After demonetisation decision on 8th November by Indian government Prime Minister Narendra Modi Pushing ‘Cashless India’ message. Day by day his government announcing different schemes to spread the message in people. But do you really think that India is ready for such a big transformation in a very short time? Is our system is ready for this? Are people of India is ready for this?

There are many challenges in Narendra Modi’s ‘Cashless India’ dream. Do have a look on some of the big challenges: 

1. Less Smartphone users

By having a Smartphone you can do any transaction online. The smartphone is the easiest way to go cashless but in India, there are very fewer people who use Smartphone. As India is a developing country and people are slowly changing their lifestyle. Due to poorness buying a Smartphone is still a dream for many.  

2. Cyber Security

Cyber security is a very important issue in India. India’s current Information technology law is not so much effective. If we want to go cashless than government should do for this, safety from ATM card cloning, Bank accounts hacking, and payment gateway problems are very necessary.   

3. Network Connectivity

Where the world is running at 5G speed we are still on 2G and 3G. India is at 113th rank in the world on Internet speed. For a cashless country where all payments will be online good network connectivity is the must. Now India’s average internet speed is 3.5 MBPS.

4. Internet charges

While internet speed is very slow in India but internet charges are very high. Middle-class people are the biggest consumer share of the internet in India and for those, it is very tough to sustain with high charges. Most people turn off their data pack while they are not using it. 

5. Charges for Online payment

From a vendor to buyer everyone has to pay tax while doing online payment in India. A vendor has to pay 650 rupees per month for having a swipe machine on his shop same with the common people they have to pay some charge while swiping from Debit/credit cards. If the government wants a cashless India than government should finish all charges from online payment to motivate people.


Our Banks are still not ready for the being digital; banks in rural areas are still facing server and electricity problem. Lack of digital knowledge, fewer bank accounts, minimum infrastructure can be others challenges in ‘Cashless India’.


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Published by Mohit Grover