Question

‘During the last few years’ initiatives such as Jan Dhan Yojna, Aadhar-enabled payment systems, e-Wallets, National Financial Switch (NFS) and others have strengthened the government's resolve to go cashless.’

Elaborate on how such initiatives may have affected the Indian economy.

Answer 1

These initiatives affect the economy by :

Increasing the total number of bank deposits.

Leading to more deposition of money.

Lending capacity of banks increases due to more accounts.

Easing of payments systems. 

Availability of loans, investments increase. 

All these lead to more pumping of money into the economy leading to the overall growth in the National Income.