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Certificate
This is to certify that Vivek Jain , student of Shri Vaishnav Academy,
Indore have completed there project on ...
acknowledgements
I Vivek Jain, student of Shri Vaishnav Academy, Indore thank Bal
Vigyan And Ryan International School for...
Contents
 Introduction
• Problems with Current Indian Economy
• A Digital Economy
 A Cashless Economy: How Does it Work?...
Contents
 Limits And Disadvantages
 Solutions Always Exist
 Practical Examples
• Kenya
• Sweden
• Somaliland
• South Ko...
introduction
Problems with Current Indian Economy:
• The modern Indian Economy is quiet fragile and
unstable.
• A lot of B...
introduction
A Digital Economy:-
• A Digital Economy is one where purchases and
transactions are done mainly by electronic...
A cashless economy:
How does it work?
A Cashless Economy!
How does it work???Mode of Depositing:
Users are issued with a c...
Simply by inserting the card into a revaluation
terminal and following the instructions given,
money is added onto the ele...
Way of Paying Money:
The card then replaces your wallet or purse
when paying for goods at both vending and
catering facili...
Card readers are installed
at all Points of Sale (e.g.
vending machines,
Restaurant tills, coffee bar till, staff shops). ...
New Taxation System
If this economic system
exists, govt. Can charge
tax on every transaction.
Even a tax of 1-5% of the
t...
Working of new system
Every individual is required to have bank
accounts. These accounts would operate on
Internet Banking...
Receiver
Taxes To The
Government
Payer
Electronic Transfer
Deduction of 1-5%
Working Of The New System
Advantages
• As the economy is cashless, a lot of paper will
be saved that would have been used for
making currency. This ...
• Many crimes like corruption, kidnapping and
extortion require cash. In a cashless economy,
no such crimes would have the...
As a computer would be looking at transactions
and charging the tax, A lot of government
revenue will be saved as there wo...
• As the entire money is digital, no terms like
Black Money, Green Money would exist. No
tax would be stolen as tax would ...
• Many problems of people would be solved as
their would be one tax scheme. People will no
more have to worry for differen...
Limitations and Disadvantages
• For this system to work, there should be
registered bank accounts of every person.
India i...
• A Digital System means a lot of power
(electricity) is required for this system. India
still faces a lot of power shorta...
• For this system to work, one of the foundation
requirements is that every citizen is literate. In
India Kerela is the on...
• The greatest harm to this economy is hackers.
If somehow the economic system is hacked,
hackers can do every possible th...
Solutions always exist
• Even if people are not literate, they can learn
to operate the electronic purse.
• Hacking problem can be solved by ideas like
one time passwords(OTPs) and security can be
made more difficult to cross.
•...
• Once the economic system comes into
existence, more and more people would join
this system, given its advantages. Awaren...
Practical examples
Following countries have practically applied this
new economic system:
Kenya
• The biggest African user...
• As of January 1, 2013, no more new Canadian currency
is being printed. Why? Firstly, there has been a
decrease in demand...
• Though one of Africa's poorest countries, a
mobile revolution has created an informal
electronic banking system with mor...
Australia
Singapore
Hong
Kong
US
Nigeria
The Problems That exist in modern economy
would no doubt won’t exist in the new
cashless economy. But as it is clear, the
...
• Google.com
• Wikipedia.org
• Enchantedlearning.com
• Google Images
• Teachers
• Social Media
• Noblesearch.com
Digital economy
Digital economy
Digital economy
Digital economy
Digital economy
Digital economy
Digital economy
Digital economy
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Digital economy

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Cashless Economy; New Taxation System; Advantages

