What Do You Mean By Cashless Economy?

Cash has been the most important aspect in our lives which helps us in buying goods and services we want. This type of currency has been used thousands of years ago and is still used. Physical currency has a lot of liquidity that enables the person to buy without any real restrictions.

What is Cashless Economy?

A Cashless economy is the phase used when the country uses the digital means to transfer payments to each other account instead of the physical cash or coins Cashless economy help the country to keep the cash flow and increases the growth of the country. India being the cash dominant country is now developing the infrastructure to accept the Digital means of payment which in turn acting as a fuel to the country growth. Demonetization is one of the best moves by Modi government that made the digital means popular among the citizen also the internet speed increase from 3G to 4G for affordable rates is another reason.

Benefit of Cashless Economy

Cashless economy provides a lot of benefit that are as follows-

·         It contributes in country growth

·         It prevents tax evasion

·         It helps in keeping the money in the banking system which increases the loan and also affects the inflations rate at some level.

Drawback of Cashless Economy

There are also some drawbacks of the Cashless Economy and are as follows-

·         Bank account or digital wallet is mandatory for which you need to have a device with internet

·         Liquidity is limited to the account transfer limit available to your account

·         For every transaction you need to pay some fee which makes it costly

How India can become Cash less Economy?

India has taken some necessary steps to make the economy cashless which made the country global superpower dream a boost. International markets have seen the potential of the Indian market and the Indian consumer which made the country reputation and dominance in the global market a established component.

Component of Cashless Economy

Mobile Banking and Internet Banking

Mobile banking is a banking that enables the use of banking service by using the mobile device with internet connection. It provides a lot of services like Bank Account balance check facility, fund transfer etc. Internet Banking is different in terms of the usability meaning Net banking provides all the service that the bank offers whereas the Mobile banking provides a limited access to the service.

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