Essay on Cashless India

Essay on Cashless India 1 (100 words)

Conclusion

Essay 2 on cashless India (150 words)

Conclusion

Essay on Cashless India 3 (200 words)

Conclusion

Essay 4 on Cashless India (250 words)

Conclusion

Essay on Cashless India 5 (300 words)

Conclusion

Essay on Cashless India 6 (400 words)

Importance of cashless India
Conclusion
STATUS OF INDIA DURING CASHLESS SCENARIO
Essay on positive and negative impacts of cashless
economy
FREE 570 WORDS ESSAY ON POSITIVE AND
NEGATIVE IMPACTS OF CASHLESS
ECONOMY FOR SCHOOL AND COLLEGE
STUDENTS.
The drastic digitalization over the past few years has indeed affected almost every sphere of our
lives. One of the most recent effects has been the move towards a cashless economy in India. Starting
with the note ban in November 2016 due to the sudden withdrawal of the notes of Rs.500 and
Rs.1000 denominations from the economy overnight, the Indian economy is going cashless. In other
words, least paper transactions will be involved, substituted by more digital transactions with the
help of internet banking, digital wallets, Point-of-Sale machines, credit and debit cards, etc. These are
having multiple implications on the economy with the following advantages and disadvantages.

Read More: Essay on positive and negative impact of ban of Rs500 & rs1000 in India
ADVANTAGES: CASHLESS ECONOMY IS DEFINITELY
A WISE MOVE, GIVEN THE FACT THAT IT PROVIDES
THE FOLLOWING ADVANTAGES:
DISADVANTAGES: APART FROM THE BRIGHTER
SIDES OF THE CASHLESS ECONOMY, THERE ARE ALSO
SOME DARKER SIDES ASSOCIATED WITH IT AS
EXPLAINED BELOW:
Tags: cashless economy essay, Essay on Cashless economy, essay on cashless india, effects of
cashless economy, impact of cashless economy in india

Everyone is facing huge problem when it comes to shortage of Rs 500 and Rs

1000 notes.

Why do we have to face this problem?

Is it by default or by design? Is our government doing the right thing?

Is cashless economy going to benefit this country? Or it is just for rich and poor
have to suffer.
We debate all this and many other things in following article.

What is a Cashless Economy?

Pros of a Cashless Economy

Let us start with advantages of cashless economy.

Cons of a Cashless Economy

Well we also have to look other side of the picture.

Rich Vs Poor Debate

The whole debate about cashless economy revolves around rich versus poor.

Here we are not talking about Sweden or Denmark but India.

Still people in this country struggle to meet their basic needs like food, cloth and
shelter.

Over half of the population does not fall in any banking network. They still have to
depend upon hard cash for meeting their basic needs.

Recently over 80 people have died because of demonetization. You can imagine
the impact if country decides to go completely cashless.

Poor people have to suffer a lot because they will not be covered.

On the other hand people living in urban areas will benefit because the cashless
economy is for them.

Government has to be inclusive and include all sections of society before they go
for a cashless economy.

Otherwise poor which is more than 50% of the country will reject cashless
economy and government has to suffer set back in coming elections.
So you can conclude by saying cashless economy is good if it is inclusive
otherwise it is really bad.

Cashless India : Meaning, Essay, Speech, Article

Introduction
Cashless India : Meaning, Essay, Speech, Article

CASHLESS INDIA : Meaning

CASHLESS INDIA Initiative by Mr. NARENDRA MODI

These are a few statements enlisted in the Digital India program’s vision.

 Promotes services based on humanity basis and not on basis of a person’s

social status.

 .

CONCLUSION

What is mean by cashless

transaction economy?
tojo jose

August 2, 2016
What are the advantages of less cash economy?

There are several reasons why the government and the RBI brings
up measures to promote cashless transaction economy. besides
convenience, digital transaction gives more scope for recording of
transactions and in this way it is a first step against the spread of
unaccounted money or black money. Secondly, the problem of
counterfeit notes can also be avoided when payment is settled
digitally.

