

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8) Discount on Highway Toll: For online payment of toll on national highways using RFID card/fast tags a discount of 10 per cent will be offered. 9) Discount on Insurance Premiums: Customers paying payments through online gateways of public sector general insurance companies will be given a 10 percent discount. The discount will be 8 percent for premium of new life policies made through the portal of Life Insurance Corporation (LIC) 10) Rupay Cards to Farmers: Rural Regional Banks and Co-operative Banks to issue ‘RupayKisan Cards’ to 4.32 CroreKisan Credit Card Holders. This will benefit farmers of 1 Lakh village covering a total population of nearly 75 Crore who will have facility to transact cashlessly in their villages for their agri needs. And lastly, 11) Public dealings with government departments and PSUs through digital mode will be free of transaction fee and MDR charges.

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3. BENIFITS & DRAWBACKS OF SHIFTING TO A CASHLESS ECONOMY 3.1 BENEFITS Advantages of digital transactions 1. Convenience The ease of conducting financial transactions is probably the biggest motivator to go digital. You will no longer need to carry wads of cash, plastic cards, or even queue up for ATM withdrawals. It's also a safer and easier spending option when you are travelling. "The benefits are enormous if you leave out the low-income group, which will face a huge challenge," says Kartik Jhaveri, Director, Transcend Consulting. "For the rest of the country, it is constructive and simple. It will be especially useful in case of emergencies, say, in hospitals," he says.

Adds Jayant Pai, Head, Marketing, PPFAS Mutual Fund: "You have the freedom to transact whenever and wherever you want. You don't have to be physically present to conduct a transaction or be forced to do so only during office hours."

2. Discounts The recent waiver of service tax on card transactions up to Rs 2,000 is one of the incentives provided by the government to promote digital transactions. This has been followed by a series of cuts and freebies. It's a good time to increase your savings if you take advantage of these. For instance, 0.75% discount on digital purchase of fuel means that the petrol price in Delhi at Rs 63.47 per litre can be brought down to Rs 62.99l with digital payment. Similarly, saving on rail tickets, highway toll, or purchase of insurance can help cut your costs.

Add to these the cash back offers and discounts offered by mobile wallets

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like Paytm, as well as the reward points and loyalty benefits on existing credit and store cards, and it could help improve your cash flow marginally.

GO DIGITAL, GET DISCOUNTS

Service tax: Waiver of service tax of 15% on digital transactions up to `2,000.

Fuel: 0.75% discount on digital purchase of fuel through credit/debit cards, e-wallets or mobile wallets.

Rail tickets: 0.5% discount on monthly and seasonal suburban railway tickets from 1 January 2017. Online rail ticket buyers get up to `10 lakh free accident insurance too.

Rail catering: 5% discount on digital payments for railway catering, accommodation, retiring rooms, etc.

Highway toll: 10% discount on NH toll payment via RFID or fast-tags in 2016-17.

Insurance: 10% discount by government general insurers on premium paid online via their portals. 8% discount on new LIC policies bought online via its site. POS: Rs 100 a month is the maximum rent that PSU banks can charge for PoS terminals. Rupay: Kisan credit card holders to get RuPayKisan cards.

3. Tracking spends "If all transactions are on record, it will be very easy for people to keep track of their spending. It will also help while filing income tax returns and, in case of a scrutiny, people will find it easy to explain their spends," says Manoj Nagpal, CEO, Outlook Asia Capital. "Besides the tax, it will have a good impact on budgeting," says Pai.

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It may not seem like much of an advantage, but being cashless makes it easy to ward off borrowers. Another plus is that you can pay the exact amount without worrying about not having change or getting it back from shopkeepers .

.

4. Budget discipline The written record will help you keep tabs on your spending and this will result in better budgeting. "Various apps and tools will help people analyse their spending patterns and throw up good insights over a couple of years," says Jhaveri. Controlled spending could also result in higher investing.

If the same amount of cash does not flow back into circulation and people continue to use mobile wallets and cards, it is also likely to bring down the latte factor. This means that the `10 you spent on candy or chips, or that regular cup of coffee office is likely to take a hit since you will be short of loose change and smaller currency notes. There's a lesser chance of budgetary leaks and unaccounted for spends sneaking into your budget at the end of the month. 5. Lower risk

If stolen, it is easy to block a cred it card or mobile wallet remotely, but it's impossible to get your cash back."In that sense, the digital option offers limited security," says Pai. This is especially true while travelling, especially abroad, where loss of cash can cause great inconvenience. Besides, if the futuristic cards evolve to use biometric ID (finger prints, eye scan, etc), it can be extremely difficult to copy, making it a very safe option.

