On 8 November 2016 the Prime Minister of India announced demonetisation of rupees 1000 and rupees 500 notes. This came as a shock and surprise to many citizens of India. The move was welcomed by many and also criticised by many people.
Now after 10 days of the implementation of cash Ban, debates are going on to move India from a cash based economy to a cashless economy.
A very big question is can India become a cashless economy and adopt digital payments and mobile wallets as a mode of transactions making a tectonic shift from cash which has become backbone of Indian economy.
This cannot be denied that Indians would Happily love to adopt this concept. The praise PM Modi is getting from people at large is a sign that people wish to change way they transact.
But this gives rise to another important question, Can we really do it?
I would like to go back into the history when there was Patel agitation going on in Gujarat. The government of Gujarat had suddenly imposed Ban on mobile Internet and SMS facilities. During this period people using plastic money and digital money faced lots of difficulties and were handicapped in making online transactions and because of non functional SMS facilities the payments could not be processed even if someone got access to Broadband Internet Services.
Think of a situation if we decide to move to a cashless economy and adopt digital payment methods including mobile wallets and plastic money, in such cases any such Ban imposed by any Government will bring more difficulties to people. In absence of cash in the economy people will become handicapped even to do day to day economic activities.
Internet access will first have to be made a fundamental right of every citizen of this country if this country needs to move towards a cashless economy. The Governments if ever imposes ban on Internet must amount to infringement of fundamental right of the citizens and Such an amendment must come in way of a constitutional amendment before moving to Cashless Economy.
Therefore first the government should move to make an amendment to the constitution making Internet access a fundamental right of every citizen and then dream of having India as a cashless country.
And people of India while dreaming to have a cashless economy should also consider the fact that if Internet has to work as per whims and fancies of the government then they will have to suffer even more in the times to come.
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