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some obvious questions about the validity of cash in Indian economy. The government has also announced incentives like reduction in service charge and other levies on debit/credit card transactions. And by keeping the population of India in mind it becomes clear that the POS terminals available at present are not sufficient to make India a cash transaction free country. Enhancing Online Transactions, demonetization of the currency notes will have positive effects on Indian economy when it comes to pushing it in cashless direction.
There will be three major impacts of this announcement of demonetization. Now this limit will be extended further. Earlier, the income tax regulations had imposed a rule of scrutiny for transactions above.2 lakh through credit gilman scholarship essays cards in a year and the customers were reluctant to show electronic payments. India may need to think about doing so too. But it is quite obvious that cards alone cant turn the economy into a cashless one. Internet, at present only 13 out of every 100 Indians in rural areas actually have internet access and the quality of internet is not up to the standard. Of course, the depletion in cash has pushed digital and e-transactions to the forefront.