This document presents a study on the challenges and opportunities of transitioning to a cashless economy in Guwahati city, India. The study examined the benefits of going cashless such as reduced paper transactions, tax avoidance, and lower theft risk. Challenges like digital illiteracy, network issues, and online frauds were also highlighted. Primary data was collected through questionnaires while secondary data came from websites, journals, and newspapers. The study found an association between education level and attitude towards cashless payments. While debit/ATM card usage and e-commerce increased, customers remained wary of sharing card details online. Digital literacy programs, rural infrastructure expansion, and awareness campaigns were suggested to further the cashless economy.

1. CASH TO CASHLESS ECONOMY:
Challenges And Opportunities
with special reference to Guwahati city
Presented by:
Saswati Das

2. Implications of Going Cashless
• Least paper transactions will be involved
• Substituted by more digital transactions with the help of
- Internet banking,
-Digital wallets,
-PoS,
-Credit cards,
-Debit cards, etc.

3. OBJECTIVES OF THE STUDY
To examine the benefits and highlight the challenges of
Cashless Economy.
To study the impact of demographic factors of the respondents
towards the choice of mode of payments.

4. RESEARCH METHODOLOGY
• RESEARCH DESIGN: Descriptive and Analytical
• PRIMARY DATA: Through Questionnaire and Schedule
• SECONDARY DATA: Websites, journals, newspapers, etc

5. MODES OF PAYMENTS
INTERNET BANKING
UNIFIED PAYMENTS
INTERFACE (UPI)
BANKING CARDS

6. AADHAR ENABLED PAYMENT SYSTEM
MOBILE BANKING

7. MOBILE WALLET
POINT OF SALE

8. Rationale Of Cashless Economy
CASH
ECONOMY
CASH-LESS
ECONOMY
CASHLESS
ECONOMY
PHASE OF DEVELOPMENT IN CASHLESS ECONOMY

9. BENEFITS
OF CASHLESS
REDUCE THE
CIRCULATION OF
BLACK MONEY
Less Maintenance costs
Convenient and lower
risk involved
AVOIDANCE OF TAX
EVASION
TRANSPARENT &
ACCOUNTABLE
LOWER RISK OF THEFT
Faster and prompt
settlements

10. CHALLENGES
DIGITAL
LITERACY
NETWORK
CONNECTIVITY
ISSUES
ONLINE
FRAUDS
CASH
DEPENDENCE
LESS NUMBER
OF BANKS IN
RURAL AREAS

11. TESTING OF HYPOTHESIS
Level of
Education
Experience on Likert scale
Very
Good
Good Average Not so
Good
Poor Total
Highly-Educated 19 52 04 02 00 77
Less-Educated 02 06 18 10 05 41
Total 21 58 22 12 05 118
H0: There is no association between education level of people and their attitude towards cashless
economy.
H1: There is association between education level of people and their attitude towards cashless
economy.
Table1: Representation of the attitude of the respondents on the basis of level of
education

12. O(Observed
Frequency)
E (Expected
Frequency)
O-E (O-E)2 (O-E)2/E
19 13.70 5.30 28.09 2.05
52 37.85 14.15 200.22 5.29
04 14.36 -1036 107.33 7.47
02 7.83 -5.83 33.99 4.34
00 3.26 -3.26 10.63 3.26
02 7.30 -5.30 28.09 3.85
06 20.15 14.15 200.22 9.94
18 7.64 10.36 107.33 14.05
10 4.17 5.83 33.99 8.15
05 1.74 3.26 10.63 6.11
Total 64.51Table 2: Computation of Chi-Square Value
χ 2
= ∑ (O-E)2
/ E = 64.51
Degrees of freedom = (r-1)*(c-1) = (2-1)*(5-1) = 1*4 = 4 The table value of χ2
at 5 per cent
level for 4 degrees of freedom is 9.48. The calculated value of χ2
is more than the tabulated
value, so we may reject the null hypothesis and conclude that there is association between
education level of people and their attitude towards cashless economy, i.e. both these factors
are dependent on each other.

13. FINDINGS
• Association between education level of people and their attitude towards cashless economy.
• Spending through debit or ATM cards, increased by 45% year-on-year.
• More use of e-commerce sites.
• However, customers do not feel safe to share their cards CCV / PIN number.
• Mobile-Wallets and Mobile Apps are increasingly being accepted by people.
• The scope of hiding income and tax evasion has been slackened because of lesser availability of hard cash.

14. SUGGESTIONS
• DIGITAL LITERACY PROGRAMS.
• PROPER INFRASTRUCTURE IN REMOTE AREAS.
• AWARENESS ABOUT THE BENEFITS OF THE CASHLESS
TRANSACTIONS.
• PROPER ENFORCEMENT OF THE POLICY.

15. CONCLUSION
• This will eventually make the system more ACCOUNTABLE, TRANSPARENT
AND EFFICIENT.
• GREATER ACCEPTANCE of the payments industry in India, as all the
participants and regulatory authorities has united together to ACHIEVE A “LESS-
CASH DEPENDENT” AND EVENTUALLY “CASHLESS” SOCIETY.

16. THANK YOU