Sakshi

Praj
apat
iTYBMS-38

Di
git
alI
ndi
a-Awayf
orwar
dfr
om Casht
oCashl
essEconomy

I
ntr
oduct
ion

“CASH,”amagi calterm,hasbeenet chedinev eryIndi

anci t
izen’smi ndsf r
om ancient
times,andst il
l,iti
si ndemand.I ntoday’swor l
d,everyIndi ancust omermusthav ethe
optiont opayel ectr
onically,usingmobi l
edev i
ces,laptops,andot herdev ices,anditis
essentialtoboostt hecount r
y’scountryasacashl esseconomyt hrought echnol
ogy .
Thecont ri
buti
onofcashi nt hecontextoftheI ndianeconomyhaspl ayedav i
talr
olein
Indi
anhi stor
yi nalldi f
ferentsectors,whet heritisagr icultureandal l
iedi ndustr
ies,
biotechnology,automobi les,cement ,consumerdur abl
es,e- commer ce,transport
ation,
business,banki ng,etc.Buti tist i
met oequipi nallthesesect orswi thnew,moder n
technologiestoi nt
roducet hewor d“cashless”intothepict ure,whichmakescommer ce
faster,easier
,andmor eeffici
ent.

“Cashl essEconomy ”r eferstot hephy sicalst ream ofnat ionalexchangebei ngrepl aced
witht hedi gitalpl atformssuchasonl inet ransact i
ons,thei ntr
oduct ionofpl asti
ccar ds,
Internetbanki ng,et c.Wi ththischange,t hecur rencyisnotr estri
ctedf rom use,whet her
i
tmeanst osl owdownt heusageofcashcur rencybyut ili
zingt heappr opri
ateprocedur e.
The r ol e ofdi gitalt ransacti
ons becomes mor e promi nent;hence i tprovides an
alternativesol utiont othepopul ationf ordiffer entperspect i
ves.Ther ei sarequirement
tomov eoutoft hecashandent ert henewcashl esswor ld.Fort hat ,therearev ar i
ous
i
nitiativeslaunchedbyt heIndiangov er nment ,i .
e.,Di
gitalIndia,sot hatt heuseofcash
canber educedandf ocusondi gitalt ransact ionscoul dbei ncreasedandent ertained
i
nt ot hemi ndsoft hepeopl e.Under st andingt hescopeandi mpor tanceofCashl ess
India,iti st heI ndi angov ernment ’st oppr iorityt oaddr esst hesi gni fi
cantissuesof
cyber crimeandonl i
nef raudsot hatpeopl ear eawar eoft heireffects.Banksal sopl aya
crucialr ol
ebecauset heywi llfollowt het ransact i
ons,ast heyar er esponsi bl
eforal lt he
oper ati
ons, whet hercashorcashl esst ransact i
ons.
Ther eisanewl evelofchangei nthelatestst
age,whichweseei nmaki ngandr eceiv
ing
pay ments.Therehasbeenaconst antchangei ndailyinfr
astr
ucturalacti
vit
ies;hence,
wecanseeapol i
cychange.Ev er
yoneneedst ounder st
andt hatIndia’
sf utureisa
“cashlesseconomy ”fort hewel f
areofsociety
.Adecr easeint helevelofcashf low,or
i
tsdi sappearance,orrepl acedbypl asti
cnotescanbebr oughtori ntr
oducedi nthe
futurebyt hegov ernmentt hatistryingtobringawar enessamongt hecit
izens.The
primaryr esponse created f orint
roducing a cashl
ess economy was mai nly aft
er
demonet izat
ion,whichbecamepopul ar.

Thegov ernmenti sal sowel lconsci oust hatconsumer sar epr ogressivelyusi ngt heir
smar tphonest opayf orgoodsandser vi
ces,whi chi sast ept owar dDi gitalIndia.For
India’st ransformation,t heconsumer sneedt obeequi ppedwi t
hdi gitalknowl edge,
whi chi sknownt obet heI ndiangov ernment ’
spr incipalel ement .Thepr imar yfocusi s
onr uralIndia.Thet echnol ogyneedst obeassessedandi mplement edt omov eIndia
from casht oacashl esseconomy ,ast hereisal ackofawar enessamongpeopl es.The
maj or i
tyofI ndia’
spopul at i
onisengagedi nagriculture, sot hereisaneedt oadoptnew
measur est omov eIndi afor wardther e.Duet othepr iv
acyandsecur i
tyconcer ns,people
arescar edt omov ef rom casht ocashl esseconomyast heyf i
ndi trisky.Twot ypesof
onlinepay mentar eint roducedi nI ndia,namel y,wal l
ed- basedandUPI( Uni f
iedPay ment
Interface)-basedmedi a.Ast hegov ernmentpushesi t
sdr i
v eforacashl esseconomy ,it
backsUPI -based mobi l
epay ment sapps.Banksar eal so li
abl eto pr omot eonl i
ne
pay ment ssuchasI nt ernetbanki ng, mobi l
epay ment s,et c.Therei snoneedt ogot othe
bank,t het ransacti
onsar edonef rom homev eryqui cklyandeasi l
y .Thi spaperwi ll
anal yzet heev ol
uti
onoft hebanki ngsy st
em andi tsdev el
opmentt omakeI ndiaa
cashl esseconomywi t hf uturedigitaltransacti
ont rends.Thi sst udywi llev al
uatet heir
currentst atusoft her each,av ailabili
ty,and di sbur sementofcashl esst r
ansact i
on
awar eness.

Fueledbyt heunf or
tunateCOVI D-
19pandemic,I
ndiasaw amassi veshifttowar ds
digi
talt
ransact
ions.Thi
sisintunewitht
heprimeminist
er’
svisi
onofaDi gi
talIndia,
and
thisisthe opportune ti
me to buil
dar obusteconomyt hrough saf
e,secur e,and
accessi
bledigi
talpaymentsol
utions.

‘
Digi
tal
Indi
a’gotabi
gboostint
hefi
eldofmonetar
yt r
ansact
ionswi
tht
hegov
ernment’
s
demoneti
sat
ionmovefouryear
sago.Sincet
hen,therehasbeenamarkedi
ncreasei
n
tool
sandsol utionsav ail
ablei nthee- payment ssect or
s.TheI ndi
anconsumerhasher
choice of e- wall
ets, Uni ted Pay ment s I nterface (UPI ) sy stems, Unst ructured
Supplement arySer vi
ceDat a(USSD)ser vices,andmor e,tot ransactf i
nancial
lyonl i
ne.
Indi
ai samobi le-f
ir
stcount ry
,wi t
hlakhsofnew user sget ti
ngaccesst ot heinternet
eachmont h.At574mi ll
ion,India’
sinternetpenet rati
ongr ewat24%, t
oat otalof41%of
thepopulat i
oni n2019( I
CUBETM r eport).Thisper mitt
edbankst opr ovi
denet -
banki ng
andmobi le-bankingser vi
cest ocustomer s.Af terdemonet i
sati
on, eventradi
tionalbanks
hadbegunt oincenti
visecust omerst omakepay mentsdi gitall
yfrom theirownbank
accounts.Ast henat uralst epf or
wardf rom her e,otherplay er
shav ebegunt opr omot e
cashlesstransactionsf orindivi
dualsandbusi nessesalike.

