Journal Press India®

From Cash to Cashless Economy: Catalytic Agent for Financial Inclusion?

Vol 4, Issue 1, January - June 2017 | Pages: 40-57 | Research Paper  

 
Article has been added to the cart.View Cart (0)
https://doi.org/10.17492/mudra.v4i01.9778


Author Details ( * ) denotes Corresponding author

1. * Megha Jain, Research Scholar, Faculty of Management Studies, University of Delhi, Delhi, India (megha.j_phd15@fms.edu)
2. Aishwarya Nagpal, Research Scholar, Faculty of Management Studies, University of Delhi, Delhi, India (aishwarya.n_phd15@fms.edu)

The announcement by Prime Minister Narendra Modi on July 1, 2015 towards “making India Digital” was meant to pave Indian economy’s future for larger proposed changes in terms of financial literacy. The drive intended to associate pastoral areas with high-speed internet so as to improve the digital awareness and usage. Thereafter, the catalytic thrust from demonetisation further accelerated migration towards digital payments in November and December 2016. However, ease in availability of cash by gradual remonetisation jolted the pace of growth of digitalisation in February 2017. In this context, the future outlook of Indian economy guarantees fast-track growth that carries preliminary pre-requisite for the people to be financial literate, to begin with. Thus, ‘Digital financial literacy’ shall require more strengthening. This paper spots the rationale and sequencing of the targeted drives to facilitate building on the ‘financial literacy infrastructure’ principally to benchmark future India. The key policy implication of the current study includes the solution to the dilemma and apt targeting of the various programmes for financial stability and sustainability through ‘Digitally Literate Future’.

Keywords

Indian economy; Financial inclusion; Digitisation; Demonetisation; Digital financial literacy

  1. Aggarwal, S., & Klapper, L. (2013). Designing government policies to expand financial inclusion: Evidence from around the world. Retrieved from http://www.isb.edu/faculty/shilpa_aggarwal/files/shilpa-aggarwal-leora-klapper.pdf.
  2. Aker, J. C., Boumnijel, R., McClelland, A., & Tierney, N. (2014). Payment mechanisms and anti-poverty programs: Evidence from a mobile money cash transfer experiment in Nigera. Center for Global Development Working Paper 268.
  3. Banerjee, A., Karlan, D., & Zinman, J. (2015). Six randomized evaluations of microcredit: Introduction and further steps. American Economic Journal: Applied Economics, 7(1), 1-21.
  4. Banerjee, A., Duflo, E., Imbert, C., Mathew, S. & Pande, R. (2016). Can e-governance reduce capture of public programs? Experimental evidence from a financial reform in India’s Employment Guarantee. Retrieved from https://economics.mit.edu/files/10557.
  5. Blumenstock, J. E., Callen, M., Ghani, T., & Koepke, L. (2015). Promises and pitfalls of mobile money in Afghanistan: Evidence from a randomized control trial. Proceedings of the Seventh International Conference on Information and Communication Technologies and Development, Singapore-May 15-18, 2015.
  6. CRISIL. (2013). Inclusix Financial Inclusion Index. Vol. 1, June.
  7. Drexler, A., Fischer, G. & Scholar, A. S. (2014). Keeping it simple: Financial literacy and rules of thumb. American Economic Journal: Applied Economics 6(2): 1-31.
  8. Gine, X., C. Cuellar, M. & Mazer, R. K. (2014). Financial (dis)information: Evidence from an audit study in Mexico. World Bank Policy Research Working Paper 6902.
  9. Imbert, C. & Papp, J. (2015). Labor market effects of social programs: Evidence from India’s employment guarantee. American Economic Journal: Applied Economics, 7(2), 233–263.
  10. Jack, W., & Suri, T. (2014). Risk sharing and transactions costs: Evidence from Kenya's mobile money revolution. The American Economic Review, 104(1), 183-223.
  11. Jack, W., Ray, A., & Suri, T. (2013). Transaction networks: Evidence from mobile money in Kenya. The American Economic Review, 103(3), 356-361.
  12. Jani, J. & Tere, G. (2015). Digital India: A need of hours”, International journal of Advanced Research in Computer Sciences and Software Engineering, 5(8), 318-319.
  13. Kamath, R. (2008). Ramanagaram financial diaries: Loan repayments and cash patterns of the urban slums. IIMB Working paper 268.
  14. Karlan, D. S., & Morduch, J. (2010). Access to finance. In D. Rodrik and M. R. Rosenzweig (Eds.) Handbook of Development Economics, Volume 5, pp. 4704-4784, Amsterdam: North Holland.
  15. Kumar, N. (2007). Financial inclusion and its determinants: Evidence from India. Journal of Financial Economic Policy, 5(1), 4-19.
  16. Lusardi, A., & Mitchell, O. S. (2014). The economic importance of financial literacy: Theory and evidence. Journal of Economic Literature, 52(1), 5-44.
  17. Mas, I. & O. Morawczynski (2009). Designing Mobile Money Services: Lessons from M-PESA. Innovations, Spring, 77-91.
  18. Medhi, I., Gautama, S.N.N. & Toyama, K. (2009). A comparison of mobile money-transfer UIs for non-literate and semi-literate users. Proceedings of the SIGCHI Conference on Human Factors in Computing Systems, pp. 1741-1750.
  19. Miller, M., Reichelstein, J., Salas, C., & Zia, B. (2014). Can You Help Someone Become Financially Capable? A Meta-Analysis of the Literature. Policy Research working paper no. WPS 6745. Washington, DC: World Bank Group.
  20. Morgan, P. J., & Pontines, V. (2014). Financial stability and financial inclusion. Asian Development Bank Working Paper Series No. 488.
  21. Muralidharan, K., Niehaus, P. & Sukhtankar, S. (2016). Building state capacity: Evidence from biometric smartcards in India. American Economic Review, 106(10), 2895-2929.
  22. Ravi, S & Gakhar, S. (2015). Advancing Financial Inclusion in India beyond the Jan-Dhan Yojana. Brookings India IMPACT Series. Brookings Institution India Center.
  23. Sharma, A. & Kukreja, S. (2013). An analytical study: relevance of financial inclusion for developing nations. International Journal of Engineering and Science, 2(6), 15-20.
  24. Tamilrasu, A. (2014). Role of banking sectors on financial inclusion development in India. International Interdisciplinary Research Journal, 2(2), 39-45.
Abstract Views: 216
PDF Views: 94

Advanced Search

News/Events

Institute of Managem...

Deccan Education Society Institute of Management Development and Re...

S.B. Patil Institute...

Pimpri Chinchwad Education Trust's S.B. Patil Institute of Mana...

D. Y. Patil IMCAM, A...

D. Y. Patil Institute of Master of Computer Applications & Managem...

Vignana Jyothi Insti...

Vignana Jyothi Institute of Management International Conference on ...

Department of Commer...

Department of Commerce, Faculty of Commerce & Business, University...

Birla Institute of M...

Birla Institute of Management Technology (BIMTECH) 3rd Pritam Singh M...

OP Jindal University...

OP Jindal University, India 4th International Conference on  ...

Department of MBA, N...

Department of MBA, Narayana Engineering College Nellore International...

Vignana Jyothi Insti...

Vignana Jyothi Institute of Management Conference Proceedings,...

Online Proceedings R...

Conference Proceedings, March 2023 ISBN: 978-81-956810-6-8 ...

By continuing to use this website, you consent to the use of cookies in accordance with our Cookie Policy.