Every assertion you have made is lacking the critical thinking 'Why?'
Why is a 97% cash based economy "just ridiculous?"
What is ridiculous and why is it bad?
It's bad because it facilitates corruption on multiple levels. Go to a store to buy something and inevitably the question pops up of whether you want a bill. The vendor offers you a discount if you pay cash and don't ask for a bill because that way he evades sales tax on that transaction. Most people would gladly pay cash and take the discount. With a card swipe the vendor has no choice but to account for the transaction and pay the tax on it. Multiply this across every store in the market, add gas stations, hospitals, basically anywhere money changes hands in cash and imagine the scale of tax evasion. Many people feel a sense of unfairness at the prospect of their income tax being deducted at source (@marginal 30%) when traders and business owners are getting by paying only a fraction of what they're supposed to.
Why should people not be allowed to purchase specific items with cash? Who decides that and why?
The majority of those paying cash aren't doing so just for the pleasure of it. They're doing it for a very specific purpose - to evade taxes. If the indirect tax net is broadened by discouraging these "off the books" transactions the government would be able (in theory at least) to rationalise direct taxes for the middle class who currently bear a good share of the income tax burden. Consider that over 50% of total tax revenues come from direct taxes (i.e. income tax) which are paid by less than 5% of the population. Note: this isn't the top 5% either.
Why is India an "annoying neighbor?" Why does that matter? Why is that relevant to what they do within their borders with their own currency system?
Okay, I'll count this one as a reading comprehension fail. My point was that India has an annoying neighbour that actively counterfeits Indian currency.
Why does it matter if people "can't be bothered to use the banking system?"
It matters because the promotion of a shadow economy has several drawbacks including rising tax rates, constraints on public sector spending and making econometric figures unreliable
Why is the banking system better? What does it provide that cash does not to the people that prefer cash?
How about security from theft and opportunities to earn interest?
Why do you believe interests rates dropping would be a good thing for people that can't take advantage of it?
It doesnt matter what I believe. The fact is lower interest rates are a significant factor in promoting and sustaining overall economic growth and economic growth leads to reduction in poverty levels
Why do you think that interest rates dropping would naturally lead to better infrastructure?
Not interest rates but increased tax revenues means more public funds available for infrastructure projects.
Why should someone that has cash let other people make money off of their work?
Oh I don't know - maybe because they benefit from public services like roads, sanitation and public healthcare?
Your post is just a series of claims. No critical thought. No logic. Just how you want the world to conform to your views without any convincing arguments.
and yours is a bit of a rant.