Asciti
zensgetmor ecomf ortabl
ewi t
htheideaofmaki ngpay ment sonlineorviaanapp,
thetot
alv al
ueofdigit
alt r
ansacti
onshasal sori
sen.Forinstance,sinceitsincept
ioni n
2016,tr
ansact i
onsvi
at heUPIsy stem reachedav alueofRs2l akhcr oreattheendof
2019.Accor dingtoRazor pay’sTheEr aofRi si
ngFi nt
echr epor t(RazorpayFint ech
Report
),Indi
asawamammot hgrowthof383%i ndigit
alpay mentsbet weenFY18and
FY19.Thispr ovest
hatt heIndiandigit
altransact
ionsmar ketissett ogr ow atar apid
pace.

Digitalpayments and t he tr
ansiti
on to a cashless economy ar e al
so impor tant
milestones forIndia as we st r
ivetor each our$5- t
ri
ll
ion-economy goal.Fur t
her,
gover nmentpolicies and pri
v at
e sect
ori ni
ti
ativ
es,speci fi
call
yt o hel
pt he retai
l
tr
ansact i
onssegment ,coul
dhel pmov e30%ofr et
ailtr
ansactionstodigi
talchannelsby
2025.Thi scoul
dr angefrom promotingt
hebenef i
tsofdigit
alpay mentstoincenti
vest o
i
ncr easeadopti
on.

Cashlesstr
ansactionshave,i nfact,rev
oluti
onisedhowbusi nessisconductedinIndia.
Thesheerconv enienceoft heset r
ansactionshashel ped MSMEsi nI ndi
aexpand
customerbases.Theseor ganizat
ionscoul dgaingr eatermarketaccess,streamli
ne
operati
ons,andmov etowar dsamor etransparentpaymentchai n.Accordi
ngt othe
RazorpayFint
echRepor t,
cashdependencyhasf all
eninP2P( peer-
to-
peer)tr
ansacti
ons
i
nf avourofcardsandUPI ,andi nP2M ( person-t
o-merchant)tr
ansact
ionsinfavourof
cardsandnet-banking.

Manyst
akehol
der
spl
ayed acr
it
icalr
olei
n get
ti
ng ust
othi
spoi
nt.TheNat
ional
Pay ment s Corporati
on ofI ndia(NPCI),whi ch ov ersees elect
ronicr etai
lpay ment
sy stemsinthecount ry,creat
edaninf
rastructur
ef orpay mentsandset t
lementsinIndi
a.
Inf act,thedev elopmentoft heUPIsy stem,pay mentappl icat
ionssuchasBhar at
InterfaceforMoney( BHIM)andRuPaywer ecatalystsf orincreaseduseofdi gital
pay ment sinI ndi
a.Thi si s a gr
eatachi evementf ort he NPCI.Addi ti
onall
y,since
transferr
ingmoneydi git
allyi
snowsosi mpl e,thankst otheUPIsy stem,therearenow
sev eralpri
vateplayersint hemarketli
keGoogl ePay ,AmazonPay ,PayTm,PhonePe,
and, now, WhatsAppPay .

Themostpopul arappsareusual l
ylocat
edont hemostvaluabl
eandcont estedpieceof
realest
atei nthedigit
alwor l
d—the‘home’screenofthephone.Int heworldofintense
competiti
on, user
swillsel
f-sel
ectappsthatar
eeasyt ouseandservemult i
plepurposes.
Forexampl e,theaddit
ionofasecur epaymentplatf
ormt oapopularapplikeWhat sapp
willhel
puser schatwi ththeirnetworkandtr
ansfermoneyaswel lviaasingle,handy
app.

 ADVANTAGESANDDI
SADVANTAGESOFCASHLESSECONOMY

Cashlessisawor dwhi
chlit
eral
lymeanshavi
ngnocashbuti ntoday’
sworld,i
tref
ersto
usi
ngdi gitalf
orm ofpay
ment sinst
eadofcashf orpaymentofv ari
ousexpensesor
tr
ansactionsdonebytheindivi
dual
.Inor
dertounderst
andthister
m bett
erlet’
slookat
advantagesanddisadv
antagesofcashl
esseconomy

Adv
ant
agesofcashl
esseconomy
:

1.Thef ir
standforemostadvantageofcashl
esseconomyisthatanindiv
idualdoesnot
needt ocarrycashwi t
hhim orherev er
ywherewhichintur
nr educesthechancesof
theftfrom wall
et,reducesinconveni
enceduet o car
ryi
ngcash,gi vefreedom fr
om
problem ofchangewhent r
ansactioni
sofoddamount ,nori
skofr ecei
vingcounter
fei
t
currencyandsoon.

2.Anotherbenef i
tofcashlesseconomyi sthatiti
seasiertotr
ackt heblackmoneyand
i
ll
egaltransacti
onsbecausei fcashi suseddirect
lyf
ordoi ngt
ransactionsthanitisnot
easytot rackthet r
ansacti
onsast hemoneydoesnotcomei ntot hebankingsy st
em
howeverincaseofdi gi
taltr
ansact i
onsitiseasyt otr
ackt hetr
ansact i
onasal lr
ecords
aretherewi t
ht hebankswhi chr esulti
nmor et r
ansparenttr
ansact i
onswhi chinturn
l
eadst ofalli
ncorrupti
onint heeconomyoft hecountr
y.
3.Anot heradv ant
ageofcashl esseconomyisthatsi nceal ltr
ansacti
onswillbedone
throughor gani
zedchannelt hatisthr
oughbanksandf inanciali
nsti
tut
ionsitresul
tsin
i
ncr easeint axrevenueforthegov er
nmentasal lcasht ransacti
onswhi chweredone
i
llegall
ycomei ntobankingsy st
em whichintur
nhel pst hegov ernmentintracki
ngall
transacti
onsandl evyingtaxont hem whi
chinturncanbeusedbyt hegovernmentfor
bettermentofeconomyoft hecountry
.

Di
sadv
ant
agesofcashl
esseconomy
:

1.Thebi ggestdi
sadvantageoft hecashl esseconomyi sthatnoteverybodyhasthe
knowledgeofdoingdigi
taltransacti
onsandhencei t
sreachislimi
tedt
our banandsemi
-urbancenter
sonlyandt herefor
ei tisv er
ydiffi
cul
ttoimplementcashlesseconomyin
thebigcountrywheremanysect ionsoft hesociet
yinruralareasisi
l
li
terateandpoor.
Hence t he lack of pr oper inf rast
ructur
e and educat ion among ci t
izens i
s
disadvant
ageousasfarast hecashl esseconomyi sconcerned.

2.Anotherdi
sadvantageofthecashl
esseconomyi st
hatal t
houghiteasytododi gital
tr
ansacti
ons butatt he same ti
me itisv eryriskyas compar ed to cash rel
ated
tr
ansacti
on.Hencepeopl ehavi
nghalfknowledgeofdi git
alpaymentsareexposedt o
cyberfr
audandl osingthei
rhard-
ear
nedmoneyt oonlinescam andhacki ngofbank
accountsand hencei tisbett
erto do casht r
ansactionsr at
herthan doing di
gital
tr
ansacti
onsi
fonei snotful
lyawar
eoftheonlinemedium oft r
ansact
ions.

3.Anotherdemeritoft hecashlesseconomyi sthatdi git

almodeofpay mentslike the
credi
tcard,wall
etpay ments,internetbankinginvol
vessomet r
ansacti
onsf
eewhi chis
notthecasewi thcasht ransactionsandhenceanyi ndivi
dualthi
nki
ngofdoingonl ine
tr
ansacti
onswi l
ltakei ntoaccountt hesetransact
ioncost sandwi l
lnotf
av oronline
medium oft r
ansactions.Hencet hepr esenceoft ransactioncostisahi ndrancet o
cashl
esseconomyf indingaccept anceamongt hepeopl eofthecountr
y.

