Cashless economy disadvantages

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Udaybhansinhji Regional Institute of Cooperative Management (URICM)Sector -30, Gandhinagar -382030, GujaratFully funded by Ministry of Agriculture and Dept of Cooperation, Govt of India

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Cashless Indian Economy(Disadvantages)Presented by,PGDM 1st yearSubmitted To:Prof. Kshamanidhi sir

Cashless Economy:A cashless economy is one in which all the transactions are done using cards or digital means. The circulation of physical currency is minimal. India uses too much cash for transactions. ... The number of currency notes in circulation is also far higher than in other large economies.

Requirement of Cashless economy:Network connectivity ElectricitySmartphonesEnough bank accountsDebit and credit cardsThird party application(paytm, etc.)

Methods of cashless transaction:Mobile bankingInternet bankingCredit /debit card

Mobile banking:Mobile banking refers to the use of a smartphone or other cellular device to perform online banking tasks while away from your home computer, such as monitoring account balances, transferring funds between accounts, bill payment and locating an ATM

Internet banking:Online banking, also known asinternet banking, e-bankingor virtualbanking, is an electronic payment system that enables customers of a bank or other financial institution to conduct a range of financial transactions through the financial institution's website

Card banking:

Bank-issued plastic card with a magnetic stripe that holds machine readable identification code. Bank cards are used for electronic commerce (with magnetic stripe readers or via Internet) and for banking transactions through automatic teller machines (ATMs). Two main types of bank cards are credit cards (which allow drawing of funds up to an approved credit limit) and debit cards (which allow drawing of funds up to the available balance in cardholder's account).

E Wallets:PaytmFreecharge

Paytm:In order to use the Paytm Wallet and transact cash-free, follow the steps below:Set up a Paytm account using your mobile number and email IDAdd some money to your Paytm Wallet using net banking, debit card, or credit cardTo transfer money to someone else,select the 'Pay or Send' optionYou can make payments to others or to bank accounts on Paytm by scanning a QR codeAlternatively, you can send money to another Paytm user via their phone number

Disadvantages of paytm:Mobile network connectivitysecurity issuesfear of misuse of their money by hackers and fraudsCan not be use in simple phone

Freecharge:How to use:Enter Mobile number and press Enter. Your Operator & Circle will be selected automatically. Choose your free coupons of equivalent amount. This step is Optional. Enter your registered email id & password (if you have already registered with FreeCharge before) or just follow the simple New user registration process - it will take less than 2 minutes. Pay online via Net Banking/Debit Card/Credit Card to complete the recharge instantly. Coupons will be delivered to your inbox instantly via email.

Disadvantages of freecharge:FraudLack of network connectivityTax (2%)Take extra Buffering charges as compare to other apps

Disadvantages of Cashless Economy:NO CASH/CURRENCY at handIf you lose it may take a long while to procure another.Someone can steal your card buy stuff. (only if they know the PIN).Cash is not under your control.Impractical if you move to another countrySurcharge on goods and services Cards get expired and then you have to buy new one which takes long time. Risk of computer hack your cards or may be chip.