Virtually There

One of the government’s main justifications for demonetisation was to induce a national shift toward digital transactions (Banking on E-Cash). This is possible only when the country has high internet speeds and robust cyber security. India lags behind Sri Lanka and Bangladesh in terms of download speeds and tops the world in terms of cyber crimes. Many Indians are wary of digital transactions for fear of being hacked, or theft of personal data. The government needs to frame effective laws to protect online consumers if it wishes to realise its goal. Otherwise, the idea of a cashless economy will prove to be the “foolish utopia” described by former finance minister P. Chidambaram. Although India’s young population is willing to embrace new technology, poor infrastructure and a lack of protection from cyber crimes means that demanding an overnight switch to cashless transactions is equivalent to throwing people into deep water and expecting them to learn to swim. Some may do so, but others will sink. It would have been better to bring in this change gradually—to give people time to adapt to the new system before adopting it. The government’s initiatives toward a cashless India could be seen as a progressive step, provided every citizen can make use of such facilities. Cashless transactions are easy and convenient. But it is a herculean task for the government to bring all citizens under the ‘digital umbrella’. The grim reality is that millions in India do not have access to electricity or the internet, and are illiterate. The idea that possessing a mobile phone is enough to go cashless is naive. The government itself seems uncertain of how to ensure that millions of underprivileged folks gain access to such modern ways of doing things. The shift to a digital economy will be worth nothing unless every citizen can enjoy the fruits of development. The central government has unnecessarily forced cashless transactions on consumers, who will, in all likelihood, be cheated because of the malpractices rampant in the system. If the government were sincere about developing a cashless economy, it should have concentrated on eliminating cash in the wholesale trade rather than promoting the new industry of mobile payments. However, to clamp down on black money holders, the plan to print more Rs 2,000 notes should be scrapped, and there should be no more Rs 1,000 notes either. It is also a matter of concern—one that should be probed—that while

common folk waste hours in long ATM queues, there is absolutely no shortage of new currency in wholesale markets! SUBHASH CHANDRA AGRAWAL, Delhi