Cashless Economy is the economy which can be defined as a situation in which the flow of cash in an economy is not done, and all the transaction of the economy is done by the electronic ways.
The transactions of the economy through the electronic way is done by the credit card, debit card and another payment system such as Immediate Payment Service or the National Electronic Fund Transfer.
By these cashless ways, money can get easily transferred.
Types Of Payments
The payments of the cash are done through the mobile wallet. In the mobile wallet, you can store the cash as it is mainly a virtual wallet.
Through mobile wallet, you can easily do online or offline payments. Various services and different types of apps are available on the mobile phone that can use for mobile payments.
Through mobile payments, you can pay any bills, and for paying you not need to swipe any card, one can directly pay the amount through the mobile transfer apps.
There are also many other ways of transfer of cash such as plastic money, and another is net banking. In plastic money, the debt, credit and prepaid cards are used to withdraw money from ATM.
In net banking, it does not have any use of cards or apps it can directly transfer money from one bank to another bank easily.
Advantages Of Cashless Economy
The main advantage of the cashless economy in the society is that there will be all the proof of the transaction that has been done.
This cashless economy technique is also used to tackle the main problem of black money.
By this, it can provide the damaging of the national economy and also can able to sustain the underground markets
There is also the main problem of duplicate notes, so by this method, this problem could also get solved easily. It can also help to reduce the problem of corruption.
This process has made transparency in the economy. By this, the money that is wasted on making notes and to move the notes can also be solved.
It can handle the pressure of transferring the huge amount of cash by transferring the cash through mobiles at a time.
Challenges For Cashless Economy
For a society to be cashless and to use the money transfer through the electronic ways, there should be proper maintenance of the machines, and the infrastructure and the internet connectivity should be proper.
The main challenge to make a cashless society is that the citizens, not every citizen in the society are used to the electronic method, so because of this, they will not be able to transfer money through electronic ways.
There should be proper cybersecurity provide to the cash that has been transferred.
Everyone should change their habitats and start to learn to do the electronic transfer methods as it can be easily able for them to transfer.
Transferring money through the mobile is a very easy way, but for this, a good connection of the internet is required in all areas and even in the areas where there are many of the networks.
A cashless economy is a very easy way of transferring cash and India has also been using this method and transfer their cash in a proper way.
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