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Digital economy

  1. 1. Certificate This is to certify that Vivek Jain , student of Shri Vaishnav Academy, Indore have completed there project on “Digital cashless economy” of Senior Bal Vigyan in the year 2015-16.This project is their original bonafide work carried out by them under our guidance. They worked sincerely and have given a satisfactory work in the project. Mr. H.C.Tiwari (Principal) Date:- 10-07-16 Place:- INDORE
  2. 2. acknowledgements I Vivek Jain, student of Shri Vaishnav Academy, Indore thank Bal Vigyan And Ryan International School for giving us this opportunity to present ourselves on this platform. Presented by:- Vivek Jain
  3. 3. Contents  Introduction • Problems with Current Indian Economy • A Digital Economy  A Cashless Economy: How Does it Work? • Mode of Depositing • Way of Payment  A New Taxation System  Working of The New System  Advantages
  4. 4. Contents  Limits And Disadvantages  Solutions Always Exist  Practical Examples • Kenya • Sweden • Somaliland • South Korea • Some Other Examples  Conclusion  Bibliography
  5. 5. introduction Problems with Current Indian Economy: • The modern Indian Economy is quiet fragile and unstable. • A lot of Black Money exist in our Economy. The amount is greater than what are pending loans on India. • So much taxes exist that it is tough to even name them all. • The country of 100 crores is run by the taxes of just 3 crores. This means that the taxation is improper.
  6. 6. introduction A Digital Economy:- • A Digital Economy is one where purchases and transactions are done mainly by electronic means and cash is seldom used. • As Cash is seldom used, it can also be called as a “Cashless Economy”. • This idea is new coming and only exists in a few countries.
  7. 7. A cashless economy: How does it work? A Cashless Economy! How does it work???Mode of Depositing: Users are issued with a card called Electronic purse . The electronic purse is topped up Using revaluation terminals. A range of terminals are Now Available including coin & note, Credit Card or payroll deduction terminal.
  8. 8. Simply by inserting the card into a revaluation terminal and following the instructions given, money is added onto the electronic purse on the card.
  9. 9. Way of Paying Money: The card then replaces your wallet or purse when paying for goods at both vending and catering facilities. .
  10. 10. Card readers are installed at all Points of Sale (e.g. vending machines, Restaurant tills, coffee bar till, staff shops). Instead of juggling with cash at the Point of Sale, the card is inserted into the reader and the total sum of the purchase is quickly and accurately deducted from the card.
  11. 11. New Taxation System If this economic system exists, govt. Can charge tax on every transaction. Even a tax of 1-5% of the tax would provide the govt. a revenue which is more than what it gets now. A Single Tax Scheme thus would be generated. And no Tax can be stolen.
  12. 12. Working of new system Every individual is required to have bank accounts. These accounts would operate on Internet Banking and other digital forms. Since almost no cash would exist, people will use digital cash for their everyday transaction. Once a transaction is made, government can charge tax on the transaction. And the successful transaction would occur.
  13. 13. Receiver Taxes To The Government Payer Electronic Transfer Deduction of 1-5% Working Of The New System
  14. 14. Advantages • As the economy is cashless, a lot of paper will be saved that would have been used for making currency. This would be a great step to sustainable development.
  15. 15. • Many crimes like corruption, kidnapping and extortion require cash. In a cashless economy, no such crimes would have their existence.
  16. 16. As a computer would be looking at transactions and charging the tax, A lot of government revenue will be saved as there would be no need of departments like Income Tax, Excise Duty etc. In short, there will be no need of Indian Revenue Services.
  17. 17. • As the entire money is digital, no terms like Black Money, Green Money would exist. No tax would be stolen as tax would be directly charged at the time of transaction itself.
  18. 18. • Many problems of people would be solved as their would be one tax scheme. People will no more have to worry for different kinds of taxes. • Now everybody would be charged tax. There would not be anyone left who could say that he doesn’t pay tax.
  19. 19. Limitations and Disadvantages • For this system to work, there should be registered bank accounts of every person. India is lagging a lot in this aspect.
  20. 20. • A Digital System means a lot of power (electricity) is required for this system. India still faces a lot of power shortages. After this system, power requirements would be increased to almost twice of what it is now.
  21. 21. • For this system to work, one of the foundation requirements is that every citizen is literate. In India Kerela is the only such state. • It is required that every shopkeeper, vendor, taxi driver should have machines and gadgets to accept the transaction.
  22. 22. • The greatest harm to this economy is hackers. If somehow the economic system is hacked, hackers can do every possible thing. Any one can become rich from rag or rag from rich in just a few seconds.
  23. 23. Solutions always exist • Even if people are not literate, they can learn to operate the electronic purse.
  24. 24. • Hacking problem can be solved by ideas like one time passwords(OTPs) and security can be made more difficult to cross. • All the locales would install the required machines to accept transaction as the necessary change generates itself.
  25. 25. • Once the economic system comes into existence, more and more people would join this system, given its advantages. Awareness would compel them to open up with bank accounts.
  26. 26. Practical examples Following countries have practically applied this new economic system: Kenya • The biggest African user of mobile money is Kenya, where there are 15 million subscribers to M-Pesa. Though originally a method to send money home from cities to families in rural areas, M-Pesa is widely used for many things from receiving salaries, to paying bills and school fees, slowly making cash obsolete.
  27. 27. • As of January 1, 2013, no more new Canadian currency is being printed. Why? Firstly, there has been a decrease in demand for new bills. • Secondly, the plastic bills have a longer life expectancy. The biggest reason: a push toward driving a cashless future. According to a poll by PayPal Canada, 56% of Canadians already would prefer to use a digital wallet than cash. Also, Canada is a world leader in plastic payment, where payment by credit, debit and bank cards is almost 70 per cent compared to a world average of 40 per cent.
  28. 28. • Though one of Africa's poorest countries, a mobile revolution has created an informal electronic banking system with more efficiency and convenience than many far more developed countries in the world. • Cash is disappearing and there is no need for credit cards because even street vendors accept payments by mobile phones. A survey in 2012 found that the average customer made 34 transactions per month on their mobile phone higher than almost anywhere in the world.
  29. 29. Australia Singapore Hong Kong US Nigeria
  30. 30. The Problems That exist in modern economy would no doubt won’t exist in the new cashless economy. But as it is clear, the proposed economic system will also come with some of its own small problems. As it is said: “Change is the only Constant thing in the world”, its looking like that the time has come for us to shift from modern economic system to the new economic system. This change is required now and will soon become a necessity
  31. 31. • Google.com • Wikipedia.org • Enchantedlearning.com • Google Images • Teachers • Social Media • Noblesearch.com

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