This is how Modi unfolded his masterplan to make India a cashless country

In all this flurry of the government scrapping Rs 500 and Rs 1,000 notes with immediate effect, what most have failed to see is the series of moves that had been leading up to this moment. First, there was the Pradhan Mantri Jan-Dhan Yojana launched on August 28, 2014. The move was essentially to set […]

In all this flurry of the government scrapping Rs 500 and Rs 1,000 notes with immediate effect, what most have failed to see is the series of moves that had been leading up to this moment.

First, there was the Pradhan Mantri Jan-Dhan Yojana launched on August 28, 2014. The move was essentially to set the foundation of creating bank accounts for the unbanked and bringing them under the gamut of financial inclusion.

Today, over 220 million bank accounts have been opened and Rs 384 billion ($5.7 billion) deposited under the scheme (as of June 2016).

Then came the much awaited Unified Payment Interface (UPI), which allowed individuals to make payments through a single identifier like Aadhaar number or virtual address. This, along with the Bharat Bill Payment System (BBPS) launched in September 2016, was an effort to institutionalise digital payments in the country.

The Income Disclosure Scheme 2016 running between June and September gave tax defaulters an opportunity to wilfully disclose their incomes. This scheme may not have worked out as planned, but yesterday’s announcement has landed defaulters in a bigger soup.

After all these steps, this announcement seems like it could serve as the greatest push to a digital, cashless economy.