Question

What is cash less transaction ? Describe 3 modes of cash less transaction.

Answer 1

Exchange of money takes place via cheque, RTGS, NEFT, IMPS, demand draft, debit card, credit card or through UPI. Electronic means of exchange in money stated the revolution of cashless transaction



Mobile wallet: This is basically a virtual wallet available on your mobile phone. You can store cash on the mobile to make online or offline payments. Various service providers offer these wallets via mobile apps, which you need to download on the phone. You can transfer the money into these wallets online using credit/debit card or Net banking. This means that every time you pay a bill or buy online via the wallet, you won’t have to furnish your card details. You can use these to pay fees, bills and make online purchases.


Plastic money: This includes credit, debit and prepaid cards. The latter can be issued by banks or non-banks and can be physical or virtual. These can be bought and recharged online via Net banking and can be used to make online or point-of-sale purchases, even given as gift cards.


Net banking: This does not involve any wallet and is simply a method of online transfer of funds from your bank account to another bank account, credit card, or a third party. You can do it through a computer or mobile phone. Log in to your bank account on the Net and transfer money via national electronic funds transfer (NEFT), real-time gross settlement (RTGS) or immediate payment service (IMPS), all of which come at a nominal cost ranging from Rs 5-55.

Answer 2

cash less transaction doesn't include the actual currency whi buying or selling an item
credit cards, atm etc are the examples
also in ancient times we hear that people use to buy a food item in exchange of another food item that can also be considered as a method of cashless transaction