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6. Small gains

It may not seem like much of an advantage, but being cashless makes it easy to ward off borrowers.Another plus is that you can pay the exact amount without worrying about not having change or getting it back from shopkeepers.

3.2 CHALLENGES TO BE FACED

Drawbacks of digital transactions 1.Higher risk of identity theft "The biggest fear is the risk of identity theft. Since we are culturally not attuned to digital transactions, even well-educated people run the risk of falling into phishing traps," says Nagpal. With the rising incidence of online fraud, the risk of hacking will only grow. Besides, the latest move by the government to remove the two factor authentication process for online transactions up to Rs2,000, will not help. Irrespective of the size of transaction, the absence of this additional layer of security will expose thousands to the risk of identity theft.

Another weak link is the inadequate redressal mechanism. "With the poor redressal system in India, imagine what a poor rickshaw puller will do if he has his Aadhaar ID stolen?" asks financial trainer P.V. Subramanyam."Given the tedious process and poor grievance redressal, people will have no easy recourse if they lose money online," adds Nagpal. There is no stringent legal process to deal with this kind or scale of fraud. Add to it the mass identity theft from banks' or companies' databases and it can turn into a financial nightmare.

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2. Losing phone Since you will be dependent on your phone for all your transactions on the move, losing it can prove to be a double whammy. It can not only make you susceptible to identity theft, but you could also be rendered helpless in the absence of physical cash or any other payment option. Another drawback is that you need to keep your phone constantly charged. If the phone dies on you, you will be stranded, particularly if you are in the middle of an important purchase or an emergency.

3. Difficult for tech- non savvy

India has a low Internet penetration of 34.8%(2016), according to the Internet Live Stats, and only 26.3% of all mobile phone users have a smartphone (2015), as per Statistics figures. Besides the practical difficulty of going digital, "a bigger block is the psychological shift. You are suddenly jumping three generations to the digital medium," says Pai. Adds Subramanyam: "It's a problem for older people, who may find themselves locked out of their accounts if they can't download an app or don't have cash." The digital medium may prove a challenge for the tech unfriendly, who will need time to adapt.

4. Overspending While there is no denying the convenience of card or e-wallets, it could open a spending trap. According to behavioural finance theorists, the pain of parting with money is felt more acutely if you use physical cash. Hence, using cash instead of cards or mobile wallet acts as a natural bulwark for people who find it difficult to control spending. Besides, a high penetration of digital payment system is 18

contingent on the fact that the same amount of cash does not come back into circulation. If it does, people are likely to switch back to using cash as it is a habit that they may find difficult to break.

Few Challenges to Cashless System •

People still rely on the idea of money being ‘physically’ realisable. For some psychological reason, ‘paper’ money is revered more than ‘plastic’ money or ‘digital’ money. Cash keeps a check on people’s spending habits.

•

Anything that’s technological comes with a baggage of risks and security threats. A very high and unbreachable degree of security would be needed as a deterrent to hackers and cyber criminals.

•

There would require some sort of digital awareness to understand the working of a society with no cash. People who have grown up and lived through times when a substitute for cash wasn’t even thought of might face some difficulty in adjusting to a world without currency notes.

•

All the existing cash in the world cannot be removed or deemed ‘abandoned’ at one go. Also, when it comes to money, reassurance is the thing that matters most. For a complete switch-over to the new monetary model, the voluminous amount of cash presently circulating in the market would have to be converted into an equivalent number of ‘digital’ points.

•

Developing economies have an added challenge in the form of high levels of illiteracy among the masses. For example, in India itself, there are large sections of rural population who haven’t seen a bank in their lifetimes, let alone owning a bank account. The only way they recognise money is through currency notes and coins.

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Constrains For Cashless Economy •

On general day, only about 5% of payments happen electronically.

•

India's literacy rate is at 74.04%. Bihar is the least literate state in India, with a literacy of 63.82%.

•

High taxation rate on finished goods, which induce manufacturers to deal in cash for purpose of tax saving.

•

Same case with service sectors.

•

Lack of access to banking.

•

Card swipe machines are costly as 7000Rs to 25000Rs.

•

According to data available with MasterCard and Visa, some 14 lakh merchants across India accept cards.