Efforts towards cashless transaction economy.

The RBI and government have launched several measures for the
spread of electronic and other non-cash settlement culture.

The Vision-2018 for Payment and Settlement Systems in India

brought by the RBI in June 2016 reiterates the commitment to
encourage greater use of electronic payments by all sections of
society so as to achieve a “less-cash” society.

“The broad contours of Vision-2018 revolve around five Cs —

coverage, convenience, confidence, convergence, and cost. To
achieve these, Vision-2018 will focus on four strategic initiatives
such as responsive regulation, robust infrastructure, effective
supervision and customer-centricity,” – RBI. The vision statement
highlights following plans:
  The regulator wants to reduce the share of paper -based clearing
instruments
 It aims to raise growth of the digital payments space
 It wants to ensure accelerated use of Aadhaar in payment systems

Government also made fiscal measures for the encouragement of

card culture in the 2016 budget. Exempting service charge on card -
based and other digital payments was one such step. Aadhar based
payment system will be a big boost for promoting the cashless
transaction culture.

A committee of seven members, chaired by a ministry official,

Neeraj Kumar Gupta was formed to recommend steps for the
reduction of cash based transactions.

The technology has spread internet banking, mobile banking,

prepaid instruments, credit and debit cards etc. and at the same
time, electronic payments system is fast growing. All these indicate
that India is moving towards the RBI’s goal of less cash economy -
steady but slowly.
Cashless transaction: Modes, advantages and

disadvantages

N Ramya, D Sivasakthi and M Nandhini

Abstract

The RBI and the Government are making several efforts to reduce the use of cash in the economy by

promoting the digital/payment devices including prepaid instruments and cards. RBI’s effort to

encourage these new varieties of payment and settlement facilities aims to achieve the goal of a ‘less

cash’ society. With limited cash in hand and an indefinite crunch in sight, most people are rushing to

cashless transactions. Digital transactions bring in better transparency, scalability and accountability.

The new move will compel more merchants to accept digital money. Cash may no longer be king.

Keywords: Convergence, NEFT, RTGS, AEPS, point of sale

Introduction

Cashless Transaction Economy

The RBI and the Government are making several efforts to reduce the use of cash in the

economy by promoting the digital/payment devices including prepaid instruments and cards.

RBI’s effort to encourage these new varieties of payment and settlement facilities aims to

achieve the goal of a ‘less cash’ society. Here, the term less cash society and cashless

transaction economy indicate the same thing of reducing cash transactions and settlement

rather doing transactions digitally.

Cashless transaction economy doesn’t mean shortage of cash rather it indicates a culture of

people settling transactions digitally. In a modern economy, money moves electronically.

Hence the spread of digital payment culture along with the expansion of infrastructure

facilities is needed to achieve the goal.

On November 8th, government withdrawn Rs 500 and Rs 1000 notes- two highest

denominations in circulation. Main objectives were to fight counterfeit money and black

money. The action has given tremendous boost to cashless transactions as card based and

digital payments were not hindered when all high denomination cash transactions suffered

because of absence of high denomination currencies.

Efforts towards cashless transaction economy

The RBI and government have launched several measures for the spread of electronic and

other non-cash settlement culture.

The Vision-2018 for Payment and Settlement Systems in India brought by the RBI in June

2016 reiterates the commitment to encourage greater use of electronic payments by all

sections of society so as to achieve a “less-cash” society.

“The broad contours of Vision-2018 revolve around five Cs — coverage, convenience,

confidence, convergence, and cost. To achieve these, Vision-2018 will focus on four

strategic initiatives such as responsive regulation, robust infrastructure, effective supervision

and customer-centricity,” – RBI. The vision statement highlights following plans:

• The regulator wants to reduce the share of paper-based clearing instruments

• It aims to raise growth of the digital payments space

• It wants to ensure accelerated use of Aadhaar in payment systems

Government also made fiscal measures for the encouragement of card culture in the 2016

budget. Exempting service charge on card-based and other digital payments was one such

step.

