Abstract

This study examines the cashless economic system so as to assess the relationship between cashless economy and its impact on tourism Industry. On 8 November, 2016, Honourable Prime Minister of India, Narendra Modi shocked the country by withdrawing high denomination notes INR 500 and INR 1000 as legal tenders. The move was made with an intention to unearth the black money stashed by tax evaders, drug cartels, traffickers and other illegal entities. The fallout of the demonetisation now looks to have spilled over into the tourism Industry. New note of 500 and 2000 notes were introduced but the move has caused much pain to the travellers and tourism industry, this sector has been affected by the failure to replace the old currencies in adequate measure. The biggest brunt was borne by tourists, especially international ones, who had either recently exchanged currency or had landed the next day and had no way of exchanging the redundant cash without a valid bank account. This paper dwells on the meaning of cashless economy, impact of cashless economy on tourism industry, also explains Tourism industry scenario and highlights the benefits of cashless economy and its challenges. The authors have given some recommendations for proper implementation of the cashless economy policy by the Government of India.

Keywords: Cashless Economy, Demonetisation, Tourism Industry, Travel Agencies