2025, Vol. 8, Issue 2

author(s)
Jyotirmoy Koley

abstract
India's transition towards a cashless economy has significantly accelerated in recent years, driven by technological advancements and policy initiatives. However, this shift presents distinct challenges and opportunities for a nation as diverse and complex as India is. This study critically examines the challenges and future prospects of India's cashless economy through a comprehensive review of the existing literature and data. The findings indicate that a substantial segment of the population continues to rely heavily on cash, particularly in rural areas, due to inadequate digital infrastructure, limited financial literacy, and socioeconomic factors such as gender disparity and income inequality. Furthermore, concerns regarding privacy, security, and lack of trust in digital systems persist. Technological readiness and the digital divide also present obstacles to the adoption of cashless transactions. Despite these challenges, the Indian government has introduced various initiatives to promote a cashless economy, such as the Central Bank Digital Currency (CBDC), digital rupee (e?), and Unified Payments Interface (UPI). The study concludes that the future of India's cashless economy appears promising with an appropriate combination of policy support, technological advancements, and societal adaptation. Addressing socioeconomic, technical, and infrastructural barriers can foster a more inclusive digital economy in the Philippines. This study recommends the continued development of digital infrastructure, financial literacy programs, and collaboration between the government, regulators, banks, and fintech companies to ensure a successful transition to a cashless economy in India.