International Journal of Applied Research 2017 ; 3(1 ): 122-125

~ 123 ~

International Journal of Applied Research

Aadhar based payment system will be a big boost for

promoting the cashless transaction culture.

A committee of seven members, chaired by a ministry

official, Neeraj Kumar Gupta was formed to recommend

steps for the reduction of cash based transactions.

The technology has spread internet banking, mobile

banking, prepaid instruments, credit and debit cards etc. and

at the same time, electronic payments system is fast

growing. All these indicate that India is moving towards the

RBI’s goal of less cash economy-steady but slowly.

It’s time to go cashless. The purpose of demonetization is

not only to remove black money but also to encourage

cashless payment. Instead of breaking heads by standing in

ATM queue you should adopt a cashless method for the

transaction. A cashless method is more transparent as every

transaction can be traced easily as it leaves its footprints.

Many smart people have adopted new cashless payment

options.

Rupay: Kisan credit card holders to get RuPay Kisan cards.

Disadvantages of cashless transactions

Higher risk of identity theft

The biggest fear is the risk of identity theft. Since we are

culturally not attuned to digital transactions, even well-

educated people run the risk of falling into phishing traps.

With the rising incidence of online fraud, the risk of hacking

will only grow as more people hop on to the digital

platform.

Besides, the latest move by the government to remove the

two-factor authentication process for online transactions up

to `2,000, will not help. Irrespective of the size of

transaction, the absence of this additional layer of security

will expose thousands to the risk of identity theft. Another

weak link is the inadequate redressal mechanism. With the

poor redressal system in India, imagine what a poor

rickshaw puller will do if he has his Aadhaar ID stolen?

Given the tedious process and poor grievance redressal,

people will have no easy recourse if they lose money online.

There is no stringent legal process to deal with this kind or

scale of fraud. Add to it the mass identity theft from banks’

or companies’ databases and it can turn into a financial

nightmare akin to the data breach in the Indian banking

system in October this year.

Losing phone

Since you will be dependent on your phone for all your

transactions on the move, losing it can prove to be a double

whammy. It can not only make you susceptible to identity

theft, but you could also be rendered helpless in the absence

of physical cash or any other payment option. This can be

~ 125 ~

International Journal of Applied Research

especially problematic if you are travelling abroad or in

smaller towns or villages with lack of banking infrastructure

or other payment options. Another drawback is that you

need to keep your phone constantly charged. If the phone

dies on you, you will be stranded, particularly if you are in

the middle of an important purchase or dealing with an

emergency.

Difficult for tech-UNSAVVY

India has a low Internet penetration of 34.8%(2016),

according to the Internet Live Stats, and only 26.3% of all

mobile phone users have a smartphone (2015), as per

Statista figures. Besides the practical difficulty of going

digital, a bigger block is the psychological shift. You are

suddenly jumping three generations to the digital medium.

It’s a problem for the older people, who may suddenly find

themselves locked out of their accounts if they can’t

download an app or don’t have cash. The digital medium

may prove a challenge for the tech-unfriendly people, who

will need more time to adapt or the availability of other

options to conduct transactions.

Overspending

While there is no denying the convenience of card or mobile

wallet transactions, it could open a spending trap for an

unsuspecting population. According to behavioural finance

theorists, the pain of parting with money is felt more acutely

if you use physical cash instead of a card. Hence, using cash

instead of cards or mobile wallet acts as a natural bulwark

for people who find it difficult to control their spending.

This is the reason that people could end up overspending,

throwing their budgets into disarray.

Besides, a high penetration of the digital payment system is

contingent on the fact that the same amount of cash does not

come back into circulation. If it does, people are more likely

to switch back to the former ease of using cash as it is a

habit that they may find difficult to break.

