Government of India, in November, 2016, announced to demonetize Rs. 500 and Rs. 1,000 denomination notes from the economy. Government issued currency notes of denomination Rs. 2000 and Rs. 500. In such a situation, traders and general public had some inconvenience. Government persuaded the people to go cashless. In such a large democracy and economy, it takes time in printing the currency and to manage it. It is also a costly affair. In such a situation, going cashless seemed to be a better alternative.
Many private companies provide cashback offers on casheless transactions. Government of India is also giving special discounts to promote cashless transactions and to sensitise the public about its benefits. Government, after demonetization, had spent Rs. 94 crore on advertisement to promote digital transactions and to popularize cashless transactions. Therefore, digital transaction is a simple and convenient method and also a necessary aid for a rapidly growing economy such as India.