•

Internet is not accessible for every Indian.

•

Only 34.8% of total population have access to internet.(Even after digital India campaign)

•

Still 88% of Data company’s customers using 2G Network.

•

6 out of 10 transactions fails because of low speed on 2G connectivity.

•

Only 41% Indians Own smartphones.

•

And only 61% of total population own mobile phone.

•

And Only 63% of total population having bank accounts (including Jan-Dhan accounts)

•

Many educated people also afraid to pay via online portal.

•

That’s only reason COD introduced by Flipkart in India.

•

Many internet users are not friendly with e-wallets and mobile banking Apps.

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4. DEMONETIZATION 4.1Cashless economy boosted by Currency Demonetization. •

Aimed at combating corruption and black money, this move also came up with short-term pain and chaos for the working class, small businesses and nearly anybody who deals with cash on a daily basis.

•

This move deeply impacts the working sections of society: drivers, maids, cooks, electricians, plumbers.

•

Anybody who provides services in the informal sector and depends on monthly or bi-monthly cash payments.

•

NO CASH- scenario boosted cashless payments in last two weeks.

4.2 IMPACT ON VENDORS & HAWKERS •

To know the effect of demonetization on vendors and hawkers the personal interview of vendors and hawkers are taken and their results are as follows:

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•

After demonetization weekly sales of hawkers and vendors decreased upto 70%-80%. The main reason for decrease in their sales was shortage of cash as instead of buying from vendors and hawkers people preferred to go to modern retail stores and departmental stores where online payment is acceptable so that they can make transaction without cash.

•

50% of them do not have bank accounts, and 30% of them access bank only in their home town. Whereas only 20% of them have bank account in the city they are living. So it was bit difficult for hawkers and vendor to change demonetized notes of 500 and 1000 Rs. with new currency.

•

Some of them have opened their bank accounts through Jan Dhan Yojana but hardly had they deposited any of their savings in them. They prefer to keep their savings at home so that they can use them at the time of uncertainty. Only 20% of them deposit their savings in bank accounts.

•

It was the said by Manohar lal (one of the street hawker) that before demonetization he was able to save 300 to 350 Rs. per months but after demonetization he was not even able to cover up his and his family basic needs. So whether he should fulfill his basic needs or save money.

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•

Many of them having bank accounts were not able to debit money from their bank accounts and ATMs. They have to leave their work and stand in long queues for taking out cash from banks and ATMs.

•

On this Ram Lal (a street vendor) said that whether he should go to his workplace and earn money or he should stand in long queues and wait for his turn to took out his savings from Atm/bank. He also said that sometime it also happened that he is waiting in queue and as his chance came to withdraws cash, no cash left out in Atm/bank.

•

Demonetization on other side have some positive aspect too as on the other hand some vegetable vendors and small traders have began the use of cashless payments like PayTm, UPI, MobiKwik, freecharge, card swiping etc as people were unable to undertake transaction through cash in the absence of Rs 500 and Rs 1000. It has somewhere promoted PM’s cashless India mission.

•

70% of vendors are availing online payment services to keep their business going.

•

A peddler Ramu Das said that his sales decreased after demonetizations. People use to come with old currency notes which were not acceptable so he started PayTm service in his store

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5. Research objectives: 

The most important objective to study digital/Cashless India project is to know about the digital services which India will going to adapt soon.



To create awareness about the digital services among the young generation.



To make students aware of how they can maintain digital wellness by taking informed decisions and become safe, respectful and responsible users of digital technology.



The objective of research of the cashless India project is to come out with knowledge of innovative ideas and practical solutions to realize Hon’ble Prime Minister Narendra Modi’s vision of a digital India. Prime Minister Modi envisions transforming our nation and creating opportunities for all citizens by harnessing digital technologies.



To empower every citizen with access to digital services, knowledge and information.This Group will come up with policies and best practices from around the world to make this vision of a digital India a reality.

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6. Research Methodology: My research methodology requires gathering relevant data from the specified documents and compiling databases in order to analyze the material and arrive at a more complete understanding. I hope to shed light on the questions through my research.

6.1 Data collection: Primary data: 

Consumer survey on cashless India.

Secondary data: 

Study reports from internet.



Articles in newspaper and internet.

Data collection tools: 

Questionnaire survey.



Internet.



Newspapers.

6.2 Types of research: 

Explanatory research.



Descriptive research.