Conclusion

With limited cash in hand and an indefinite crunch in sight,

most people are rushing to cashless transactions. Digital

transactions bring in better transparency, scalability and

accountability. The new move will compel more merchants

to accept digital money. Cash may no longer be king. While

you wait for the serpentine queues at ATMs to peter out and

currency notes of Rs 100 denomination to become easily

accessible again, the adoption of digital payment solutions is

picking up at a furious pace. Everyone from the

neighborhood vegetable vendor to the chai and bhelpuri-

wala is embracing digital payment solutions to tide over the

cash crunch.

ET Wealth conducted an online survey to find out the level

of adoption of digital payment solutions and user habits. The

findings reveal that while people are getting comfortable

with cashless payments, some mindset issues are holding

back many from embracing the newer platforms. The

findings also suggest that the usage habits of those who have

taken to cashless modes could be exposing them to security

threats.

WHAT IS CASHLESS ECONOMY?

An economy that highly relies cards or digital transactions throughout the country can be called a
Cashless Economy. In such an economy, the flow of physical money in and out will be minimal.
WHY CASHLESS ECONOMY?
Following this, he also introduced the scheme Cashless Economy. The advantages and
disadvantages of Cashless Economy are:

Cashless Economy in India : Importance, Advantages

& Disadvantages

Image source: feegenie.com

Pros of Cashless Economy (Benefits & Advantages)

1

Cons of Cashless Economy in India (Drawbacks & Disadvantages)

Conclusion
WHAT IS CASHLESS?

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.
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

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.

IMPORTANCE:

The cashless economy has importance attached to it in the following ways:

Introduction

India continues to be driven by the use of cash; less than 5% of all payments happen
electronically however the finance minister, in 2016 budget speech, talked about the
idea of making India a cashless society, with the aim of curbing the flow of black money.
Even the RBI has also recently unveiled unveiled a document — “Payments and
Settlement Systems in India: Vision 2018” — setting out a plan to encourage
electronic payments and to enable India to move towards a cashless society or
economy in the medium and long term.

source

Benefits of Cashless economy

Keywords: Cash, global payments, Indians, payment instruments, debit card, hackers, financial
institutions, electronic currency, etc.

INTRODUCTION:

SIGNIFICANCE OF THE STUDY:

This paper discusses about the current scenario of Cashless India after demonization. It also strives to
describe the focuses on the impact of devaluation on our economy,counterfeit currency and challenges
towards cashless economy.

RESEARCH METHODOLOGY:

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The prepared paper is a descriptive study in nature. The study has been carried out based on the
collection of the relevant secondary data. Secondary data collection was based on various sources such
as published books, articles published in different journals & newspapers, periodicals, conference paper,
working paper and websites, etc.

OBJECTIVES:

The objectives of study were based on:

1. To study the current position of Cashless India. 2. To understand the advantages of Cashless India. 3.
To understand the disadvantages of Cashless India. 4. To suggest the future prospects of Cashless India.

MEANING & DEFINITION OF CASHLESS ECONOMY:

Cashless Economy can be defined as a situation in which the flow of cash within an economy is non-
existent and all transactions must be through electronic channels such as direct debit, credit cards, debit
cards, electronic clearing, and payment systems such as Immediate Payment Service (IMPS), National
Electronic Funds Transfer (NEFT) and Real Time Gross Settlement (RTGS) in India.

In a cashless economy most of the transaction will be done by digital means like e banking, debit and
credit cards, PoS (point of sales) machines, digital wallets etc. In simpler words no liquid money or paper
currency will be used by the people in a given country. In a cashless economy the third party will be in
possession of your money. He will allow you to transact that money whenever it is needed. If it is not
needed then the third party can use that money. Third party can be a government or any other public or
private sector bank.

