There are people who are against Cashless economy so my motive is not to provide food for their thoughts. I am very much support of Cashless economy and I know more advantages than disadvantages of it but being sensible & educated Indian, I feel it’s my responsibility to put forward both the sides of the coin so people of India can have a clear picture and can then decide, per cent ,is it good or bad for us.

According to me, there are five hurdles to Modi’s ambition of converting India to a cashless economy:

1. x342 million internet users percent, 27 of Indians: Earlier this year, India surpassed the US to become the country with the second-largest number of Internet users, according to this June 2016 report by investment firm Kleiner Perkins Caufield & Byers. There are 342 million internet subscribers (an Internet “penetration rate” of 27 per cent) in India, data from Telecom Regulatory Authority of India (TRAI) reveal.

The global median is 67 per cent, IndiaSpend reported in March. India lags most major economies and performs worse than Nigeria, Kenya, Ghana and Indonesia, among other countries, the data reveal.

Put another way, 73 per cent of Indians, or 912 million, do not have Internet access.

Of those who use the Internet, no more than 13 per cent live in rural India (or 108 million of 833 million who live in rural areas), which has been worst hit by the November 8, invalidation of Rs 500 and Rs 1,000 notes that made up 86 per cent of notes in circulation.

In urban India, 58 per cent of people access the Internet.

2. indian-smartphone-usersSmartphone usage rate among adults 17 per cent: For a majority of banking applications, a smartphone is a prerequisite. India is Asia-Pacific’s fastest-growing smartphone market, but no more than 17 per cent of Indian adults own a smartphone, according to a survey by Pew Research. Only seven per cent of adults in low-income families own a smartphone; the figure for wealthier families is 22 per cent.

3. 551788681.02 billion mobile subscriptions, but only 15 per cent have broadband internet: India had 1.02 billion wireless subscriptions, but after scrubbing the data of inactive and duplicate connections, India has 930 million (90 per cent) active subscribers, according to a TRAI report. Of these, 154 million subscribers (15 per cent) have broadband connections (3G+4G).

4. speedAverage page load time on mobile 5.5 seconds, China 2.6 seconds: The average time to load a page on a mobile phone is 5.5 seconds in India, compared to 2.6 seconds in China, 4.5 in Sri Lanka, 4.9 in Bangladesh and 5.8 in Pakistan, according to the “State of the internet Q1 2016” report by Akamai Technologies, a global content delivery network services provider. Israel has the fastest load time at 1.3 seconds.

Mobile Internet speeds will make users less likely to use their phones for banking transactions, with Oracle Maxymiser, a website optimisation tool by Oracle, a US multinational, reporting a two-second threshold before users stop an online transaction — although 68 per cent of respondents reported they would not wait six seconds for pages or images to load on a bank’s website or mobile site.

5. maxresdefault-3856 PoS machines per million Indians: There were 1.46 million PoS machines in use in India — that is, 856 machines per million people — according to an August 2016 Reserve Bank of India report. In 2015, Brazil — with a population 84 per cent lower than India — had nearly 39 times as many machines (32,995), according to a report by Ernst & Young, a consultancy. The PoS machine rate was 4,000 per million people in China and Russia.

This article will be followed by another article stating all the advantages of cash less economy, so please check out that too.

JAI HIND !!! & to be continued……