Digital India’s Cashless Push

India is proudly riding the wave of a digital payments revolution. With UPI leading the charge, mobile wallets everywhere, and even the RBI’s own digital currency in play, the government is actively giving a cashless push to economy. No doubt, this push promises faster transactions, more transparency, and financial inclusion.

Daily Wage Workers

But behind the flashy numbers and rising app downloads, there also exists a troubling reality: for millions of daily wage earners, street vendors, housemaids, and migrant laborers, digital money instead of solving their problems — it’s creating new ones.

Digital Money, Real Struggles

  1. ATM Troubles: No Small Change for the Poor
    Most ATMs still only dispense ₹500 notes. It being the highest denomination currency note after demonetization. It is troublesome to someone who just needs ₹50 worth of groceries or to pay a ₹100 auto fare. Even worse, ATMs in low-income areas are often empty, closed, or broken.

So workers are forced to go to ATMs from other banks — paying withdrawal charges they can’t afford. To address this, the RBI issued a circular on April 28,2025 asking banks to ensure 75% of ATMs dispense ₹100 or ₹200 notes by September 2025. While this is a step forward, it’s far from immediate relief. The poor need smaller notes now, not next year.
And they ask why not a ₹50 note?

Take Chhatri, a handicapped rickshaw puller in Ghaziabad. Every time he sends money home to his village in Bihar, he pays 1.5–2% in fees. His family pays another 1% just to withdraw it. On a ₹10,000 transfer, they lose ₹300 — that’s groceries for an entire week gone to service charges.

This was exactly the kind of gap the BC system was meant to fix. Instead, it’s added another cost for those already struggling.

Gunja, a housemaid from Gorakhpur, works in Ghaziabad. She has a bank account but no ATM card — the bank says she doesn’t have enough documents. Her landlord demands rent through a wallet app. Without help from her employer, she ends up paying ₹140 in fees just to transfer the money every month.

Gunja is one of many workers in the Maharajpur/Sahibabad Industrial Area who face such everyday issues.
It’s not that they don’t want to go digital — it’s that the system doesn’t work for them.

  1. UPI Isn’t Universal
    UPI has been widely adopted in malls and big stores, but many local grocers, tea stalls, and landlords still prefer cash. Even when workers receive money digitally, turning it into usable cash means finding a functional ATM or paying an agent — more hurdles, more costs.
Can Cash Really Be Replaced?

Some leaders believe removing cash will end corruption. Andhra Pradesh CM Chandrababu Naidu recently proposed banning ₹500 notes to crack down on black money.

But history has taught us otherwise. The 2016 demonetization didn’t end corruption — it just caused chaos, especially for small businesses and poor workers. Taking away ₹500 notes — which are still widely used (86% by Value as per RBI)— could make life even harder for those already excluded from the digital system.

Who Is Winning from Digital India?

While daily wage earners deal with ATM issues, remittance fees, and access problems, the real winners in the digital economy are:
Banks charging fees on withdrawals
Fintech apps earning commissions on every transfer
Payment gateways making profits on every QR code scanned

In the name of progress, the burden is falling on those who can afford it least.
What Needs to Change?
If India’s digital economy is to truly serve everyone, especially those on the margins, we must:
Ensure ATMs actually give out smaller denomination notes — and soon.
Cap or waive remittance and wallet transfer charges for low-income users.
Improve digital education for small vendors and workers.
Create more accessible, low-cost cash withdrawal points.
Encourage landlords and local vendors to accept affordable digital options.

Conclusion:
Digital India’s cashless future sounds exciting, but we must ask: who is it really for?
For the People — or Just for Profit?

Digital money should help the poor, not tax them.
Financial inclusion should mean access for all, not just transaction volume. And progress should reduce inequality — not deepen it.

Until systems are built to support the realities of India’s working class — from ATMs that give change to apps that don’t steal a cut — the digital economy risks leaving the very people it claims to empower behind.
So we return to the real question:
Are we building a digital India for the people — or just for profit?