CURRENT POSITION OF CASHLESS INDIA:

ADVANTAGESOF CASHLESS PAYMENTS:

ADVANTAGES OF GOING CASHLESS:

 Saves Money and Time: Companies and governments will get efficient and they can reduce costs as
they no longer need the manual accounting work to be done. The costs associated with accounting and
handling cash is very high. Less Cash Decreased Crimes: Business and individuals can also avoid other
costs as well. Theft often leaves a big hole in one's pocket. The risk of theft will continue until people
carry cash and by going cashless the same can be reduced. This also leaves an impact on the
government as they can then reduce the costs that the government spends on nabbing the culprits. In
countries like the US, burglary and assault have dropped by about 10 % once the government shifted the
payment made for social welfare to electronic transfer. The government, however, has to take measures
to curb the online scam and identity theft incidents. Production Costs of Coins and Paper Currency are
reduced: Production of coins and paper currency is indeed an expensive endeavor and the life span of
most of the paper currencies is about 6 years. So, by going electronic the cost of production gets
reduced. Less Cash Means More Data: The government can use the data coming from the cashless
transactions to improve and analyze their policies. By using such data, officials can predict or identify the
patterns of activity and use such information for urban planning for sectors like energy management,
housing, and transportation. More Spending Helps Improved Economic Growth: When a nation is
taking a step towards a cashless economy, a boost in the economic growth can be expected. In countries
like US higher card usage has contributed a consumption of about US$296 billion globally from the year
2011 to 2015 which is a 0.1 % increase in the GDP. Shopping online gets easy as one can use a number of
payment options; from credit and debit cards to net banking. One can observe more spontaneous
buying while making cashless payments. Countries like Singapore have also witnessed a growth of 0.1 %
in GDP which accounts to about S$400 million per annum. As people spend more, companies need extra
staff to handle the demand for goods and services and this, in turn, creates more jobs for unemployed.

In addition to this, going cashless also has health benefits. With physical currency, the chance of
spreading of germs is more. Reducing the amount of use of paper currency will reduce the germ
transmission.

DISADVANTAGES OF CASHLESS PAYMENTS:

Here are some of the problems which stand in the way of India becoming a cashless society:

Cyber security: In October 2016, the details of over 30 lakh debit cards were feared to have been
exposed at ATMs. It was believed that the card and PIN details might have been leaked due to which
customers were advised to change the PINs of their ATM-cum-debit cards. Stringent steps issuing new
cards were also taken. Just a month later, the PM is motivating people to move to a cashless society. Is
the cyber security in place? While a card is cloned, it takes several months to recover someone’s
hardearned money from the banks. How can people be assured that swiping cards at small shops and
vendors will not be a risk to revealing our card details? Network connectivity: Since the day
demonetisation was announced, people are trying to use more of card transactions to save that dreaded
trip to the bank and to save the last penny of the hard cash in hand. However, a sudden surge in card
transactions has led to connectivity issues. Several people have faced trouble while standing in line to
pay for a transaction at a shop when the card machines have stopped working due to an overload on the
network. Connectivity issues must be resolved before dreaming about a cashless society. Internet cost:
The internet cost in India is still substantially high. There is no Wifi at public places and if people do not
get their monthly data packs recharged, there is no way they can be connected to make online
payments. Internet connectivity is needed even for the e-wallets. In order to convince people to do
cashless transactions, the cost of the internet should be lowered and free WiFi should also be provided
at public places. Charges on cards, online transactions: Heard of convenience charges? Of course, you
would have if you do online transactions. These are additional charges that are levied by the vendors
when they offer an online payment facility. But when the government is forcing us to go cashless,
shouldn’t this compulsory fee on online transactions be taken off?

