Cashless economy

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Cashless Economy

Cashless Economy Sovin K Thomas

Black money People intentionally do transaction in cash to save income tax.All illegal activates like money laundering, kidnapping, Bribe to government officers, terrorist activities consummate in cash payments. Indian companies are reportedly misusingNGO and public trustfor money laundering.Generally people convert their black money into Gold and real estate.Still 8% of total black money is in cash.Recent demonetization will help to reduce black money which is in a cash form.

Payment: The transfer of money from one individual or legal entity to another Cash Personal Cheques Money orders (Bank note)

Traditional Payment Methods

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20014Selection of Payment Method Based on: Convenience Trace-ability Repudiation Financial risk Fraud protection

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What is a Cashless Society?No paper money or coinsEverything is electronicPayment via E-walletsEFT- Electronic Funds TransferEPS Electronic Payment SystemMicrochips/Smart Cards

Impacts of a Cashless SocietyTransition processEducation processEconomic implicationsUniversal acceptance Whats next?

Security BenefitsElectronic means of recognitionVerification records of all transactions Computer errors are far less common than human errors

Security RisksMisuse of technologyPotential for a new crime frontierLess regulation and scrutiny

Cashless ControversiesMuch less privacyWasteful spendingPeople taking on more debtBad for those who are reliant on cash

Various E-Payment MethodsCredit and Debit cardDigital CurrencyE-WalletsPeer-to-Peer MethodsSmart cardMicro-paymentsB2B 2001

Credit/Debit Card The most popular payment method Cards are issued by a bank Unique 16-digit number (including check digits) and an expiration date Third party authorization companies verify purchases 2001

E-Wallets Established by financial institutions in partnership with member E-Commerce sites Allows customer to submit billing and shipping info with one click at member sites Also can store e-Cheques, e-Cash and credit card information Not as popular as originally projected Entrypoints InfoGate offers an e-wallet 2001

THANK YOUSovin K Thomas