2. What is Cashless Economy?
A cashless economy is one in which all the transactions are
done using cards or digital means. The circulation of physical
currency is minimal.
A cashless economy runs on credit or debit cards, electronic
funds transfer, or online shopping instead of cash.
The Digital India programme is a flagship programme of the
Government of India with a vision to transform India into a
digitally empowered society and knowledge economy.
“Faceless, Paperless, Cashless” is one of the professed roles
of Digital India.
3. OBJECTIVES
•To study about the emergence of the
concept ‘cashless’ in India
•To find out how cashless is beneficial to
Indian people
•To study about the possible challenges while
implementing the cashless mode
4. •Chakravarthi Rangarajan headed a
committee which recommended
ATM in India. HSBC (Hongkong and
Shanghai Banking Corporation) was
the first bank to introduce the ATM
concept in India in 1987.
•2004: ATM Charge waived
•2004: RTGS introduced
•2005: NEFT launched
•2006: India’s first E-wallet
‘WALLET365’ launched
• 2010 : Launch of IMPS
#Recent-
UPI, AEPS, MICRO ATMs, POS, Mobile
Banking, Banks Pre-Paid Cards
5. Banking cards
(Debit/Credit Cards)
Banks Prepaid cards
Internet banking
USSD
Mobile wallets
Mobile banking
Point of sale
Micro ATMs
AEPS
UPI
RECENT DIGITAL PAYMENTS MODES
7. Advantages to Economy
• Tackling Black Money
• Circulation of Fake Currency notes can be curbed
• A cashless economy will help reduce corruption
• Increase Tax base: It is difficult to avoid the proper payment of
due taxes in a cashless society, such violations are likely to be
greatly reduced
• Increased tax base would result in greater revenue for the state
and greater amount available to fund the welfare programmes
• It will eliminate the risks associated with carrying and
transporting huge amounts of cash
8. oSaves Money and Time:
oLess Cash Decreased
Crimes
oAvoid risk of carring
cash
oFreedom in case of
change in odd cash
transactions
oFake currency can be
avoided
oTracking of transections
is possible
9.
10. • India’s reliance on cash
Indian economy is primarily to be driven by the use of cash
and less than 5% of all payments happen electronically.
Indians traditionally prefer to spend and save in cash and a
vast majority of the more-than 1.2 billion population doesn’t
even have a bank account.
A report by Google India and Boston Consulting Group showed
that IN 2015 around 75% of transactions in India were cash-
based while in developed countries like USA, Japan, France,
Germany etc. it was just around 20-25%.
Inequalities between number of cards and card holders
ATM cards are mainly used in withdrawal purpose.
14. CHANGING TRENDS
• Cash is all set to lose currency in India, as an explosion in
smartphone usage is driving a digital payments boom.
• By 2020, nearly $500 billion worth of transactions in India will
happen digitally via online wallets and other digital-payment
systems which is 10 times the level currently, according to a
report by Google India and The Boston Consulting Group.
• Further, the reports reveals that Indian consumers, are 90% as
likely, to use digital payments for both online as well as offline
transactions. Over 60% of digital payments value will be
contributed by offline points of sale such as unorganized
retail, eateries, transport etc.
• Personal net banking has become more popular in India off
late along with digital payment options that allow users to pay
mobile phone, electricity and even taxi bills
15. Reference
https://byjus.com/free-ias-prep/issues-in-news/Turning India into a
‘Cashless Economy’ – A feasibility report
https://www.bcg.com/en-in/d/press/25July2016-digital-payments-
2020-making-500-billion-ecosystem-in-india-39417
Tawade, Pradeep, Future And Scope of Cashless Economy In India
https://www.livemint.com/Opinion/XGbavEnoeP7dzitDXEHIT21mrm/M
akingIndiacashleshEconomy.html