Cashl
essEconomy

CashlessEconomycanbedef i
nedasasi tuationinwhi cht hef l
ow ofcashwi t
hinan
economyi snon-existentandal lt
ransacti
onsmustbet hroughel ectr
onicchannelssuch
asdirectdebit
,creditcards,debitcards,el
ectroniccleari
ng,andpay mentsystemssuch
asI mmedi at
ePay mentSer vice,Nat i
onalEl ectr
onicFundsTr ansferandRealTi me
GrossSet t
lementinI ndia.Thepr oposalbyt hegov ernmenti nvolvestheeli
mi nati
onof
theseexist
ingnotesf rom ci
rculati
onandagr adualreplacementwi t
hanewsetofnot es.
Therearepotenti
allytwoway sinwhi chthepr e-
demonet izat
ionmoneysuppl ywillst
and
alter edi nt henewr egime:one,t herewoul dbeagent si nt heeconomywhoar ehol ding
cashwhi cht heycannotexpl ainandhencet heycannotdeposi ti nt hebanki ngsy stem.
Thi spar toft hecur rencywi llbeext ingui shedsi ncei twoul dnotber eplacedi nany
manner .Second,t hegov er
nmentmi ghtchooset or eplaceonl yapar toft hecur rency,
whi chwasi nci rcul ationascash.I nt heot herwor ds, ther estwoul dbeav ai
lableonl yas
elect roni cmoney .Thi scoul dbeamechani sm usedt of orceat ransi tiont ocashl ess
medi um ofexchange.Theset wowoul dhav edi fferentef fect sont heeconomyi nt he
shor tt erm andi nt hemedi um t erm,aswi l
lbeexpl or edbel ow.Tounder standt he
effect soft hesedi mensi ons, itisimpor t
antt of i
rstunder standwhati sitt hatcashdoes
i
nt heeconomy ,ther ear ebr oadl yfourki ndsoft ransact ionsi nt heeconomy :account ed
transact i
ons,unaccount edt ransact ions,t hoset hatbel ongt ot hei nf ormalsect orand
i
llegalt ransact ions.Thef i
rstt wocat egor i
esr elatet owhet hert ransact i
onsandt he
cor respondi ngi ncomesar er epor t
edf ort axpur posesornot .Thet hirdcat egor ywoul d
consi stl argelyofagent s who ear ni ncomes bel ow t he exempt ion t hreshol d and
ther efor edonothav eanyt axl iabi
li
t i
es.Demonet izationwi l
lr enderI ndiaont hepat hof
beingcashl esseconomy .I
twi l
lhelpt oboostt hedi git
alpay mentsy st em i nIndia,as
peopl ewi ll
bel uredt oadopte- paymentsy stems, ast hecashav ail
abi li
tywi l
l belower ed.
Giv ent hesheersi ze-t hedeci siontowi t
hdr aw85%oft hecashi nci rcul ationhast hrown
Indiai ntodi sar ray .Suchal ar geandunexpect edpol i
cychangenat ur all
ycar ri
eswi thi ta
l
ar gecol lat
er aldamageatl easti nt heshor tr un.Thi si spar ticularlyt ruef orIndiawher e
al ar gesect ionoft heeconomyi scompr isedoft hei nf ormalorunor gani zedsect or( not
regi ster edwi tht hegov ernmentandhencenotsubj ectt ot axat ion)whi chf unctionson
cashbuti snoti ll
egal .

I
SINDI
AREADYFORCASHLESSECONOMY

Yes,Indi
aisreadyforacashl esseconomyAccordingtoTelecom Regul
atoryAuthor
ity
ofIndia,
ason30Sept ember2016, 82outof100cit
izensi
nIndiaownedamobi lephone.
Theev ol
uti
onofthetelecom ecosyst
em, wi
thsi
gnif
icantr
educti
onincallanddatarat
es,
al
ongwi ththepr
icesofsmar tphones,i
spropel
l
ingtheshif
ttoacashlesseconomy

ThegovernmentofI ndiaiswor kingdedi

cat
edl
yt opushIndiatowardsacashl ess
economy.Wit
hmaj orinit
iat
ivessuchasdemoneti
zati
on,Di
rectBenef
itTransf
ers,
BHIM
andmanymor e.Theintenti
st ostreaml
inet
heeconomyandcurbcorrupt
ion.

Thegover
nmentappr
ovedforaproposal
,underwhi
cht
her
ewoul
dbenochar
ge
f
orBHI
M,UPI,
anddebi
tcardtr
ansact
ionsupto₹2000.
Gov
er nmental
soranaDigi
Dhancampaignwhere16l akhsl
uckywinner
s’user
sand
merchant
swererewar
dedwi
thpr
izesr
angingf
rom Rs1000to1cror
e.

Furt
hertoincenti
vi
zebehavi
orchangeandbr ingdownt hecostofdi gi
talpayments,
ref
err
alandcashbackschemeshav ealsobeenlaunchedforBHI M whereusersand
merchant
sr ecei
vecashback.Also,ini
ti
ati
vesli
keUSSD andt he*99#servicehave
ensuredt
hatnon-Smar
tphoneuser
sarealsoonboardthecashlesswave.

Demoneti
zat
ion has gi
ven an i
mpet
us t
o e-
wal
l
etser
vices.Accor
ding t
oar
epor
t
secur
ingt
hecashlesseconomy.

3X i
ncreasei nthedownloadofal
eadi
ngmobi
l
ewal
l
etappwi
thi
n2day
soft
he
demonetizat
ionannouncement
.

1 mil
li
on Numberofnewl y sav
ed cr
edi
tand debi
tcar
ds wi
thi
ntwo day
s of
demoneti
zat
ionannouncement
.

100%:Day-on-
daygr
owt
hincust
omerenr
olmentwi
thl
eadi
ngmobi
l
ewal
l
etsaf
ter
demonet
izati
on.

30%:I
ncr
easeinappusageand50% i
ncr
easei
nthedownl
oadofwal
l
etsbackedby
l
eadi
ngbanks.

Thesmar tphoner ev ol
ut i
onhasledt ot
heemergenceofe-commerce,m-commer ceand
otherservi
ces,includingapp- basedcabaggregat
ors,whoencouragedigit
alpayments
foruseofv ari
ousser vices.Thev al
ue-
addedserv
icessuchascashback,bi l
lpayment
faci
li
ti
es,loyal
typoi nts,rewardsandeaseofusehav eresult
edinsurgeofsuchdi gi
tal
plat
forms.Thesedev elopment shavegi
venri
setoamoder npaymentmodel .

TYPESOFCASHLESSMODESANDPAYMENT:

Mobi
l
ewal
l
et:

Iti
sbasi cal
lyav i
rt
ualwal l
etavai
l
ableony ourmobilephone.Youcanstorecashi nyour
mobiletomakeonl i
neorof fl
i
nepay ments.Vari
ousservi
ceprovi
dersofferthesewall
ets
viamobi leapps,whichist obedownloadedont hephone.Youcant ransferthemoney
i
ntot hesewal l
etsonlineusingcr edi
tordebi tcar
dorNetbanki ng.Thi smeanst hat
everytimey oupayabi llormakeapur chaseonli
nev i
athewallet
,youwon’ thav
et o
furni
shy ourcarddetai
ls.Youcanuset hesetopaybill
sandmakeonl i
nepur chases.

