This document discusses India's transition to a cashless society through currency demonetization. It outlines what a cashless society entails, the major drawbacks of cash, and challenges to implementing a cashless payment system. It also details how demonetization has boosted cashless payments in India by necessity, with companies like Paytm seeing major increases in digital transactions. However, moving to a fully cashless economy still faces constraints like lack of banking access, internet connectivity issues, and cost barriers to digital payment infrastructure for merchants.

1. PRESENTATION
On
Cash Less India

2. WHAT IS A CASHLESS SOCIETY?
No paper money or coins
Everything is electronic
Payment via E-wallets
EFT- Electronic Funds Transfer
Smart Cards
Fingerprints

3. MAJOR DRAWBACKS OF CASH
At an individual level, cash is inconvenient to carry and manage. It cannot
be traced or insured as cash once lost or stolen cannot be recovered.
Cash is expensive to print, inspect, move, store and guard.
Counterfeiting is always going to be a problem as long as paper currency
exists.
Hand-to-hand currency is favoured by criminals as it does not leave a
paper trail.

4. FEW CHALLENGES TO CASHLESS SYSTEM
People still rely on the idea of money being ‘physically’
realisable. For some psychological reason, ‘paper’
money is revered more than ‘plastic’ money or ‘digital’
money. Cash keeps a check on people’s spending
habits.
Anything that’s technological comes with a baggage of
risks and security threats. A very high and
unbreachable degree of security would be needed as a
deterrent to hackers and cyber criminals.

5. HOW TO REMOVE ALL THE CASH FROM THE ECONOMY?
So a full restriction on the use of cash could be seen
as a limiting version of mildly extreme policies that
tax currency by allowing it’s value to depreciate
relative to bank reserves.
When the exchange rate between currency and
reserves becomes large enough, cash in the
economy would cease to exist.

6. COST OF PRINTING CASH
According to RTI reply by RBI
Before demonetization, India’s 86% cash was in the form of 1000 and
500 notes.
It cost the central bank Rs. 3,917 crore to print Rs. 500 notes in
circulation, and Rs. 2,000 crore to print the Rs. 1,000 notes in
Denomination Cost of printing(rs)
2000 4.72
1000(Old) 4.06
500(Old) 3.58
50 1.80
20 1.5
5 .50

7. 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.
Recent demonetization will help to reduce black money which is in a cash
form.

8. CASHLESS ECONOMY BOOSTED BY
CURRENCY DEMONETIZATION.
This move deeply impacts the working sections of society:
drivers, maids, cooks, electricians, plumbers.
Anybody who provides services in the informal sector and
depends on monthly or bi-monthly cash payments.
NO CASH- scenario boosted cashless payments in last two
weeks.

9. PAYTM AT HIGH
Paytm, India’s largest mobile payments company and an e-commerce
platform, has said that post demonetization of Rs.500 and Rs.1000
notes, it has touched a record five million transactions a day, against
Rs.2.5-3 million transactions earlier.
Paytm has touched a record 5 million transactions a day and is on the way
to process over Rs.24,000 crore.
The company said it had registered a 700 per cent increase in overall
traffic and 1,000 per cent growth in the amount of money added to the
Paytm accounts over the last couple of weeks.

10. Over 8,50,000 offline merchants across India
accept
Paytm.
The highest increase in usage was seen in
Chennai,
followed by Ahmedabad, Hyderabad, Kolkata
and
Bangalore.

11. CONSTRAINS FOR CASHLESS ECONOMY
• Lack of access to banking.
• Card swipe machines are costly as 7000Rs to 25000Rs.
• According to data available with MasterCard and Visa, some 14 lakh
merchants across India accept cards.
• Internet is not accessible for every Indian.
• Only 34.8% of total population have access to internet.(Even after digital
India campaign)
• 6 out of 10 transactions fails because of low speed on 2G connectivity.

12. THANK
YOU!
By- Pulkit tayal