Write an article on cashless transactions" recently launched by the govt.of india in about 150-200 words.
Answers
A cashless economy is one where notes or physical currency is not in circulation. All the financial transactions are carried out through credit or debit cards, virtual wallets, NEFT, RTGS or other electronic fund transfers.
Our current Prime Minister, Shri Narendra Modi, took the whole world by surprise when he announced on 8 November 2016 that the currency notes of denominations Rs.1,000 and Rs.500 were no longer legal tender.
What was seen as a move towards checking the menace of black money in the country, soon paved the way for India’s push to becoming a cashless economy.
“Paperless, Cashless” is one of the goals of Digital India. Numerous benefits have been associated with transforming India into a cashless society. Some of the major advantages include:
Brings transparency into the system.
Helps to fight against corruption.
Will increase the tax base.
Reduces costs incurred on the minting of coins and printing paper notes.
Cashless transactions are faster and secure.
Lower transaction costs.
A boost to the country’s Economic Growth.
The biggest advantage of cashless India is in the promotion of Financial Inclusion of the people.
1.Brings transparency into the system.
2.Helps to fight against corruption.
3.Will increase the tax base.
4.Reduces costs incurred on the minting of coins and printing paper notes.
5.Cashless transactions are faster and secure.
6.Lower transaction costs.
7.A boost to the country’s Economic Growth.
8.The biggest advantage of cashless India is in the promotion of Financial Inclusion of the people.
Essay on Cashless Economy: Meaning, Advantages and Disadvantages
Meaning of Cashless Economy
Cashless Economy refers to a situation where there is a negligible flow of cash within an economy, and all transactions are settled digitally. This is achieved through extensive use of digital payment channels such as NEFT (National Electronic Funds Transfer), RTGS (Real Time Gross Settlement), credit and debit cards, digital wallets, IMPS (Immediate Payment Service), etc.
Our Indian Economy has mostly been dependent on paper currency since ages. However, the current Indian Government has seriously been trying to make India a cashless economy. Demonetization was a big step in this direction and significantly promoted the use of digital payment channels over the traditional paper currency.
There are numerous advantages and disadvantages to having a cashless economy. In this article, we will take a look at both of them.
Advantages of cashless economy:
No need to carry your wallet anymore.
Puts a lid on black money.
Saves time.
Hassle-free.
Disadvantages of cashless economy:
There still are millions who don’t have a bank account of their own.
Many small retailers deal in cash only as they don’t have the necessary insight or the affordability to invest in digital payment systems.
Lack of financial awareness among the masses.
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