Cashless society

1. Cashless India Cashless society

2. A cashless economy: • India has the highest use of cash in the world, according to MasterCard report • Such high use of cash would only strengthen the country’s informal economy, which is not in the larger interest of the nation • Reduced use of cash would choke the grey economy, curb money laundering and result in increased tax collections to the government’s coffers. • Various options towards a cashless or less-cash economy include Unified Payments Interface, Bank Card, prepaid cards, using various cards at any point of sale/ ATM, e-wallet or digital wallet, etc.

3. Benefits of cashless economy:- • Current cash flow deficit force people to make digital payments. • Security of online transacting companies: PayTM, is certified under the Payment Card Industry Data Security Standard (PCI DSS) 2.0 certification • There are many more platfors which provides you to go cashless with their e-wallets services. • Cash facilitates drug trafficking, human trafficking, extortion, money laundering and illegal immigration • In a cashless society, people would be forced to remove savings from under their mattresses and keep them in the bank

4. Disadvantages:- • It is an intuitive method of exchange and acts as a store of value. • It doesn’t come with the transaction fees of electronic payment methods. • Hackers continuously test security systems, therefore, entrusting savings to financial institutions is not an easy decision. • Creating fake mobile applications and spyware that steal information, or social engineering tactics that make you reveal your login credentials. • Forums on Internet are flush with step-by-step instructions on how to create fake websites that imitate digital payment platforms.

6. The impact of mobile wallets in hastening the transition to a cashless economy is overstated. Merely 26% of India has internet access, and there are only 200 million users of digital payment services. The World Bank’s Global Findex shows that Indians are significantly less familiar with digital banking – the use of credit or debit cards, making transactions using mobile phones, and using the internet to pay bills – than their peers in middle-income nations.

8. Indians shop with cashless wallets • Context: Growing popularity of e-payments and mobile wallets among the youth in the country • Background: Recently, govt. cleared the implementation of a few measures to promote digital and card-based payments to curb cash use in the system • Measures: It includes withdrawal of surcharge, service charge or convenience fee on card and other digital transactions • Impact: This makes RBI’s work easy to bring in accountability and transparency in each financial transaction • Future: Country is heading for a cashless economy with a change in the way netizen’s make their day-to-day transactions

9. Why cashless society:- • Because it is also much more risky to conduct criminal transactions or avoid the proper payment of due taxes in a cashless society, such violations are likely to be greatly reduced. • It eliminates the need to carry cash or plastic. Digital payments can be made with a tap or wave of a smart phone, depending on the technology used. It would make it easier to loan or borrow money – as with digital payments, lending and borrowing can be reduced to a tap or wave of a smart phone.

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