Pl
ast
icmoney
:
I
tincl
udescr edi
t,debi
tandpr epai
dcards.Thel attercanbei ssuedbybanksornon-
banksandi tcanbephy si
calorvir
tual
.Thesecanbeboughtandr echar
gedonli
nev i
a
Netbankingandcanbeusedt omakeonl i
neorpoi nt
-of-
salepurchases,evengiv
enas
gif
tcards.Car dsar eusedf orthr
eepr i
marypur posesf orwit
hdr awingmoneyf r
om
ATMs,maki ng onli
ne payments and swiping forpur chases orpay ment
s atPoS
ter
minalsatmer chantoutl
etsli
keshops,r
estaurants,fuelpumpset c.

Netbanki
ng:

Itdoesnoti nvolveanywal l
etandi ssimplyamet hodofonlinetransferoff undsfr
om
onebankaccountt oanot herbankaccount ,creditcard,orat hi
rdpar ty
.Youcandoi t
throughacomput erormobi lephone.Logi nt oy ourbankaccountont hei nter
netand
transfermoneyv ianat i
onalel ectr
onicfundst ransfer,r
eal-t
imegr ossset t
lementor
i
mmedi atepaymentser vi
ce,allofwhi chcomeatanomi naltr
ansactioncost .TheRBI
classi
f i
esev er
ymodeofcashl essfundt ransf
erusi ngcar dsormobi l
ephonesas
prepaidpay mentinstrument .Theycanbei ssuedassmar tcards,magnet i
cst ri
pecards,
Netaccount s,Netwal let
s,mobi leaccount
s, mobilewallet
sorpaperv ouchers.Theyare
classi
f i
edintofourtypes:

OpenWal
l
ets:

Theseal l
ow yout obuygoodsandser v
ices,wi t
hdraw cashatATMsorbanksand
tr
ansferfunds.Theseser
vicescanonl
ybej oint
lylaunchedinassoci
ati
onwi
thabank.
Apartfrom theusualmerchantpayment
s,i talsoallowsy outosendmoneytoany
mobilenumberlinkedwi
thabankaccount
.M- PesabyVodaf oneisanexampl
e.

Semi
-OpenWal
l
ets:

Youcannotwit
hdr
aw cashorgeti tbackfrom thesewall
ets.I
nthiscase,acustomer
hastospendwhatheloads.Forexampl e,Ai
rtelMoneyorOl amoneyi sasemi-open
wal
let
,whichal
l
owsyoutotransactwithmerchantshavi
ngacont r
actwit
hAirt
elorOla.

Cl
osedWal
l
ets:

Thi
sisquitepopularwi
the-commercecompani
es;wher
einacert
ainamountofmoney
i
slockedwi t
ht hemerchantincaseofacancel
lat
ionorr
etur
noft hepr
oduct
,orgif
t
car
ds.Fl
ipkartandBookMyShowwal let
sar
eanexample.
Semi
-Cl
osedWal
l
ets:

Thesewall
etsdonotper mi
tcashwithdr
awalsorredempt
ion,butital
l
owsy outobuy
goods and ser
vices f
rom l
ist
ed v
endors and per
for
m financi
alservi
ces atl
ist
ed
l
ocati
ons.Paytmisanexample.

BENEFI
TSOFCASHLESSECONOMY:

ReducedTaxEv
asi
on:

Reducedinstancesoft axavoidancebecauseiti
sf i
nanciali
nst
itut
ions-basedeconomy
wheretransacti
ont r
ail
sar elef
t.Reducinguseofcashwoul dalsost r
angulatet
hegrey
economy ,preventmoneyl aunderi
ngand eveni ncreasetaxcompl iance,whichwil
l
ul
timatel
ybenef i
tthecustomer satl
arge.

Cur
bsBl
ackMoney
:

Itwillcurbgenerat
ionofblackmoneyandwi l
lreducer ealest
atepricesbecauseof
curbsonbl ackmoneyasmostofbl ackmoneyi si nvestedinRealest atemarket
s.
Usageofcashl essmechani
smswoul dalsoensur
et hatloophol
esinpublicsystemsget
plugged,andtheint
endedbenefi
ciar
iesar eabl
etoav ai
lthebenefi
tsduetot hem.

LowerCostofRunni
ngCashEconomy
:

InFinancialy
ear2015,RBIspentRs27bi l
l
iononjusttheact
ivi
tyofcur
rencyi
ssuance
andmanagement .Thiscouldbeav oi
dedifwebecomecashlesssociet
y.Ther
ewillbe
eff
iciencygai
nsastransact
ioncost
sacrosstheeconomyshoul
dalsocomedown.

ReducedThr
eatofFakeNot
e,Soi
l
edCur
rency
:

1in7notesi
ssupposedtobefake,whi
chhasahugenegat
ivei
mpactoneconomy
,by
goi
ngcashl
ess,
thatcanbeav
oided.

Nomor
ebul
kywal
l
ets:

Wecangetr idofthosebulkywall
ets.Deposityourcashi nt
ot hebankandj ointhe
mill
i
onswhoar eenjoyi
ngtheeaseofdigi
taltr
ansacti
onsusingcreditcar
ds,debitcar
ds,
mobilewall
ets,UPIappsandUSSDBanki ng.Havi
ngt hesealsomeanst hatyoudon't
needtostandi nt
helongqueuesofATMsany more.Justswipey ourpl
asticmoneyor
fl
ashtheQRcodewhi lemakingpay
ment sforyourpurchases.
EaseofTr
ansact
ions:

Onceyougethangofthedigit
alpaymentandt r
ansacti
onssy st
em,y ouaresureto
becomeafanofonl
i
neshopping.Digi
talandcashl
esstransact
ionshavepavedwayfor
e-
commercewherey
oucanshopf oranyobjectr
ightf
rom thecomfortofyourhome.

Easywayt
oTr
ackSpendi
ng:

Cashlesstr
ansacti
onsexecut eddigi
tall
yhav ethisuni
quefeatureofleavingatrail
.For
mostt i
mest hi
sisdonet hr
ought heindigenoustechnol
ogyoft hehumbl eSMS.Al so,i
f
youdecidetogocashless,theny oucaneasi l
yt r
ackyourspendingthroughthev ari
ous
stat
ementst hatyoureceivef r
om y ourbankandwal l
etoperatorsatt heendoft he
month.Thiswayy ouwillexactl
yknowwher eyourmoneywentandki ckawayt heev er
-
growingconcernofnotknowingt hesame.

Nohassl
esofOddChange:

Well
,asanIndi
ans,amaj orbenef
itofgoingcashlesswoul
dbetonotwor
ryaboutthe
oddchange.Thebeaut yofcashlesstransact
ionsi st
hatyoucanmaket heexact
pay
menttothelastpai
sa,beit0.
90Rs.or0.01Rs.

LessRi
sky
:

Imagineasi tuat
ionwher
ey ouaretr
avelingabr oadandal lofy ourcashgetsstol
en.You
arestrandedi nanali
ennati
onwithnomoney .Whatwi l
lyoudot hen?Cashoncest olen
hardl
yev ercomesback.Themoneyi slostf orever.Butifyougetr obbedofyourdebi tor
credi
tcar ds,youcaneasil
yblockthem r emot el
yandbeassur edthatyouwi l
lfaceno
l
oss ofmoney .Thati s a majorpl us ofgoi ng cashl ess.Wi ththe continuous
i
mpr ovement sbeingmadet ofi
nanci
aldi gi
tizati
ont echnology,soonwewi l
lhav ecar ds
whichwi l
lbeenabl edbyourbiometri
cs,andt henitwi l
lbecomeext r
emelydiff
icul
tf or
anyonet orobusofourhard-ear
nedincome.

