SDS badamia college of professional studies , varkana

SDS badamia college of professional studies , varkanaDemonetization And Cashless Economy

SHIV SAGARBCA FINAL YEAR

ContentsDemonetizationAdvantageDisadvantageCashless EconomyAdvantageDisadvantageMethods of cashless transactionBank Cards like Credit card, Debit Cards etc.USSD Unstructured Supplementary Service DataAEPS --- Adhar Card Enable payment System UPI --- Unified payment InterfaceE---WalletsA Small poem

DemonetizationDemonetizationis the act of stripping a currency unit of its status as legal tender.Demonetizationis necessary whenever there is a change of national currency. The old unit of currency must be retired and replaced with a new currency unit.Demonetization for us means thatReserve Bank of Indiahas withdrawn the old Rs. 500 and Rs. 1000 notes as a official mode of payment. According to Investopedia, demonetization is the act of stripping a currency unit of its status as legal tender.

What was the reason?

The reasoning given by PM Mr. Modi was:

1) To tackle black money in theeconomy.

2) To lower the cash circulation in the country which "is directly related to corruption in our country, " according to PM Modi.

3) To eliminate fake currency and dodgy funds which have been used by terror groups to fund terrorism in India.

4) The move is estimated to scoop out more than more than Rs 5 lakh crore black money from the economy, according to Baba Ramdev, a staunch Modi supporter.

AdvantageMainAdvantages of demonetization of the 500 & 1000 Rs. NotesIt will help to control the Black money in India.It will help to stop the funding of Terrorist. This is wow demonetization advantages.It will totally clear the Fake currency from India Now.This will also make sure to circulate all your money of 500 and 1000 note to Bank.This will also make tendency of using Plastic Money which makes economy better.People will now Open Bank Accounts and also make Identity cards. This is the Biggest Advantage of Demonetization In India.All Black money will come Out from the treasure.This will narrow the Gap of Rich and Poor with very little extent.Apart from this advantages of new notes are that this will clear all waste notes from the system.

DisadvantageMainDisadvantages of Demonetizationof 500 and 1000 rupee notesThere is Hugh rush to the banks from last many days and normal work can be hampered.Government had not alter in ATM's so there are big problems in currency Exchange.Biggest Disadvantage of Demonetization will be with tourist who have only old notes and no connections in the area.Common man who has only 500 and 1000 Currency notes will be in trouble for their daily livelihood for next some days.Many People who has event like marriage and other having only old 500 and 1000 rupee notes will be in Big problem. They are really facing the high demonetization disadvantages in India.Some people had not Information of where to exchange the Old currency notes.

There are raids by Income Tax, Sales Tax and excise which can create problem for Business.If there is a Hard earned money which is beyond the limit of 2.5 lacs can indulge you in problem. This may be a biggest Disadvantages of Demonetization of 500 and 1000 rupee notes.At some Places Banks are unable to handle the pressure of Public and the currency notes are out of stock.There will be problem of Change with 2000 rupee note. These were the some limitations of demonetization of 500 and 1000 rupee note.

Cashless EconomyA cashless economy is a system where any type of money transactions are done through digital means like debit cards, electronic fund transfer, mobile payments, internet banking, mobile wallets, and other newly evolved payment channels, this will leave very little scope for flow of hard cash in economy.

AdvantageTo avoid black money transactionsTo avoid time consuming To avoid risk It helps to economic growth It helps to increase security It helps to reduce illegal businessIt helps to avoid the threat of counterfeit currencyHelp to effective utilization of resources It help to effective transactionTo avoid criminal activities Reduces the circulation of liquid money

people using the means of e-commerce, mobile banking or Internet banking for their purchase or for their transactionEasy to handleThe transaction process and purchase will made easyHelps to eliminate counterfeit currenciesIf the government finds a person guilty government can easily block his/her transactionThe government can control the financial transactions in the societyMore transparency and easy to track money laundering and other such activitiesEnvironmental friendly

DISADVANTAGE Higher risk of identity theftLosing phoneDifficult for techOverspending Failure Rates

Methods Of Cashless TransactionThere are many Methods of Cashless Transaction Like:-Cheques , Demand Drafts etc. Cheques & Demand Drafts Mehtods are usually use where we not need to transfer money Online.Here I present Latest Cashless Transaction Methods .

Bank Cards

USSD Unstructured Supplementary Service Data(*99#)

AEPS --- Adhar Card Enable payment System

UPI --- Unified payment Interface

Some UPI Apps

E-Wallates

Some E-Wallets

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