Study of Recent Developments Related to Cashless Commerce in India

Journal of Commerce and Trade | October 2018 | Vol. XIII | No. 2 66 Abstract Cashless economy is a situation in which the flow of cash within an economy is non-existent and all transactions are done through electronic media channels. Prime Minister Narendra Modi, has expressed his views, on moving towards a cashless economy and creating an Indian cashless society, for betterment of Indian economy and encouraged people of India, to use cashless transactions, consider mobile phone usage, as a wallet and a bank. Moreover, the cash culture in India is dominant and people prefer to use cash wherever possible. In another step towards a cashless economy, a new service (UPI) has been recently launched that will allow for transaction using two smartphones. This is helpful for secure transactions for people who are not technology savvy. Aadhaarenabled payment system (AEPS) also used as cashless transactions. Government also promoting mobile wallets, people does not need a debit card, credit card or internet banking password for making payment using a mobile wallet. In this just load money in the wallet via IMPS and use it on the move. People can download mobile wallet app from play store. 'Digital India' focuses on transforming India in to a digitally empowered and knowledge economy. Bharat Interface for Money (BHIM) App also launched by government to promotes cashless transactions. Cashless economy, UPI, AEPS, Mobile Wallets, Digital India, BHIM. E 42, F 18, G 21


INTRODUCTION
Kotler and Keller defined commerce as the exchange of goods, services, information, money or anything else with some worth between two or more parties.
Cashless economy is a situation in which the flow of cash within an economy is nonexistent and all transactions are done through electronic media channels such as: Digital transactions bring in better transparency, scalability and accountability. In conjunction with demonetization, the government has announced waivers on convenience charges, surcharge and service charge on digital payments by government departments and organizations to promote digital and payments. The RTGS transactions have witnessed an increase of 12 percent in volume and 9 percent in value in December 2016. In the next two periods the RTGS transactions both in volume and value fell down, but significantly jumped in March 2017. In 2017-18, the growth has been very slow. Similar phenomenon is observed for retail electronics clearing system. The usage of cards in volume terms has gone up but fell in value terms in the demonetization period (December 2016). However, in subsequent months the value term has shown growth but again declined in Q1 of 2017-18. Prepaid instruments such as m-valets and PPI cards witnessed an upward trend in December but again fell in subsequent periods. Based on these statistics, it can be inferred that the shift to digital transaction was temporary and again came back to the previous level. The slow move towards digital transactions may be related to deep rooted mind set of insecure transactions or illiteracy about the digital banking.

1.
Murugesan (2007), in his Ph. D. thesis entitled "A study on bank credit card culture in Chennai city" analyses that the credit card gives ample scope for the expansion and growth of business. To reduce the burden of existing cardholders, reduction should be given in the collection of penal interest and other charges, incentive scheme should be introduced to the account holders of the bank willing to get credit card.

2.
Vaisla and Bisht (2010), the article "SWOT analysis of e-initiative in Uttarakhand", emphasis on the einitiatives levels and challenges associated with the service delivery initiatives to the citizens using (ICT) in the State of Uttarakhand are the main focus of this research work. The comprehensive review regarding einitiatives experiences in India has been detailed in the study. The perceptions of the experts towards the e-initiatives in 2.  (2017), study to find out people as a customer will only shift when it's easier, certain and safe to make cashless transactions rather than cash transactions.

1.
To identify the modes of cashless transactions in India.

2.
To identify the advantages of cashless in India.

3.
To analyse the perception of customers towards cashless commerce.
The researcher conducted a brief primary data collection on a sample basis of Meerut district in this study. Area sampling is used in combination with stratified random sampling so as to collect the data from different customers.
Total number of Customers-200

1.
Cheque: It is a known method to everyone. A cheque when presented for payment must be paid on demand. Payments through cheques lead to cashless transactions in Indian society.

2.
Demand Draft: Demand draft leads to cashless transaction. DD helps the customers to get payment through banks. Currently, many laws defined commerce in order to avoid unfair deals, by the way to avoid problems which might be dealt in the court. In today's world, every business-to Customer Company tries to sell something, whether they are products or services. Traditionally, the place to sell products in business-to-customer companies is a store. Customers just go to the shop and buy what they desire. Aadhaar-enabled payment system (AEPS) also used as cashless transactions. Government also promoting mobile wallets, people does not need a debit card, credit card or internet banking password for making payment using a mobile wallet. In this just load money in the wallet via IMPS and use it on the move. People can download mobile wallet app from play store. 'Digital India' focuses on transforming India in to a digitally empowered and knowledge economy. Bharat Interface for Money (BHIM) App also launched by government to promotes cashless transactions.

CONCLUSION
Chart No. 4

5.
How many times do you engage in cash transactions every day?
Which mode do you use most while making the payment? Chart No. 6