6.3 Sampling: 

Target population- DELHI city.



Sampling unit- Individual respondent.



Sample size- 100 respondents only.



Sampling method- Random sampling method.

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7.DATA ANALYSIS AND INTERPRETATION Q-1) Are you aware of Digital India Project? a) Yes

70

b) No

12

c) Indifference

18

Yes

No

I've just heard the name

18%

12%

70%

Interpretation: The above pie chart shows the percentage of awareness of ‘Digital India Project’. 

70 out of 100 (i.e.70% ) respondents are aware about the Digital India Project.



12 out of 100 (i.e12% ) respondents have no idea about Digital India Project &



18 out of 100 (i.e.18% ) respondents have just heard the name ‘Digital India Project.’

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Q-2) Do you think making india cashless will uplift the standard of living? a) Yes

93

b) No

7

Yes

No

7%

93%

Interpretation: The above pie chart shows that ‘making India cashless’ will uplift the standard of living or not? 

93 out f 100 (i.e.93%) respondents think that ‘making india cashless’ will uplift the standard of living &



7 out of 100 (i.e.7%) respondents think that ‘making india cashless’ will not able to uplift the standard of living.

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Q-3) Do you want to live in a digitalized city? a) Yes

73

b) No

17

c) Indifference

10

Yes

No

Indiffrence

10% 17%

73%

Interpretation: The above pie chart shows the percentage between the respondents who want to live in a digitalized, who don’t want to live in a digitalized city & indifference. 

73 out of 100 (i.e.73%) respondents want to live in a digitalized city.



17 out of 100 (i.e.17%) respondents don’t want to live in a digitalized city &



10 out of 100 (i.e.10%) respondents are indifference.

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Q-4) According to you, what is the most important thing to convert India digitally? a) Literacy to rural people

20

b) Digital Education

21

c) Both

54

d) Any other

5

Literacy to Rural people

Digital Education

5%

Both

Any Other

20% 21%

54%

Interpretation: The above pie chart shows percentage of the most important thing to convert India digitally 

According to 20 out of 100 (i.e.20%) respondents, literacy to rural people is the most important thing to convert India digitally.



According to 21 out of 100 (i.e.21) respondents, digital education is the most important thing to convert India digitally &



54 out of 100 (i.e.54) respondents think both the things are equally important to convert India digityally.



Whereas, according to 5 out of 100 (i.e.5%) respondents, equal taxation, high investment, digital governance & IT talent are the most important thing to change India digitally.

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Q-5) Do you think rural people can able to adopt the digital change in our country? a) Yes, they can

65

b) I don’t think so

35

a) Yes, they can

b) I don’t think so

35%

65%

Interpretation: The above pie chart shows that rural people can able to adopt the digital changes or not. 

According to 65 out of 100 (i.e.65%) respondents, rural people can able to adopt the digital changes in the country &



35 out of 100 (i.e.35%) respondents think that rural people may not able to adopt the digital changes easily.

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Q-6) According to you, which sector will get developed most after digitalization in India? a) IT Sector

35

b) Educational Sector

18

c) Service Sector

27

d) Rural Sector

20

IT Sector

Educational Sector

Service Sector

Rural Sector

20% 35%

27%

18%

Interpretation: The above pie chart shows the percentage of the sectors which will get developed most after digitalization in India. 

According to 35 out of 100 (i.e.35%) respondents, IT sector will get developed most after digitalization in India.



18 out of 100 (i.e.18%) respondents think Education sector will get developed most after digitalization in India.



27 out of 100 (i.e.27%) respondents think Service sector will get developed most after digitalization in India.



20 out of 100 (i.e.20%) respondents think rural sector will get developed most after digitalization in India. 31

Q-7) After digitalization, which area will become more convenient to you as compare to their current services? a) Reservation b) Banking c) Electricity/Water facilities d) Educational institutes e) Any other

Reservation

Banking

15 11 17 46 11

Electricity/Water facilities

11%

Educational institues

Any Other

15% 11%

17%

46%

Interpretation: The above pie chart shows percentage of the areas which will become more convenient to people as compare to their current services, after digitalization.   

 

According to 15 out of 100 (i.e.15%) respondents, reservation will become more convenient after digitalization. 11 out of 100 (i.e.11%) respondents think banking will become more convenient to them after digitalization. 17 out of 100 (i.e.17%) respondents think electricity/water facilities will become more convenient to them after digitalization, as compare to their current services. 46 out of 100 (i.e.46%) respondents think educational institutes will become more convenient after digitalization, as compare to their current services. Whereas, according to 11 out of 100 (i.e.11%) respondents, all the 4 areas will become equally convenient as compare to their current services.

