An early stage of cashless economy dates back to the ancient time, were Bater system was followed by the government. Over the period of time the Government changed its policies and cash based economy came into existence. To combat black money, Corruption, Tax Avoidance, on 8th November 2016-the Government took the decision of modern cashless economy or digital economy through demonetization. Here the circulation of physical currency will be minimum and the citizen will be benefited a lot. Our country should adopt cashless economy to get rapid progress in worldwide because if a country has strong economic system then it will always progress in each and every field. If we follow cashless economy the time and money will be reduced, use of technology will be done properly, corruption, black money etc can be controlled and an inclusive society will be formed in future. India is trying to improve its digital economy by simpler technology use, advance digital payment system, increase merchant banking, payment through UPI’s etc. Digitalizing has a wider impact on economy. No economy can adopt cashless completely, so government has pushed the digital theme in every area. Cashless economy means purchasing; selling and trading through digital mode i-e cards, wallet, paytm, phone pe etc. in place of paper currency. Through digitalizing all records are traced and maintained correctly to avoid any fraud. The RBI has issued framework on payment system aiming at less cash economy.
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Keywords: Digitization, Cashless Economy, Electronic Payment System, Present Scenario.