Cl
eanerandGr
eener
:

Whi l
et hisreasonmaynotamountmuch,butgoi ngcashlessdoescont r
ibutetoa
cleanerandgr eenercountr
y.Morepeoplejoini
ngt hecashlessrevol
uti
onwoul dmean
reductioninthev olumeofpapermoneyt obepr oduced.Thiswoulddefi
nit
elyhelpthe
env i
ronmentandoursur roundi
ngsaslesspaperr equirementwouldmeanlessertrees
beingcut .Goingcashlesswouldmeancomi ngincont actwithl
essofsuchunhy gieni
c
currencies.Thus,weseei tmakesonetrul
yhealthy,wealthyandwise.
CHALLENGESTOCASHLESSECONOMY:

Accept
ancei
nfr
ast
ruct
ureanddi
git
ali
ncl
usi
on:

Lackofadequat ei nfr
astructureisamaj orhur dleinsetti
ngupacashl esseconomy.
I
neffici
entbankingsy stems,poordi git
ali
nfrastruct
ure,poorint
ernetconnecti
vi
ty,l
ack
ofrobustdigit
alpay menti nter
faceandpoorpenet r
ati
onofPoSt er
minalsaresomeof
theissuest hatneedt obeov ercome.Increasingsmar tphonepenetrati
on,boost
ing
i
nternetconnect i
vi
tyand bui l
dingasecur e,seaml esspay mentsinfr
ast r
uct
ureisa
prer
equisi
tetotransiti
onint oacashlesseconomy .

Fi
nanci
alI
ncl
usi
on:

Foracashlesseconomytotakeofft
hepri
maryprecondi
ti
onthatshoul
dexisti
sthat,
ther
eshouldbeuni ver
salf
inanci
ali
ncl
usi
on.Everyindi
vi
dualmusthav eaccessto
banki
ngfacil
iti
esandshoul
dhol dabankaccountwithdebit
/cr
editcar
dandonl i
ne
banki
ngfacil
it
ies.

Di
git
alandFi
nanci
alLi
ter
acy
:

Ensuri
ngfi
nanci
alanddigit
alincl
usionalonei
snotsuff
ici
entt
otr
ansit
iontoacashless
economy.The cit
izens should also be made awar
e ofthe fi
nanci
aland digital
i
nstrument
savai
lableandhowt otransactusi
ngt
hem.

Cy
berSecur
it
y:

Digi
talinfrastr
uctureishi ghlyvulner
abletocy ber
-att
acks,cyberf r
auds,phishingand
i
dentitytheft.Offlatecy ber-at
tackshav ebecomemor esophi st
icat
edandor ganized
andposesacl earandpr esentdanger .Henceestabli
shi
ngsecur eandr esi
li
entpay ment
i
nterfaces is a prerequisit
ef orgoing cashless.Thisincludes enhanced def enses
agai
nstat tacks,dataprotecti
on, addr
essingpr
ivacyconcerns,robustsurvei
ll
ancet opre
-emptat t
acksandi nstit
utionali
zedcybersecuri
tyarchi
tect
ure.

Changi
nghabi
tsandat
ti
tude:

I
ndianeconomyf uncti
onspri
mar i
lyoncashduet olackofpenet r
ati
onofe-payment
modes,digit
alill
i
teracyofe-paymentandcashl esst r
ansacti
onmet hodsandt hi
rdl
y
habitofhandli
ngcashasaconv eni
ence.Inthisscenari
o,theidealthi
ngtodoi sto
makepeopl eadopte- pay
ment sinani ncrementalf
ashionandspr eadawarenessto
i
nit
iatebehavi
oralchangeinhabit
sandat t
it
ude.

Ur
ban:
Whi l
eurbancentersmost l
yenjoyhighspeedi nt
ernetconnecti
vit
y,semiur banandr ural
areasar edepri
vedofast abl
enetconnection.Therefor
e,event houghI ndi
ahasmor e
than200mi l
li
onsmar tphones,i
tissti
llsomet imeawayf orruralIndiatoseaml essly
transactthr
oughmobi lephones.Evenwi t
hr egardtopresenceofATM,PoSt er
mi nal
s
andbankbr anchesthereexist
sasignif
icanturban-r
uraldi
videandbr idgi
ngthisgapi sa
mustt oenableacashlesseconomy .

HURDLESI
NMAKI
NGI
NDI
AACASHLESSECONOMY:

Moret han60%ofIndianpopulati
onbelongst
or uralr
egi
on.Almostaquar t
eroftherural
populacedoesn’
thav emobi l
ephonesandal argepercentageoft hem arecomput er
i
ll
it
erate.Theyar
enotcomf or
tableusingcomputersormobi l
ephonesf ortr
ansacti
ons
andrelyonotherpeopleforhelp.Thissometi
mesl eadstomisuseoft heaccountsand
si
phoni ngoff
unds,somajorit
yofr ur
almassprefercashoverdigi
tal
modes.

About90%oft heIndi
anlabormarketi
sinf
ormal.Maj
ori
tybei
ngemployedinagri
cult
ure
andmanufacturi
ngsectorwheredail
ywageispreval
ent
.Undersuchci
rcumstancesthe
i
nfor
mal l
abormar keti
sheavil
ycashdependent
.

I
ndiai sacount r
ywhere90% oft ransacti
onsarepaidfori n cash becausecash
faci
li
tates making tr
ansacti
ons anony mous,helpi
ng concealact i
vit
ies fr
om the
governmenti n a waythatmi ghthelp agent
s avoi
dlaws,r egulat
ions and t
axes.
Transit
ionfr
om a90%cash- basedeconomyt oa

Securi
tyisanot
herbigconcernregardingcashlesst ransact
ions.TheI ndi
anComputer
EmergencyResponseTeam hasrepor t
edasur geint henumberofi ncident
sti
llOct
ober
2016wi t
hcloseto39,730secur
ityincidents.I
ndiansar ewar yofdigit
almodesduet o
cybersecur
ityi
ncident
ssuchasphi shing,scanning,websiteintr
usions,def
acements
andvir
uscode.

Thoughsev er
alcompanieshavecomeupwi thinexpensi
vesmartphonessti
l
ltheyare
notaffor
dableformostofthepeopl
einthecountr
y.UnlessI
ndi
angovernmentprovi
des
necessarysubsidyoraffor
dabl
esoluti
onscashlesseconomywoul dbeaf arf
etched
dream.

Digit
alIndi
asuf f
er sfr
om thethreatoft hef
tsandhackingofdi
gitalmoneyinstr
ument s.
TheATM car ds,Debi t
/Credi
tcar ds,NetBankingsoluti
onsandev enthetransact
ion
websitesofthef inanci
alinst
it
utionsandbanksar ehackedbyt hemi schi
evouspeople
whowi t
hdraw moneybymaki ngcl onesandchangingthepasswor ds.Thi
shast obe
takencareofbef oreproceedi
ngondi git
alI
ndi
amission.
Asonecanseef r
om theabovethatcashlesseconomyhasadvantagesaswellas
disadvantagesandanygov er
nmentthi
nkingofadopt i
ngcashl
esseconomymodel
shouldcar eful
l
yanalyzethemerit
sanddemer i
tsandthentakethedecisi
onasthe
cashlesseconomycannotbei mposedonthepeoplerat
heri
tcanbegr adual
l
yadopt
ed
byt hepeopleofthecount
ry.