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Non-tech-savvy: While the new generation is glued to their phones and gadgets, computer literacy
among the people in the over-50-age group is still low. Not many people are comfortable using
computers or mobile phones and depend on their children when it comes to using the gizmos. Before
promoting a cashless society, efforts need to be taken to educate people on how to use phones for
transactions. Smart phone affordability: Several companies have come up with new and inexpensive
phones, but they still not affordable for most of the population in the country. More affordable options
should be launched by the government for people to buy smartphones for cashless transactions.
Infrastructure/phone battery: India still lacks when it comes to supporting a mobile society. It is
extremely difficult to find a public charging point if the phone battery discharges. Even metro stations or
railway stations in the tier one cities do not provide that infrastructure. So what happens if you have
cash in your wallet, but you are out of battery after travelling on the road for a day? Is there any
alternative that we have then? Not enough bank accounts: Most people still do not have bank
accounts. Most often there is just one account per family which also limits the number of cards people
can have individually. A family of even four people cannot be dependent on just one card for all
household expenditure. Internet blockage: States like Jammu and Kashmir often face crackdown
where the internet is the first thing that is blocked. In such circumstances, neither is it possible to use
cards for transactions nor is it possible to use e-wallets. Any alternatives there? Are banks ready?: A
cashless society needs a proper infrastructure. The banks need to be fully equipped to handle the surge
in e-transactions. Infrastructure is also needed in terms of opening more accounts in the banks.
Encourage people to spend: Spending by cards often encourages people to spend more giving cash by
hand helps people keep a check on their expenses but paying by cards gives people a free hand. Not just
through credit but even the debit cards give that impression that you can make that payment
immediately.

A cashless society is a welcome idea but not without preparation. There is a precursor to taking such
steps without which a move such as this would be more harmful that being beneficial. A cashless
society, for now, seems like a distant dream but a less cash society can be appreciated.

FUTURE PROSPECTS OF CASHLESS PAYMENTS IN INDIA:

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CONCLUSION:

Introduction
 In a cashless economy most of the transactions will be made using digital means like e banking, debit
and credit cards, point of sales machines (PoS) and digital wallets. In simple way cash less economy
means an economy wherein most of the transactions are without the use of physical cash i.e. paper
currency. In these transactions the money is vested with a third party either bank or payment banks. In
effect these cashless transactions are beneficial because it reduces the risks involved in physical
handling of cash. Cashless doesn’t mean ‘without cash economy’ rather it means least or less cash into
economy. It is a step towards the digital economy because it ensures that the digital fingerprints of all
the transactions are available.

World Scenario about cashless economy

In India almost 98 per cent of the economic transactions are put through cash. Resorting to cashless
economy does not mean that the total cash transactions will be eliminated. It will be reduced to a
reasonable level. On this backdrop it will be interesting to know the world scenario on this score. The
following table gives the top ten countries where cashless economy is practiced.

INTERNATIONAL RESEARCH JOURNAL OF MULTIDISCIPLINARY STUDIES

Vol. 3, Issue 12, December, 2017 ISSN (Online): 2454-8499 Impact Factor: 1.3599(GIF),
0.679(IIFS)

5th December, 2017 Page No: 2 Web: www.irjms.in Email:

irjms2015@gmail.com, irjms.in@gmail.com

COUNTRIES CASHLESS TRANSACTIONS 1-Singapore 61% 2-Netherlands 60% 3-France 59% 4-Sweden 59%
5-Canada 57% 6-Belgium 56% 7-United Kingdom 52% 8-USA 45% 9-Australia 35% 10-Germany 33%
Source: Mastercard Advisor's Measuring progress toward a cashless society available on website:
http://www.businesstoday.in/current/economy-politics/here-are-the-top-cashless-countries-in-the-
world downloaded on 21.7.2017

It is pertinent to note that when India launched the campaign for cashless transactions as a result of fall
out of demonetization it has positively impacted the rate of cash related crimes and robberies in
Mumbai and Delhi. From the government point of view the cashless transactions leads to routing of
transactions through official channels means it helps in curbing the unaccounted money which is termed
as black money. This black money is the backbone of the parallel economy which is prevalent in India.
Therefore, the cashless economy is an attack on the parallel economy. This move will certainly reduce
the parallel economy. The cashless transactions have brought transparency which helps the government
to scientifically administer the tax administration.
Advantages of cashless economy

Conclusion:

References:

www.google.co.in http://www.thehindubusinessline.com/opinion/editorial/cashless