Journal of Entrepreneurship & Management

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Effect of Cashless Economy on Micro, Small and Medium Enterprises (MSMEs):A Study from Indian Perspective


Affiliations
1 Department of Commerce, Aligarh Muslim University, Aligarh, Uttar Pradesh, India
     

   Subscribe/Renew Journal


The present study is to examine the impact of cashless monetary policy on micro, small and medium enterprises (MSMEs) in India. The government’s initiative towards cashless economy triggers with demonetisation of high denomination currencies. Cashless economy is a financial environment that minimises the use of physical cash by providing alternative channels for making payments, and fosters a clean and digital economic culture. Demonetisation, for a while, slows down all economic activities and imputes to use digital mode for transactions. The MSMEs prefer to do all its transactions with conventional mode; sudden move by the demonetisation severely affected the MSME sector. Stringent reactive policies are required to this segment for surviving in a cashless economy. Economic reform without considering MSMEs will result negative impacts, it acts as a mediating role in economic growth. Currently the dealers and customers are adopting digital infrastructure and slowly it will create a digital economic culture. The objective of the study is to determine possible implications of a cashless economy on micro small medium enterprises in India. It also discusses challenges that MSMEs would face in a cashless society and points out some possible solutions. The study is based on secondary data and simple statistical tools are used for analysis.

Keywords

Cashless Economy, Demonetisation, MSMEs, Digital Culture, Electronic Payment.
Subscription Login to verify subscription
User
Notifications
Font Size


  • Adewale, A. (2012). Evaluating the system transition to a cashless economy in Nigeria. Retrieved from http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2050657

  • Ajayi, L. B. (2014). Effect of cashless monetary policy on Nigerian banking industry: Issues, prospects and challenges. International Journal of Business Finance and Management Research, 29-41.

  • Akhalume, P. B., & Ohiokha F. (2012). Nigeria’s cashless economy: The imperatives. International Journal of Management & Business studies, 2(2), 31-37.

  • Amujiri, B. A. (2015). The effects of cashless policy on nigerian economy. International Journal of Research in Social Sciences, 5(3).

  • Das, A. ( 2010). Cashless Payment System in India: A Roadmap. Retrieved from http://dspace.library.iitb.ac.in/jspui/handle/10054/1732

  • Digital Economy Outlook. (2015). OECD Publishing, Paris. DOI: http://dx.doi.org/10.1787/9789264232440-en

  • Digital India: Unleashing Prosperity, Confederation of Indian Industry (CII).

  • Ebeiyamba, O. J. (2014). Effect of cashless economy on micro and small scale businesses in Nigeria. European Journal of Business and Management, 6(1).

  • Edet, O. (2008). Electronic banking in banking industries and its effects. International Journal of Investment and Finance, 3, 10-16.

  • Humphrey, D. B., Pulley, L. B., & Vesala, J.M. (1996), “Cash study and electronic payments: A cross country analysis. Journal of Money, Credit and Banking, 1.

  • Irfana, S. (2012). Digital Economy in rural India and UIN. International Journal of Business Intelligence and Management.

  • Jain, P. M. (2006). E-payments and E-banking. The Indian Banker, 1(3), 108-113.

  • Mukhopadhyay. (2016). Understanding cashless payments in India. Financial Innovation 2(27).

  • Ojukwu, D. (2006). Achieving sustainable growth through the adoption of integrated business and information solutions: A case study of Nigerian small & medium sized enterprises. Journal of Information Technology Impact, 47-60.

  • Olanipekun, W. D., Brimah, A. N., & Akamni, L. F. (2013). Integrating cashless Economic Policy in Nigeria. Challenges and prospects. International Journal of Business and Behavioral Sciences, 3(5).

  • Omotunde, M., Sunday, T., & John-Dewole, A. T. (2013). Impact of cashless Economy in Nigeria. Greener Journal of Internet, Information and Communication System, 1(2), 141-143.

  • Paul, B. (2006). The cashless society: Increased usage of card-based payment systems. Electronics, and Computer Science, University of South Ampton.

  • The Digital Economy. (2012). Retrieved from http://www.oecd.org/daf/competition/OECD Publishing, JT03334249

  • Thierry, R. (2008). Understanding the challenges of the digital economy: The nature of digital goods. Imperial College London.

  • Van Hore, L. (2003). Making electronic money legal tender: Pros & cons. Paper prepared for Economics for the Future University of Cambridge.

  • Vincent, L. (2005). Credit cards: Modern payment system. Review of Social Sciences, 6(1), 71-76.

  • White, L. H. (1995). Thoughts on the economics of digital currency. Extropy, 15(7)(2), 16-18.


Abstract Views: 1563

PDF Views: 0




  • Effect of Cashless Economy on Micro, Small and Medium Enterprises (MSMEs):A Study from Indian Perspective

Abstract Views: 1563  |  PDF Views: 0

Authors

P. A. Ibrahim
Department of Commerce, Aligarh Muslim University, Aligarh, Uttar Pradesh, India
Nasir Zameer
Department of Commerce, Aligarh Muslim University, Aligarh, Uttar Pradesh, India

Abstract


The present study is to examine the impact of cashless monetary policy on micro, small and medium enterprises (MSMEs) in India. The government’s initiative towards cashless economy triggers with demonetisation of high denomination currencies. Cashless economy is a financial environment that minimises the use of physical cash by providing alternative channels for making payments, and fosters a clean and digital economic culture. Demonetisation, for a while, slows down all economic activities and imputes to use digital mode for transactions. The MSMEs prefer to do all its transactions with conventional mode; sudden move by the demonetisation severely affected the MSME sector. Stringent reactive policies are required to this segment for surviving in a cashless economy. Economic reform without considering MSMEs will result negative impacts, it acts as a mediating role in economic growth. Currently the dealers and customers are adopting digital infrastructure and slowly it will create a digital economic culture. The objective of the study is to determine possible implications of a cashless economy on micro small medium enterprises in India. It also discusses challenges that MSMEs would face in a cashless society and points out some possible solutions. The study is based on secondary data and simple statistical tools are used for analysis.

Keywords


Cashless Economy, Demonetisation, MSMEs, Digital Culture, Electronic Payment.

References