The document discusses the benefits and challenges of moving to a cashless economy in India. It notes that demonetization in India helped reduce black money held in cash form, but some black money is still kept in gold, real estate, and cash. A cashless economy would involve all electronic payments instead of cash or checks. This could help reduce illegal activities that use cash but may also raise security and privacy concerns. The document outlines various electronic payment methods like e-wallets, debit/credit cards, digital currencies, and their benefits and risks in a cashless system.

1. Cashless Economy
Sovin K Thomas

2. Black money
• People intentionally do transaction in cash to save income tax.
• All illegal activates like money laundering, kidnapping, Bribe to
government officers, terrorist activities consummate in cash
payments.
• Indian companies are reportedly misusing NGO and public trust for
money laundering.
• Generally people convert their black money into Gold and real estate.
• Still 8% of total black money is in cash.
• Recent demonetization will help to reduce black money which is in a
cash form.

3. Payment: The transfer of money from one individual or legal
entity to another
 Cash
 Personal Cheques
 Money orders (Bank note)
Traditional Payment Methods

4. 2001 4
Selection of Payment Method
 Based on:
 Convenience
 Trace-ability
 Repudiation
 Financial risk
 Fraud protection

5. What is a Cashless Society?
• No paper money or coins
• Everything is electronic
• Payment via E-wallets
• EFT- Electronic Funds Transfer
• EPS – Electronic Payment System
• Microchips/Smart Cards

6. Impacts of a Cashless Society
 Transition process
 Education process
 Economic implications
 Universal acceptance
 What’s next?

7. Security Benefits
 Electronic means of recognition
 Verification records of all transactions
 Computer errors are far less common than human
errors

8. Security Risks
 Misuse of technology
 Potential for a new crime frontier
 Less regulation and scrutiny


9. Cashless Controversies
 Much less privacy
 Wasteful spending
 People taking on more debt
 Bad for those who are reliant on cash

10. Various E-Payment Methods
 Credit and Debit card
 Digital Currency
 E-Wallets
 Peer-to-Peer Methods
 Smart card
 Micro-payments
 B2B
•
2001

11. Credit/Debit Card
 The most popular payment method
 Cards are issued by a bank
 Unique 16-digit number (including check digits) and an expiration
date
 Third party authorization companies verify purchases
•
2001

15. E-Wallets
 Established by financial institutions in partnership with member E-
Commerce sites
 Allows customer to submit billing and shipping info with one click at member
sites
 Also can store e-Cheques, e-Cash and credit card information
 Not as popular as originally projected
 Entrypoint’s InfoGate offers an e-wallet

2001

28. THANK YOU
Sovin K Thomas