India toards cashless economy
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This document summarizes a presentation given by Parishma Dutta and Shahab Khan on the topic of a cashless economy in India. It defines a cashless economy as one where transactions are done digitally rather than with physical currency. The Digital India program aims to transform India into a digitized society and economy. The presentation outlines the history and growth of digital payments in India such as ATMs, debit/credit cards, mobile wallets, and the Unified Payments Interface (UPI). It discusses the benefits of a cashless economy for the Indian government and citizens, as well as some challenges in fully implementing a cashless system given India's traditional reliance on cash. Recent trends show rapid growth in digital payments driven by
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India toards cashless economy
- 1. PRESENTORS: PARISHMA DUTTA SHAHAB KHAN MBA 1ST SEM Depertment of management NORTH-EASTERN HILL UNIVERSITY
- 2. What is Cashless Economy? A cashless economy is one in which all the transactions are done using cards or digital means. The circulation of physical currency is minimal. A cashless economy runs on credit or debit cards, electronic funds transfer, or online shopping instead of cash. The Digital India programme is a flagship programme of the Government of India with a vision to transform India into a digitally empowered society and knowledge economy. “Faceless, Paperless, Cashless” is one of the professed roles of Digital India.
- 3. OBJECTIVES •To study about the emergence of the concept ‘cashless’ in India •To find out how cashless is beneficial to Indian people •To study about the possible challenges while implementing the cashless mode
- 4. •Chakravarthi Rangarajan headed a committee which recommended ATM in India. HSBC (Hongkong and Shanghai Banking Corporation) was the first bank to introduce the ATM concept in India in 1987. •2004: ATM Charge waived •2004: RTGS introduced •2005: NEFT launched •2006: India’s first E-wallet ‘WALLET365’ launched • 2010 : Launch of IMPS #Recent- UPI, AEPS, MICRO ATMs, POS, Mobile Banking, Banks Pre-Paid Cards
- 5. Banking cards (Debit/Credit Cards) Banks Prepaid cards Internet banking USSD Mobile wallets Mobile banking Point of sale Micro ATMs AEPS UPI RECENT DIGITAL PAYMENTS MODES
- 6. DIGITAL INDIA CASHLESS INDIIA DEMONETIZATION GOVERNMENT INNITIATIVE ‘BHIM’ APPLICATION
- 7. Advantages to Economy • Tackling Black Money • Circulation of Fake Currency notes can be curbed • A cashless economy will help reduce corruption • Increase Tax base: It is difficult to avoid the proper payment of due taxes in a cashless society, such violations are likely to be greatly reduced • Increased tax base would result in greater revenue for the state and greater amount available to fund the welfare programmes • It will eliminate the risks associated with carrying and transporting huge amounts of cash
- 8. oSaves Money and Time: oLess Cash Decreased Crimes oAvoid risk of carring cash oFreedom in case of change in odd cash transactions oFake currency can be avoided oTracking of transections is possible
- 10. • India’s reliance on cash Indian economy is primarily to be driven by the use of cash and less than 5% of all payments happen electronically. Indians traditionally prefer to spend and save in cash and a vast majority of the more-than 1.2 billion population doesn’t even have a bank account. A report by Google India and Boston Consulting Group showed that IN 2015 around 75% of transactions in India were cash- based while in developed countries like USA, Japan, France, Germany etc. it was just around 20-25%. Inequalities between number of cards and card holders ATM cards are mainly used in withdrawal purpose.
- 11. India’s Cash to GDP ratio
- 14. CHANGING TRENDS • Cash is all set to lose currency in India, as an explosion in smartphone usage is driving a digital payments boom. • By 2020, nearly $500 billion worth of transactions in India will happen digitally via online wallets and other digital-payment systems which is 10 times the level currently, according to a report by Google India and The Boston Consulting Group. • Further, the reports reveals that Indian consumers, are 90% as likely, to use digital payments for both online as well as offline transactions. Over 60% of digital payments value will be contributed by offline points of sale such as unorganized retail, eateries, transport etc. • Personal net banking has become more popular in India off late along with digital payment options that allow users to pay mobile phone, electricity and even taxi bills
- 15. Reference https://byjus.com/free-ias-prep/issues-in-news/Turning India into a ‘Cashless Economy’ – A feasibility report https://www.bcg.com/en-in/d/press/25July2016-digital-payments- 2020-making-500-billion-ecosystem-in-india-39417 Tawade, Pradeep, Future And Scope of Cashless Economy In India https://www.livemint.com/Opinion/XGbavEnoeP7dzitDXEHIT21mrm/M akingIndiacashleshEconomy.html
- 16. THANK U