What is the meaning of Cashless Economy ?

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Cashless economy is such an economy where in whole business transaction in a country is dealt on e transfers and crypto currency systems unlike use of real cash.

proper infrastructure is very important in a cashless economy and if a country is considering to become cashless economy they must provide proper education for using cashless transaction etc.

cyber security issue is a big threat today and if a country does not have proper cyber security placed for protecting the country then that cashless country will become looters paradise.

A cashless economy is a system where any type of money transactions are done through digital means like debit cards, electronic fund transfer, mobile payments, internet banking, mobile wallets, and other newly evolved payment channels, this will leave very little scope for flow of hard cash in economy.

You can not make cashless economy yet u can make less cash economy but it required more financial literary and financial inclusion with cheap and effective bug proof information technology services

Cashless Economy refers to a situation where there is a negligible flow of cash within an economy, and all transactions are settled digitally.

This is achieved through extensive use of digital payment channels such as NEFT (National Electronic Funds Transfer), RTGS (Real Time Gross Settlement), credit and debit cards, digital wallets, IMPS (Immediate Payment Service), etc.

Our Indian Economy has mostly been dependent on paper currency since ages.

However, the current Indian Government has seriously been trying to make India a cashless economy. Demonetization was a big step in this direction and significantly promoted the use of digital payment channels over the traditional paper currency.

There are numerous advantages and disadvantages to having a cashless economy. In this article, we will take a look at both of them.

There still are millions who don’t have a bank account of their own.

Many small retailers deal in cash only as they don’t have the necessary insight or the affordability to invest in digital payment systems.

With more significant challenges such as illiteracy and lack of adequate infrastructure facing the country, it would be a herculean task to make India one of the few countries to have a cashless economy.

Cashless economy or cashless means all the transactions carried out between two individuals will occur by payment through payment gateways or through the plastic money. It is done with the primary aim of uncovering the non-registered transactions.

However, the merits associated with a cashless economy are far more than the demerits.

The Indian government with another aim to promote the economy through non-cash transactions has introduced mediums such as: Banking cards, USSD, AEPS, UPI, Mobile Wallets, Banks Pre-Paid Cards, Point of Sale, Internet Banking, Mobile Banking, Micro ATM’s

Cashless economy is such an economy where in whole business transaction in a country is dealt on e transfers and crypto currency systems unlike use of real cash.although cashless economy has a lot of advantages it also has a lot of disadvantages also namely:-

Reducing the economy’s dependence on the cash and making it more deviated towards these mediums would result into the betterment of the country and the economy.

The cashless economy needs to be present as the financial year of 2015 experienced the hefty amount of Rs. 21,000 crores just on the printing of the cash into the economy

proper infrastructure is very important in a cashless economy and if a country is considering to become cashless economy they must provide proper education for using cashless transaction etc.

cyber security issue is a big threat today and if a country does not have proper cyber security placed for protecting the country then that cashless country will become looters paradise.

The other need for the cashless economy is that every shady transaction that is left unrecorded will now comes into the picture making India one of the fastest-growing economies in the world.

A cashless economy is required to make the transactions more convenient for the layman rather than carrying the bulk of cash in the wallet along with plastic money.

A cashless economy is a system where any type of money transactions are done through digital means like debit cards, electronic fund transfer, mobile payments, internet banking, mobile wallets, and other newly evolved payment channels, this will leave very little scope for flow of hard cash in economy.