TheGov ernmentofI ndi

ahasbeent akingseveralmeasur estopr omoteandencour age
di
gitalpayment sinthecountry.Aspar toftheDi gi
talIndiacampai gn,t
hegov er
nment
ai
mst ocreateadi git
all
yempower edeconomyt hati sFacelessPaper l
essCashl ess.
Therearev ari
oustypesandmodesofdi git
alpayment s.Someoft heseincludetheuse
ofdebitorcr edi
tcards,i
nternetbanking,mobilewal l
ets,digi
talpaymentapps,Uni fi
ed
Payment sInterf
aceser v
ice,UnstructuredSupplement arySer v
iceDat a( USSD),Bank
prepaidcards,mobil
ebanking,etc.

Whati
sdi
git
alpay
ment
?

I
nsi mplewords,adi
gitalpaymentoccurswhengoodsorservi
cesarepurchased
t
hroughtheuseofvar
iouselect
roni
cmediums.Ther
eisnouseofcashorchequesin
t
histypeofpay
mentmethod.

Howar
edi
git
alpay
ment
simpor
tant
?

Sincedigi
tal
pay mentsreducet
hecost
sofprov
idingpoorpeoplewi
thfi
nanci
alser
vices,
theyhav ebecomeav italt
ooli
nimprov
ingfi
nanciali
nclusi
on.Theconveni
enceand
safetyofusingi nsur
ance,payment
s,andsavingsproductsalsoincr
easebyusi ng
digi
talpayments.

Whatar
ethedi
ff
erentsecur
it
yrequi
rement
sofdi
git
alpay
ment
s?

Thedi
ff
erentsecur
it
yrequi
rement
sofdi
git
alpay
ment
sar
e

Conf
ident
ial
i
ty

I
ntegr
it
y

Aut
hent
icat
ion

Av
ail
abi
l
ity

Aut
hor
izat
ion

Non-
repudi
ati
on
 HowdoDi
git
alpay
mentwor
k?

Paymentsthataredoneovermobi l
echannel
sandtheinter
netar
edigi
talpay
ments.
Digi
talpayment
scanal sobedef i
nedasanypayment
st hataredoneonli
neviat
he
i
nternetormobi
le-
enabl
edser
vices.

Howar
eDi
git
alPay
ment
sbet
tert
hancash?

Digi
talpayment
saremucheasierandsaferthancashpayments.Theyar
emuchmore
convenientt
hancashpay
mentsaswell.Sincetheyar
edigi
tal
,youdonothav
etocar
ry
cashaswel l
.

Whatar
etheobj
ect
ivesofDi
git
alt
ransact
ion?

Themainobj
ect
ivesofdi
git
alt
ransact
ionsar
etoreducethecost
sandr
isksofhandl
i
ng
cashandt
oincr
easetheeaseofconducti
ngt
ransact
ions.

Whati
sDi
git
alEconomy
?

Coinedin1995,di gi
taleconomyi satermt hatmer elyreferstoacount ry’
seconomy
that’
sbasedondi git
alpaymentt echnologi
es.Di gi
taleconomycompl etelychangesthe
waypeopl ehavebeendoi ngbusi nessforyearsnow.Wi t
ht heevoluti
onoft hei
nter
net
i
nt hepast2- 3decades,digitaleconomyhasbeengr owi
ngpr ofuselyacr ossvari
ous
countri
es.Thedigit
aleconomy ,apartfr
om maki ngtransacti
onsandpay ment seasi
er,i
s
expectedtocr eatenew mar ketgr owthoppor tunit
iesandj obs.Someexper tseven
anti
cipatethatt he digi
taleconomy wi l
lbecome t he mostsi gni
ficantbusiness
opportuni
tyint
henextf ewy ears.

I
ndi
aandDi
git
alEconomy
?

I
ndiacompr i
sesof15percentoftheworl
dpopulat
ion,andwithagrowt
hrateof7to8
percent
,Indiacanver
ywellbecomethesecondlargesteconomyby2030.Toachiev
e
thi
s,t
hegov er
nmentconsi
dersthedi
git
aleconomyastheprimarygr
owthenabl
er.

I
SINDI
ADI
GITALLYREADY?

Ther
eisnodoubti
nit
.Indi
aisreadyf
orthi
s.I
mmediatel
ywit
htheint
roduct
ionoft
his
campai
gn,manyor
gani
zati
onscameforwardt
olendthei
rhandsforachi
evi
ngIndi
aa
digital
lyequi ppedcount ry.Or ganizat i
onsl ikeBhar atSancharNi gam Li mited,Reliance
Ltd.ar ecomi ngf orwar dt ospr eaddi git
alizati
onamongr uralar eas.Andov er42000
vil
lagesal lov erI ndiawi llbehav ingseaml essmobi leconnect ivi
tyby2018.I ndi ais
aimi ngtoachi ev euni versaldi gitallit
eracyacr osst hecount ry.Thepr imei mportancei s
tomakesur eev er yindividualcanbeabl et olev eraget hepot ent i
alofDi git
alIndia.The
focusi satl eastoneper soni nahousehol dshoul dt ransformi ntoane- l
it
erate.Thiscan
beachi evedbyBhar atBr oadbandNet wor kLi mi tedwhi chispl anningt oconnect2,
50,000panchay atsundert hescheme.Thi swillensur ethedi git
izationandconnect i
vit
y
ofl ocalinst i
tutionsl ikepanchay atsof fi
ces,school s,othergov ernmentof fi
cesand
l
ibrar i
eset c.Indiai sr eformi ngi t
sgov ernmentt hr ought echnol ogyi nthenameofE-
Gov ernance wi tht he adv ancementoft echnol ogyand di gi t
alizati
on.Undert he e-
gov ernancepr ogr amme, outof252schemespl anned, 222ser viceshav ebeenpr ovided
i
nshor tspanoft ime.Theni nepi ll
arsofDi gi
talI ndi aprogrammecl earlyconfir
mt hat
I
ndi aasanat i
oni sati tsnascentst age.Onecaneasi l
yassuret hatI ndiawillbedi git
all
y
ready i nt he nextt hree y ear s.Ci tizens notr equi r
ed to phy sicall
y submi tGov t.
document sorcer ti
fi
cat es.

DI
GITALPAYMENTAPPLI
CATI
ONS

Digi
talpay ments aret echnical
ly defi
ned as any pay ment s made usi ng digital
i
nstruments.I
ndigi
t alpayments,thepayerandthepay ee,
bot huseelectr
onicmodest o
sendandr ecei
vemoney .Nohar dcashisused.Itis,howev er,notmandatoryinsome
casesforthepayeet oparti
cipat
edigit
all
yinorderforthetransacti
ontobef ulf
il
led.For
example,apay ercant ransfermoneyt ot hepayee’saccountusi ngthenetbanki ng
appli
cati
on,wherethepay eeneednothav eanetbankingaccountt orecei
vethemoney .

Pay
tm

Whati
sPay
tm?

Payt
mi sownedbyOne97Communi cat
ions,isadigi
talpaymentsplatformthatal
l
ows
youtotr
ansfercashint
otheint
egr
atedwalletvi
aonli
nebanking,debitcards,
andcredi
t
car
ds,orevenbydepositi
ngcashvi
aselectbanksandpartners.Usi
ngt hemoneyinthe
Payt
m wall
et,youcanpayforanumberofgoodswithoutusingcash.

