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