It is good that our honorable prime minister has shown the greatness to accept the responsibility if the decision of demonetization turns out to be a failure. It appears that government has finally understood that it was never to be a fight against Black money and it is evident from the steps of the government in recent days. Its narrative has changed from the fight against black money to go cashless. People will find the loopholes which would have been used to turn black in to white. Nevertheless, it is going to help Indian economy although in a very smaller way.
It is not going to be the case that black money is not going to generated again. It is bound to happen again and again, since its roots are in our income tax laws and people's tendency not to fill income tax. The rules need to be given a thought, in order to get more people towards filling income tax, happily. More than this, the ways of scraping the income tax system have been suggested by many economists. In fact, Nitin Gadkari had once said it during the election campaigning, that they will bring in plans to collect the tax indirectly.
India becoming a cashless economy, indeed is going to be the future and various schemes have been announced to support such moves. People have started going digital in many of their daily affairs, as it also saves their time and efforts. However, it is going to be a long walk for the people, as poverty, illiteracy and security are going to be the main obstacles. We have to educate them before asking them to go for cashless. Only 70 crore people, from the total population of 125 crore, have a bank account. Of these, 24 crore have been opened as Jan Dhan accounts. Thus majority of our daily affairs are done through cash, especially in the villages where number of small-scale vendors are huge. Digital security is a huge concern, as we do not have enough measures to be implemented for safe transactions. For instance, scraping over 32000 debit/credit cards in a day in the last month indicates the needs to have additional measure to keep online accounts secure. Overall, cashless economy is going to be a huge challenge.