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Q-8) What is your idea of ‘Digital/cashless India.’? a) Internet connection in every rural area

23

b) Digitalization of all government work

20

c) Free wifi at all public places

41

d) Digital Literacy

11

e) Any other

5

Internet connection in every rural area. Free wifi at all public places Any other

11%

Digitilization of all government work Digital Literacy

5%

23%

20%

41%

Interpretation: The above pie chart shows the percentage of respondent’s idea of ‘Digital India’. 

23 out of 100 (i.e.23%) respondent’s idea of a digital India is internet connection in every rural area.



20 out of 100 (i.e.20%) respondent’s idea of a digital India is digitalization of all government work.



41 out f 100 (i.e.41%) respondent’s idea of a digital India is free wifi at all public places.



11 out f 100 (i.e.11%) respondent’s idea of a digital India is digital literacy.



Whereas, 5 out f 100 (i.e.5%) respondents’ idea of a digital india is all of the above options.

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Q-9) What rating would you give to this ‘Demonetization decision.’? a) Excellent

24

b) Good

63

c) Fair

9

d) Poor

4

Excellent

Good

Fair

Poor

4%

9%

24%

63%

Interpretation: The above pie chart shows the rating of ‘Digital India Project.’ 

24 out of 100 (i.e.24%) respondents rating for ‘Demonetization decision’ is Excellent.



63 out of 100 (i.e. 63%) respondents rating for ‘Demonetization decision is Good.



9 out of 100 (i.e.9%) respondents rating for ‘Demonetization decision is Fair.



4 out of 100 (i.e. 4%) respondents rating for Demonetization decision is Poor.

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Q-10) Do you think ‘Demonetisation’ will get success? a) Agree

62

b) Disagree

8

c) Indeiffrence

30

Agree

Disagree

Indiffence

30%

62% 8%

Interpretation: The above pie chart shows success of ‘Digital India Project’ according to respondents. 

62 out of 100(i.e. 62% ) respondents agree that ‘Demonetization’ will be successful.



8 out of 100(i.e. 8% respondents disagree about the success of ‘Demonetization.’



Remaining 30 out of 100(i.e. 30% respondents are indifference about the success of ‘Demonetization”’ 35

Q-11)Do you have a Jan Dhan account or a Private Bank account?

a) Yes

90

b) no

10

10%

90%

yes

no

Interpretation: The above pie chart shows that most of the people has Jan dhan account or private bank account. 

90 out of 100 (i.e.90%) respondents has Jan dhan account or private bank account,



10 out of 100 (i.e.10%) respondents doesn’t have Jan dhan account or private bank account.

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Q-12)Do you have access to internet connection in your mobile phone? a) yes

80

b) no

20

20%

80%

YES

NO

Interpretation: The above pie chart shows that most of the people has internet connection in their mobile phones. 

80 out of 100 (i.e.80%) respondents has internet connection in their mobile phones



20 out of 100 (i.e.20%) respondents doesn’t have internet connection in their mobile phones

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Q-13)Of the various modes like UPI, PAYTM ,POS machine , SBI buddy etc which one would you likely opt for? a) UPI

10

b) PAYTM

45

c) POS

35

d) others

10

10%

10%

35% 45%

UPI

PAYTM

POS

others

Interpretation: The above pie chart shows preference for making payment digitally. 

10 out of 100 (i.e.10%) respondents prefer UPI for making payment digitally



45 out of 100 (i.e. 45%) respondents prefer PAYTM for making payment digitally



35 out of 100 (i.e.35%) respondents prefer POS for making payment digitally



10 out of 100 (i.e. 10%) respondents prefer others means for making payment digitally

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8. FINDINGS & RECOMMENDATION

8.1 Summary of finding: 1. Most of the people are aware of Digital India Project. 2. Making india cashless will going to uplift the standard of living. 3. People want to live in a city where every work is digitalized. 4. Literacy to every other rural people and providing digital education is very important thing to convert India Digitally. 5. Rural people can able to adopt the digital changes only if they will be given proper guidance of digital literacy & knowledge. 6. IT sector will get employment opportunity because this project requires people with fresh IT skills. There is going to be vast change in development in service sector as well as rural sector. 7. After digitalization, educational institutes will become more convenient as compare to their current services. 8. Availability of free Wi-Fi at all public places is the idea of Digital India according to most of the people. 9. According to most of the people, DEMONETIZATION has been rated ‘good.’ 10. According to people, Demonezation will get great success. 11. Most of the people have Jan dhan account or a bank account 12. Most of the people have access to internet connection in their mobile phones 13. Most of the people prefer PAYTM to make payments digitally.

