Sumit Ranjan

4th LUSCON Science Congress

Department of Library & Information ScienceBABASAHEB BHIMRAO AMBEDKAR UNIVERSITY,

LUCKNOW Digital Divide: A Barrier in Making Cashless Society

Presented by- SUMIT RANJAN (Senior Research Fellow)

Department of Library & Information Science BBAU, Lucknow

Sumit Ranjan

What is Digital Divide ?

A large side of Indian population is

struggling to get social and economic

equality for access, to use and to

acquire knowledge of Information

Communication Technology. This divide

is called as digital divide.

Sumit Ranjan

Income Education Race Gender Geographic Location (Urban Rural) Age Skills Awareness Political, Cultural and

Psychological attitudes

Reasons of Digital Divide

Sumit Ranjan

What is Cashless Economy ?

A cashless economy is a system where any type of money transactions are done through digital means like debit cards, electronic fund transfer, mobile payments, internet banking, mobile wallets, and other newly evolved payment channels, this will leave very little scope for flow of hard cash in economy.

Sumit Ranjan

Why a Cashless Society ?

To avoid black money transactions To avoid time consuming To avoid risk It helps to economic growth It helps to increase security It helps to reduce illegal business It helps to avoid the threat of

counterfeit currency Help to effective utilization of

resources It help to effective transaction To avoid criminal activities Reduces the circulation of liquid

money

Contd….

Sumit Ranjan

Why a Cashless Society ?

People using the means of e-commerce, mobile banking or Internet banking for their purchase or for their transaction

Easy to handle The transaction process and

purchase will made easy Helps to eliminate counterfeit

currencies If the government finds a person

guilty government can easily block his/her transaction

The government can control the financial transactions in the society

More transparency and easy to track money laundering and other such activities

Environmental friendly

Contd..

Sumit Ranjan

5% of all payments happen electronically,

we are not ready for a cashless society.

0.2% of retail happens through e-

commerce

10% of bank customers use net banking

2% of insurance products are sold

online.

According to RBI data, cash still accounts

for 90 per cent of all monetary

transactions in India.

How Digital divide is a barrier in making cashless society

Contd…..

Sumit Ranjan

still, a large side of Indian population is

struggling to get social and economic

equality for access, to use and to

acquire knowledge of Information

Communication Technology.

large scale illiteracy

unavailability of internet in large

portion of the country

Lack of security of data stored on due

to low cyber security measures,

How Digital divide is a barrier in making cashless society

…..Contd

Contd….

Sumit Ranjan

Unavailability of plastic money with the people of rural areas, which have

caused popularity of paper cash.

Lack of adequate infrastructure and lack of knowledge are two major

obstacles that impede mass connectivity. Most card and cash users fear that

they will be charged more if they use cards. Further, nonusers of credit cards

are not aware of the benefits of credit cards.

……Contd

How Digital divide is a barrier in making cashless society

Sumit Ranjan

Individual must be able to connect in order to achieve enhancement of social and cultural capital as well as achieve mass economic gains in productivity.

Access is a necessary (but not sufficient) condition for overcoming the digital divide.

Border line between ICT as a necessity good and ICT as luxury good should be minimized.

driving down the costs of ICT, which includes low cost technologies and shared access through Telecenters.

Literacy Economic equality Social Mobility Rural area access

Overcome this Situation

Sumit Ranjan