CASHLESS ECONOMY - meaning, advantages. impact of demonetization, hurdles, potential disadvantages

1. CASHLESS INDIA –
A WAY FORWARD
-SOMYADARSHNA
BBA- IIFSB
4th Semester
( Satyug Darshan Institute of Engineering and Technology )

2. 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

3. 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.

4. 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.)

5. Continued…
To avoid threat of
counterfeit currency
Will accelerate the
economic growth
Effective and efficient
transaction process
Environment friendly

6. 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
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.

7. 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

8. 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
smartphone
penetration
Limited POS
machines
HOW FAR ARE
WE FROM
BECOMING A
CASHLESS
SOCIETY ?

9. POTENTIAL
DISADVANTAGES
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.

10. Thank you