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8.2 Recommendation: 

Indian government need to start providing digital literacy to every other citizen.



To create impact of Digital India to be realized, we have to use technology to solve problems faced by Indians and for that we need a very strong culture of grounds-up frugal innovation in IT.



Our recommendation to the government would be to set up PPP forums in each of these segments to invite industry to participate in areas where they have the domain expertise and interest.



The government has set the stage with a strong vision and an equally strong show of will to make it happen. What we need now is for them to focus on setting the right policy frameworks and processes that make it easy for industry to do business in India and encourage us to participate in India’s journey towards becoming a digital India.



What is needed now is an unprecedented focus and the will to make it happen across both government and industry.



The one area where this kind of a model is needed with a high level of urgency is in developing the culture of innovation in India.



The government must encourage open global standards that will enable India to benefit from the best technology worldwide.



The government should also focus on sustainable development and basic facilities of rural area before providing them digital services. These two have to go hand-in-hand.



The numbers are mind boggling, but they can be achieved, especially as rapid pace of innovation is increasingly making technology more favorable for mass scale adoption, which is a must for the successful realization of Digital India.



It is recommended that every citizen must realize that such an important and enormous vision cannot be the government’s job alone. We have to be an equal partner in this journey.

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Limitation of Research:

The present study is confined to a minimal sample size and may not reflect the opinion or response of the entire population in general. There was only 100 respondents taken for the survey. The results of our study are entirely confined to the responses of the Delhi citizens and might deviate in terms of actual population as a whole recommendation given after the study are entirely dependent on the survey and the secondary & primary analysis done in the report.

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9. CONCLUSION

As the country moves towards a cashless environment after demonetisation, the initial awe and confusion have given way to a flurry of concerns. Will the emphasis on online transactions provide convenience and tangible benefits or just add to stress and additional charges? To incentivise the move towards a cashless economy, the government has come up with a rash of discounts and freebies on digital transactions. But will these be substantial enough and, along with other benefits, counter the higher risk of identity theft once the currency notes are back in circulation? The government is working at various levels to reduce the dependence on cashEven as ordinary citizens queue up for cash and economists are busy estimating the extent to which economic growth will be hit because of the ongoing drive to replace high-value banknotes, there has been a lot of discussion on whether the government can use the current situation to push India towards a cashless future. In his radio address on Sunday, Prime Minister NarendraModi once again pitched for creating a cashless society. Reducing Indian economy’s dependence on cash is desirable for a variety of reasons. India has one of the highest cash to gross domestic product ratios in the word, and lubricating economic activity with paper has costs. According to a 2014 study by Tufts University, The Cost Of Cash In India, cash operations cost the Reserve Bank of India (RBI) and commercial banks about Rs21,000 crore annually. Also, a shift away from cash will make it more difficult for tax evaders to hide their income, a substantial benefit in a country that is fiscally constrained. To be sure, the government on its part is working at various levels to reduce the dependence on cash. Opening bank accounts for the unbanked under the and adoption of direct benefit transfer is part of the overall idea to reduce usage of cash and increase transparency.

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RBI has also issued licences to open new-age small finance banks and payments banks which are expected to give a push to financial inclusion and bring innovative banking solutions. Things are also falling in place in terms of technology for India. The recently launched Unified Payments Interface by National Payments Corporation of India makes digital transactions as simple as sending a text message. What else needs to be done? 

Open Bank accounts and ensure they are operationalized.



Abolishment of government fees on credit card transactions; reduction of interchange fee on card transactions; increase in taxes on ATM withdrawals.



Tax rebates for consumers and for merchants who adopt electronic payments.



Making Electronic payment infrastructure completely safe and secure so that incidents of Cyber crimes could be minimized and people develop faith in electronic payment system.



Create a culture of saving and faith in financial system among the rural poor.



The Reserve Bank of India too will have to come to terms with a few issues, from figuring out what digital payments across borders means for its capital controls to how the new modes of payment affect key monetary variables such as the velocity of money.



