A cashless economy refers to a system where financial transactions are conducted digitally rather than with physical currency. Several countries have moved significantly towards cashless systems in recent decades as electronic banking and digital payment methods like credit cards, debit cards, and mobile wallets have grown in popularity. While a cashless system provides benefits like convenience, transparency, and security, it also presents disadvantages like privacy concerns, technological dependence, and the risk of hacking or fraud. Many governments and central banks are actively promoting policies to further encourage cashless transactions.

1. CASHLESSECONOMY

2. Cashless
economy
A cashless society describes the
economic state whereby financial
transactions are not concluded with
money in the form of physical
banknotes or coins, but rather through
the transfer of digital information
through the transaction parties.
Cashless societies have existed, based
on barter and other methods of
exchange and cashless transaction
have also become possible using
digital currencies such as bitcoin.

3. History
cash transaction and settlement
began in daily life during the
1990s, when electronic banking
become popular.
By 2010s digital payment methods
were widespread in many
countries.
By 2016 in the United Kingdom it
was repeated that in 1 in 7 people
no longer carry or use cash.
By 2017 digital payment method
such as venom and square
contribute to the cashless

4. Advantages
Efficient and
convenient
Increased
transparency
Government bodies
Easy tracking
Businesses

5. Disadvantages
The issue of privacy
Exclusion of certain
population
Breaching / hacking of
the system
Technological
dependency
Identification fraud

6. Various
non-cash
payment
methods
Debit Card
Credit card
Mobile Banking
PayTM
Bank transfer
A cheque

7. Charge Card
Prepaid or Stored
Value Cash
Direct Debit or Direct
Withdrawal
A Giro Transfer
Online banking e-
payment

8. Effects of
demonetisatio
n
 Against the backdrop of
demonetization exercise that shoots
up the Indian economy last
November, there is a major tussle
brewing in the consumer banking
space in India.
 Demonetisation arguably the most
important trigger of this race, was an
involuntary exercise that the country
underwent overnight.
 The two largest currency
denominations the INR 1000 notes
were declared along with the INR 500
notes were made unvalued. Also, new
INR 500 and INR 2000 came into
existence as valued by the RBI.

9. Role of
RBI
card, wallet are some noncash
payment methods introduced
by the RBI.
Introduced mobile banking to
everyone including farmers.
The government has launched
a UPI, a digital currency
which makes electric
transaction much simple and
faster.
Promotion of e-commerce by

10. Countries
going
Cashless
of the countries which follow the
aspect or cashless economy more
than the other countries.
UK, Sweden, Australia,
Netherlands, US also have a high
rate of the digital transaction
taking place but most people prefer
cash for their day to day purpose.
India as a developing country has
adopted the measure of the
cashless economy but due to its
diversity, it is logging.