Amongt
het
ransact
ionsy
oucanmakeonPay
tm ar
erechar
gesf
ormobi
l
ephones,
metrocar ds,DTH cable,dat acar ds,etc.,aswel laspost
-pai
dpay mentsformobi l
e
phones,landli
neorbroadband,el ectr
ici
ty,waterandgasbi l
l
s,etc.Youcanalsobook
ti
cketsforbuses,trai
ns,f l
ights,mov i
es,hot elrooms,et
c.andpayf orUbercabr i
des
usi
ngt hepl at
form.Additionally,youcanbuygoodsont hecompany ’se-
commer ce
pl
atform usingthewallet,andev enmakeof fl
inepaymentsatov er8lakhmerchants,
Paytm cl
aims.

I
fyouareanewPay t
m userwi
thoutKYC,youhavetowaitthr
eedayst
otransf
ermoney
f
rom y
ourPaytm Wal
lett
obankaccount.Ontheotherhand,t
hosewhohavecompl
eted
t
heKYCprocesscanstar
tbanktransf
ersi
mmediatel
y.

Transferr
ingmoneyf rom yourPaytm Wal l
ettobankaccountwasf r
eeofchar geti
ll
December31f ormerchantswhohavedoneKYC, butnotanymore-user
shav etopaya
feeof2per centnow.Youcansendami nimum ofRs.100t oyourbankaccountviat
he
servi
ce.Ev eryPaytm userscantr
ansf
erupt oRs.5,000atatime,wit
h25,000permonth
theli
mi t
.Ify ouareamer chant
,youcantransferuptoRs.50,
000;wit
hthelimi
tgoingup
toRs.1l akhi fyouar
eauserwho' sdonehisorherKYC.

Feat
uresofPay
tm app

Pay tmisanappwi t
hmor et hanahundr edmil
li
ondownloadsandhav ingmor ethan10
mi l
li
on acti
veuser sdai l
yi soneofI ndi
a’
spr emierappsand t hef aceofst art
-up
i
ndust ri
esaswel l
.Abill
ion-doll
aruni
cornPaytmi snotj
ustanappf orpayments,iti
san
all
-roundapp,itstr
ivestobewhatWeChatandAl i
babaar
ei nChina.I
twant stobet he
“allinoneapp”f orallI
ndians,oncey ouhavet hePaytm appyoudon’ tneedany t
hing
else.Thecompanyi sslowlymov i
ngtowardsit
sgoalsolet’
sexploresomeoft helesser
-knownf eat
uresofPay t
mt haty oumightnotknowabout:

eBayonPay
tm:

eBaySt orei sonPay tm now!Rememberhow eBayhadsol ditsIndiaoperati

onst o
Fli
pkartandpi ckedupami nori
tyst akeint hee-commer cecompanyi nexchange.The
dealwasn’ tatallsuccessf
ulandeBaypl annedt oret
urntoIndia.Pay t
m grabbedt hi
s
opportunityandgaveeBayast oreinsideitsownapp, makingeBayi nstant
lyaccessibl
e
tohundr edsofmi l
li
onsofIndiansonat ouchofabut ton!Youcanor deranythi
ngf r
om
aroundt hewor l
dthrougheBay ,makingt hi
sdealawi n-winsi
tuat
ionf orbothPaytm and
eBaywher et he f
ormergoti nter
nat i
onalpr oduct
son i tsapp whi l
et helatt
ergot
accessibil
ityt
omi l
li
onsofIndians.
Buyv
ehi
clesonPay
tm:

Paytmisnotjustfory
ourdailyshoppingneedsandappli
ances,youcanbuyy ourchoice
oft wo-
wheeler
sorev enfour-
wheelersaswel l!Payt
m haspar tner
edwi thdiff
erent
automobil
emanuf act
urerstoprovidevehicl
esoni t
sownpl atf
orm andy oucanor der
yourfavor
it
er i
deofchoi ceonPay t
m andi nst
antl
ypickthem upf rom yournearest
dealer
,makingshoppi
ngf orcar
sorev enmotorcycl
esonaclick.

Pl
aygamesonPay
tm:

Notjustforpay
ment sorshopping,y
oucanev enplayf
ungamesonPayt
mli
kerummy,
j
ell
ycrush,wheeloffort
une,et
c.Thiswasintr
oducedbyPayt
m ar
oundsi
xmont
hsback
t
oincreasetheaverageuserti
meoni tsapp.

Deal
s:

Aftert
heacquisiti
onofli
tt
leapp,Payt
mi nt
egr
atedallofthecompany’
sdealsi
nsi
deits
ownapp, br
ingingallt
herest
aurant
,sal
onandfitnessdealsi
nPaytm.So,t
henextti
me
yougot oar estaur
antorasalonmakesur et
ocheckoutPay t
m bef
orepayi
ngforthe
bil
landwincashbackandsav emoney.

Buy
ingGol
d:

Wheny oucanbuyalmostev er
y t
hingonPayt
mt henwhywoul dpr eciousmet alsbel ef
t
behind?!Paytm haspart
neredwi thMMTCwher ey oucanbuygol daccor dingtoy our
budget,forasl ow asoner upee,areyoucanev eni nstr
uctt oanaut o-buyspeci fi
c
amountorgr am worthofgoldev erymont
hasani nv estmentfrom y ourside.Thegol d
youbuyi ssecuri
typl
acedinalockerandcanbedeliveredtoy ouony ourinst
ructions.A
usercanal sosellt
hegoldwhi chhasbeenbroughtonPay tmi nstantly
.What ’
smor e?
Wheny out r
ansactthr
oughPay tm t
henyouget“ Goldback”,whi chisessent i
all
ya
specifi
camountofgol dasabonuswhi chisdeposi t
ediny ouraccounti nst
eadof
cashback.

Exper
iences:
Payt
mi sheretomakesur ey
ouexper i
encethebestofwhattheci
t yhastoof
fer,j
ustgo
ontotheexperiencestabinPaytm andselectthecit
yandyouwillfi
ndthewholerange
ofexci
ti
ngadv enturesthi
scityhasanof ferforyou,youcandi
rectlybuyaticketora
passtothatadventurefr
om Payt
m andgetcashbackoni taswell
.

Testser
ies:

Nowy oucanbuyy ourpreferr

edsetoftestseri
esfrom Paytm,noneedtogoany where
orsearchonGoogle,j
ustgot oPayt
m appandundert hetestser
iest
aby ouwil
lfi
ndall
themaj ort
estseri
eslistedinPay t
m,clickont heonewhi chyouwantt oenrolint
o,
sel
ecttheopt i
onandpayf orit
.Voi
la!Youareinstant
lyenrol
ledinyourfav
ouri
tetest
seri
es;exam pr
epar
ati
onscoul dneverhavebeeneasier
.

Br
andVoucher
s:

Frequentl
yvisi
ti
ngy ourfavori
teshoppi ngst oresinthemal lbutnotgettinganygreat
deals?Pay t
m comest oy ourr escue,wi thbr and v
ouchersonPay tm y oucanbuy
vouchersfortheamountofy ourf avori
teout l
etandpayusi ngthosevoucher sonthe
outl
et.Wellonev er
yv oucheryougetcashbackandt onsofdeal swhichcanbeused
l
ateront hePayt
m app.So, goahead, explorethebrandv oucherssect
ionwher eyoucan
buyv oucher
sforBrandFact ory,Lif
estyle,ShoppersStop,Kal y
anJewelers,BigBasket
,
Uber,etc.