RBI will also have to shed some of its conservatism, part of which is because it has often seen itself as the protector of banking interests rather than overall financial development.



The regulators also need to keep a sharp eye on any potential restrictive practices that banks may indulge in to maintain their current dominance over the lucrative payments business.

Though it will take time for moving towards a complete cashless economy, efforts should be made to convert urban areas as cashless areas. As 70% of India’s GDP comes from urban areas if government can convert that into cashless it will be a

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huge gain. Therefore different trajectories need to be planned for migration to cashless for those having bank account and for those not having. Another big hurdle is unachieved targets for digital India. Mobile internet penetration is crucial into deeper pockets since PoS works over mobile internet connections. Earlier banks used to charge money on card-based transactions which has now been pointed out as a hurdle. Also, the low literacy rates in rural areas along with lack of internet access or even basic utilities in many places, it becomes very difficult for people to adopt the habit for digital transactions. Cash is definitive in nature and cash exchange carries with it the writ of the country to even the most remote locations. Informal sector is the largest employer in India and runs on cash primarily. It also means that cash transactions on their own are not the generators of black wealth. It is a highly advanced and dynamic manner of doing business refined over centuries. Already there are reports that in the slow demonetisation process, there are people like farmers and traders that are forced to transact with old currency. Massive amount of currency has been sucked out of the system and lack of assured transaction systems for rural pockets and informal sector will likely add to the woes. On realistic estimates, it seems the government will take at least 2-3 quarters to restore favourable liquidity in the system. Meanwhile, the informal sector remains under threat of moving to a parallel black economy for coming weeks. People in urban areas are largely troubled as apart from the cash crunch, the budgets and finances of households are hit. Merchants insist on minimum amount transactions for PoS sale or online payments. Further, they add various taxes and levies, delivery charges etc. Articles bought online may be sold expensive with low quality but as there is a cash crunch people are forced to buy them. Small transactions and daily expenses are massively hit and plastic is no substitute for planned expenditure using cash.

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10. BIBLIOGRAPHY

    

www.livemint.com/Opinion/uzv0.html Cashlessindia.gov.in Cashless.gov.in/digital_payment_methods.html www.dailyo.in.business/demonetisation-digital-india businesstoday.in/opinion

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11. ANNEXURE 11.1Questionnaire for “Cashless\Digital India” I Harsh Gupta student of ZAKIR HUSAIN DELHI COLLEGE would like to take the survey for my project on ‘Cashless\Digital India’. Thank you for taking the time and effort to respond to this questionnaire. Please give your most candid and thorough response to the questions below. Rest assured that the information you share here is confidential.

Name: Age: Gender: Occupation: If student, please mention your stream:

(Note: Please mark the suitable option according to you.)

Q-1) Are you aware of Digital India Project? a) Yes b) No c) I’ve just heard the name. Q-2) Do you think making india cashless will uplift the standard of living? a) Yes b) No

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Q-3) Do you want to live in a digitalized city? a) Yes b) No c) Indifference.

Q-4) According to you, what is the most important thing to convert India digitally? a) Literacy to rural people. b) Digital education. c) Both. (If any other pleases mention): Q-5) Do you think rural people can able to adopt the digital change in our country? a) Yes they can. b) I don’t think so. Q-6) According to you, which sector will get developed most after digitalization in India? a) IT sector. b) Educational sector. c) Service sector. d) Rural sector. Q-7) After digitalization, which area will become more convenient to you as compare to their current services. a) Reservation. b) Banking. c) Electricity/Water facilities. d) Educational institute. (If any other pleases mention):

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Q-8) What is your idea of ‘Cashless\Digital India.’? a) Internet connection in every rural area. b) Digitalization of all government work. c) Free Wifi at all public places. d) Digital literacy. (If any other please mention): Q-9) What rating would you give to this “Demonetization decision”’? a) Excellent. b) Good. c) Fair. d) Poor. Q-10) Do you think ‘Demonetization’ will get success? a) Agree. b) Disagree. c) Indifference Q-11) Do you have a Jan Dhan account or a Private Bank account? a) Yes b) No Q-12) Do you have access to internet connection in your mobile phone? a) Yes b) No

Q-13)Of the various modes like UPI, PAYTM ,POS machine , SBI buddy etc which one would you likely opt for? a) UPI b) PAYTM c) POS machine d) others

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