Barriers for transition to cashless for MSMEs – The Economic Times–21.06.2017

A survey of over 1,700 consumers post demonetisation by consulting firm BCG indicated that a majority of the 50 odd MSMEs it surveyed indicated a preference for reverting to cash instead of migrating to digital mode as they faced several barriers which include lack of clarity on digital transactions, poor penetration of digital acceptance infrastructure. Besides since bulk of funding needs are met through informal sources which is at a higher cost, there is a tendency by MSMEs of under reporting and evasion to remain competitive.