Cashless India Essay in English
Essay on Cashless India – Digital India starts with cashless India. In this Essay on cashless India, we’ll discuss what “cashless” means, our monetary system’s alternatives, and the pros and cons of a cashless, digital economy.
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The hope for digital The first step for India is to stop using cash. With this dream in mind, the Prime Minister of India, Narendra Damodardas Modi, announced on November 8, 2016, at exactly 8 p.m., that Rs. 500 and Rs. 1000 notes would no longer be accepted in the country mean demonetization. Several things led to this historic decision, and one of them was a dream of a cashless India.
600+ Word Long Essay on Cashless India for Students
Cashless India has grown in popularity. Credit cards, debit cards, mobile payments, and digital wallets replace cash in a cashless India. Convenience, transparency, and financial inclusion are driving a cashless society.
The Indian Prime Minister, Narendra Modi, demonetized 500 and 1000 rupee notes on November 8, 2016, at 8 P.M. That historic decision had many reasons. Creating a cashless India was one reason.
People exchange physical cash for monetary transactions. Cashless India will render it obsolete. Given the COVID-19 pandemic and concerns about cash exchange, this idea has gained traction. Cashless has many benefits. Everything has pros and cons. You find ways to mitigate the drawbacks of going cashless. Just be careful. Preventing is better than treating.
Cashless India benefits
- Cashless transactions eliminate cash-carrying.
- It follows global trends. Electronic transactions mean most countries don’t require cash.
- Cashless transactions require taxes, eliminating black money.
- Cashless tax payments accelerate economic growth. It simplifies government spending on education, healthcare, and job creation.
- Taxes collected increase tax simplification.
- Bank transfers prevent middlemen from exploiting the poor.
- Cashless transactions eliminate counterfeit currency and Hawala-distributed black money. It also reduces the flow of illicit funds.
- It cuts government printing and circulation costs.
- Banks lower interest rates due to increased liquidity. However, it productively uses their massive cash deposits.
Cashless India has two major drawbacks.
Technology is increasing online cheating and fraud. In a country like India with 135 crore people, a cashless economy is impossible if the government cannot create secure, unhackable digital systems. After seeing online thefts on national news, people are still afraid to make big transactions online.
Lack of Infrastructure
It needs personal and government infrastructure. Online transactions require a device, data connectivity, and electricity to charge phones. Most rural India lacks these privileges. Before considering a cashless India, the government should fix this.
On November 8, 2016, the Indian government demonetized, shocking the nation. 500- and 1000-rupee notes were invalid. This move eliminated black money, which funded criminals and terrorists in a parallel economy. ATM and bank lines were long due to the cash shortage. This was to launch a cashless India.
Digital Payment Methods
Cashless India uses these digital payment methods:
Debit, credit, travel, cash, and other banking cards exist. Digital transactions are discounted and enhanced with the cards. Two-way authentication with a secure PIN and OTP protects the transaction (One Time Password).
Unstructured Supplementary Service Data (USSD)
This service allows basic phone financial transactions without the Internet. Interbank fund transfers, mini statements, balance inquiries, and more can be done by dialing *99#. This service empowers rural elders and people who use basic keypad phones.
Unified Payment Interface (UPI)
Unified Payment Interface manages multiple bank accounts on one platform. Download the UPI App on your smartphone and enter your account and bank details. Balance inquiries, money transfers, transaction history, and more are available.
Mobile Wallet stores money digitally. The mobile wallet app can transfer money online using credit or debit cards. Mobile wallets allow financial transactions without debit or credit cards.
Point of Sale (POS) Device
Merchants use small, cordless point-of-sale devices to process financial transactions. The device prints a receipt after customers swipe their credit/debit cards and enter a PIN.
Business correspondents or small shop owners use micro ATMs to make instant customer transactions. It allows instant deposits and withdrawals from several banks nationwide. Here, business correspondents are banks.
We’ve been asked to be less social lately. Covid-19 communicable diseases have harmed India. Online payments are the most popular because of this. You only need to download the app to transfer money from our account to yours.
Demonetization was essential to starting a cashless economy. It led to a more transparent and convenient Indian economy.
200+ Word Short Essay on Cashless India for Students
A cashless economy requires online and limited cash transactions. The Indian government launched a cashless India to make India a cashless economy. Going cashless has pros and cons.
Advantages of Cashless:
- Paytm, Google Pay, UPI, and others make smartphone transactions easy. Fast and simple.
- No theft risks—Cashless transactions eliminate the need to carry cash. This reduces theft.
- Eco-friendly – Cashless transactions reduce currency printing costs. This eco-friendly initiative encourages paper efficiency.
- Exciting discounts – Debit/credit card and online transactions offer good cashback and offers.
- Cashless transactions reduce corruption because they can be traced. It will reduce bribery and black money in India.
Disadvantages of Cashless:
- Online fraud and cheating are risks of online transactions. Many online fraud victims fear online transactions. For safe digital transactions, the government must implement a high-security check. Otherwise, India will never become cashless.
- Illiteracy and poverty in India – Rural people cannot use smartphones. Without solving these issues, this mission is hard.
A cashless India could benefit the economy and society. A cashless economy could boost economic growth and improve millions of lives by reducing corruption, promoting financial inclusion, and improving convenience and efficiency.
This goal will require government, private sector, and individual investment and effort. However, a cashless India is possible in the coming years with enough effort.