Importance Of Cashless Economy

Cashless Economy in India and its usefulness to General People

Abstract:

Cashless term has widely familiar of Indian people in the past as well as present. The word ‘Cashless’ emphasised in everyone’s mind after demonetisation policy in November, 2016. Through cashless transactions, general people are getting so many benefits, like, low travelling costs, time saving device, paper saving device, availing more discounting facilities, etc. This transition economy may be a risky phenomenon in less familiar e-commerce people. Still a common trend increases regarding cashless transactions day by day. This facility also increases a healthy economic growth, wide turnover of different companies. India Govt. has also taken initiatives and conducting

Introduction:

‘Scrapping these notes has opened other avenues to make payments. Download apps of banks and e-payment options. Shopkeepers can keep card swiping facilities and everyone can ensure they pay safe using their credit and debit cards. If not a 100% cashless society, I request you to make India “less-cash society”.’

– PM Narendra Modi during his address to the nation on 27 November 20161

Cashless economy is such type of economy where all the transactions are considered without cash mode. This economy is also known as digital economy. Here the financial transactions are made with digital cash, digital wallet, electronic cards, neft/rtgc mode etc. At present, the trend of cashless transactions is increasing throughout the world including in India. Sweden is the first country, who has started the cashless journey in many years ago.2

II. Objectives:

The objectives of this article are as follows:

 To show the benefits of cashless economy

 To show the different payment mechanisms in cashless mode.

 To show the present position of Indian economy.

III. Benefits of cashless economy:

Through cashless economy, general people of India have got different benefits, such

fees etc.3

IV. Different systems of cashless economy:

There are various systems to transact in cashless economy, which is discussed below:

 Aadhaar based payment: Here the general people can pay money through aadhaar card number with the help of finger prints. Here the people can transfer funds, check balance of any bank account, payment any bill, and easily use internet banking mechanisms.

 Different cards: Cashless transactions are generally carried on by maximum people through their debit and credit cards, like master cards, visa cards etc.

 Internet banking: This banking system is also very much popular in India. Through this system people can operate all types of financial transactions in the easiest way and its greater advantage is that there is no any time limit. This is also known as a cost benefit tool.

 Electronic wallets: It is like physical wallet but no ant physical existence. People are used these wallets in different forms, like, paytm.

V. Present position of cashless economy in India:

In India, the e-commerce has been increased in a wide way with the help of this cashless economy. It is really benefited in the hands of maximum number of people but in rural sector more update is necessary. Now this paper showing the current position of cashless economy in India in the following