CASHLESS INDIA –
A WAY FORWARD
-SOMYADARSHNA BBA- IIFSB 4th Semester ( Satyug Darshan Institute of Engineering and Technology )
Content What is cashless economy? Benefits of cashless economy Cashless future- goal of India’s Demonetization move Impact of demonetization How far are we from becoming a cashless society? Potential disadvantages of cashless economy
WHAT IS CASHLESS ECONOMY?A cashless economy is one in which all the transactions are done using cards or digital means like debit cards, electronic fund transfer, mobile payments, internet banking, mobile wallets, and other newly evolved payment channels . The circulation of physical currency is minimal.
BENEFITS OF CASHLESS ECONOMY
Attack on parallel economy
(black money, money laundering, etc.)
Increase the tax net
Security and Convenience
Decline in crime rates
(burglary, extortion, etc.)
Continued…
To avoid threat of counterfeit currency
Will accelerate the economic growth
Effective and efficient transaction
processEnvironment
friendly
CASHLESS FUTURE – GOAL OF INDIA’S
DEMONETISATION MOVE UP UNTIL THIS CAMPAIGN, INDIA WAS AN INCREDIBLY CASH-CENTRIC ECONOMY
Cash accounted for upwards of 95% of all transactions.
90% of vendors didn’t have card readers or the means of accepting electronic payments.
85% of workers were paid in cash, and almost half of the population didn’t even have bank accounts.
Even Uber in India accepted cash — the only country in the world where this option is available.
“Cash on Delivery” was the preferred choice of 70% of all online shoppers.
IMPACT OF DEMONETISATION
New bank accounts are being opened at a heightened rate.
E-payment services are seeing rapid growth, cash-on-delivery in e-commerce has crashed.
Digitally-focused sectors like the online grocery business have started booming.
Even the vegetable vendors on the streets have opened up Paytm accounts.
Paytm reported a three-times surge in new users -- tacking on over 14 million new accounts in November alone.
OBSTACLES IN
FRONT OF CASHLESS
INDIA
50% of Population doesn’t fall in any banking system Low
internet penetration rate
Low internet speed
Limited smartphone with
broadband
subscription
Limited smartpho
ne penetrati
on
Limited POS
machines
HOW FAR ARE WE FROM BECOMING A CASHLESS SOCIETY ?
POTENTIAL DISADVANTAGE
S OF A CASHLESS
ECONOMY
Security – Cyber Attack,
Fraud and Power Outages
It could reduce our
mathematical skills.
It would make skimming
money easier.
It could cause us to lose track
of spending.
It could lead to a new
divide - the DIGITAL DIVIDE
End of secrecy
Poorer people would not get benefitted.
Thank you