Apar
tmentbi
l
ls:

Livi
nginaresidenti
alsoci
etyandpayingallt
hemont hl
ymaintenancefees,
member ship
fees,et
cisalway sahassle.Wit
hPay tmithasneverbeensimplerthanthi
s!Justenter
yourcit
yandchoosey ourresi
denti
alsoci
ety,ent
eryourfl
atdetai
lsand

payyourbil
l
.Althoughitt
akesaround24hour
sforthesoci
etyt
oconfir
my ourbil
l
paymenti
t’
sallworthi
twhereyoudon’
thav
etogoany
wherefr
om thecomfor
tofyour
home.

Mov
iepass:
Arey ouabi gmov i
ebuff?Doy ouwat chev erymov i
eassoonasi trel
eases?Ifthe
answert otheabov equesti
onsisYES,thent hePay t
m movi
epassi saper fectchoi
ce
foryou.Mov iepassisadealv oucherbyPay t
m wherebypurchasi
ngity ouget100%
cashbackony ournext4mov i
es,thev oucherisvali
dfor30day sf r
om thedat eof
purchase,soit’
sonlypracti
calforci
nemal overs.Butnev
ert
heless,agreatstrat
egyto
keepmov iegoersloy
altoyourownplatf
or m.

LI
Cpr
emi
um pay
ment
s:

Paytm haspar t
neredwithoneoft hel
argesti
nsurancecompani
esinthecount
ryto
prov
idepr emium paymentstoitsusersinaj i
ff
y!Nomor egoi
ngtoLIC of
fi
cefor
contact
ingyouragentt
opayy ourLI
Cpremium.Justentery
ourpol
i
cynumberonPayt
m
andtheamountofpr emium t
hatyouhavetopayandy ouar
edone.

Whati
sPay
tm wal
l
et?

Paytm wallet
sist hedigi
talpaymentinst
rumentwherey oucant ransfermoneyf r
om
yourbankaccountorcr editcardtousefortr
ansact
ionsonthepl atform.Youneedt o
setupanaccountusi ngy ourmobil
ephonenumberandemai lIDt osetupaPay t
m
accountandt r
ansfercashtothewall
et.Youcanaddupt oRs.10,000i namont hinthe
Wallet
,ifyouwantt oincr
easet hemonthl
yli
mit,t
heny oucangett heKYC( KnowYour
Customer)processordone.Wi t
hthi
s,youcanhaveupt oRs.1lakhi nthePaytm Wall
et
atanypointoftime.

Howt
ousePay
tm andPay
tm wal
l
et?

I
nor
dert
ouset
hePay
tm Wal
l
etandt
ransactcash-
fr
ee,
fol
l
owt
hest
epsbel
ow:

SetupaPay
tm accountusi
ngy
ourmobi
l
enumberandemai
lID

Addsomemoneyt
oyourPay
tm Wal
l
etusi
ngnetbanki
ng,
debi
tcar
dorcr
edi
tcar
d

Tot
ransf
ermoneyt
osomeoneel
se,
sel
ectt
he'
PayorSend'
opt
ion

Youcanmakepay
ment
stoot
her
sort
obankaccount
sonPay
tm byscanni
ngaQR
code

Al
ter
nat
ivel
y,y
oucansendmoneyt
oanot
herPay
tm userv
iat
hei
rphonenumber
I
SPAYTM WALLETOSSAFE?

Securit
yi stopofev eryone'
smi ndwheni tcomest oanydi git
al,butPay t
m whi chisan
RBIappr ovedwalletsay sitkeepsthemoneyy ouputint heWal letis“prot
ectedunder
Escrowaccountwi thar eputedbank.”Paytm usesVer
isign-certi
fied128-bi
tencrypti
on
technology,whichmeanst hatthesecretkeyusedintr
ansact i
onsi sasequenceof128
bitsanddoesnotr evealanythi
ngaboutt hepasswordlengthorcont ent
s,whichmeans
i
tdoesnotst or
ecreditcarddat ai
nunencr ypt
edform.

WAYSTOADDMONEY

Thr
oughapp:

Youcanaddmoneybycl i
ckingontheaddmoneyopt i
onont hehomepageoft
heapp.
You can use one ofthe manyoptions f
rom cr
editcard,debi
tcard,netbanki
ng
cr
edenti
als,ATM car
dandUPII Dt
oaddmoneyt oyourwal
let.

Credi
tCard:-Usey ourMastercar
d,Vi
sa,AmericanexpressorDiscov
ercreditcar
dto
addmoneyt oy ourPaytm wall
etandearnrewardpoi nt
sforcredi
tutil
i
zati
on.Paytm
fol
lowst
het wo-
factoraut
henti
cati
onmethodforver
if
yingyourpayments.

Debi
torATM Card:-Youcanal sorechar
gey ourwalletthr
oughATM ordebitcar
d.
Payt
m hasspeci
aloff
ersforRupaydebi
tcardusers.Wi t
heveryRs250addedtoyour
wall
ett
hroughaRupaycar
d,yougetanaddi
tional
balanceofRs25inyourwal
let
.

Netbanki
ng:-Youcanuseyournetbanki
ngcr
edent
ial
sincasey oudon’
thaveyour
cr
editordebi
tcar
dhandy,t
otransf
ermoneyfr
om yourbankaccounttoyourPay
tm
wall
et.

UPIId:-Paytm hasrecentlylaunchedthi
sf eaturet
oenableUPIuser
stoaddmoneyt o
thei
rPaytm wall
et.Fordoingt hi
s,youcanchooseUPIast hepaymentmethod,entert
he
amount,enteryourv i
rtualaddressandt hencl i
ckon‘Paynow’opti
on.Youwi llseea
coll
ectpaymentnot if
icati
oni fyouhav eaUPIenabl edapp,youcant henselectthe
respect
ivet
ransacti
onandcl ickonapprov eforthepay
menttobeprocessed.

Thr
oughWeb:

Whileonthewebinter
face,y oucancl
ickont hePaytmicononthetoprightcor
nerof
thehomepageandt henpr oceedbyenteri
ngt heamounttoaddmoneyt oyourwal
let
.
Cli
ckingonthe‘
AddMoney ’opti
onwil
lredi
rectyoutoasecurepaymentpage,wher
ein
youcanenterdet
ail
stopr ocessthetr
ansaction.Youcanuseyourcr
editordebi
tcard
det
ail
sornetbanki
ngcr
edent
ial
stoaddwal
letbal
ancetoyourPay
tm account
.Therei
s
al
soasav edcardsopti
ononbot happandwebi nt
erf
aceforqui
ckpr ocessi
ngof
payment
s.

Thr
oughcashpoi
nts:

Payt
m hasover2lakhcashpoint
sacrosst
henat
ioni
nt hei
rnetwor
k,wher
eyoucango
andconvertcashint
owalletbal
ance.Manyl
ocalki
ranastoresalsoser
veasPayt
m
cashpoi
nts.

Thr
oughot
herPay
tm User
:

AnotherwaytoincreaseyourPaytm balanceistor equestafri

endoracquaint
anceto
tr
ansfermoneytoyourwal l
et.Youcanpayt hem laterbyothermeans.Pay
tm doesnot
supportint
er-
wal
letoperabi
li
tyasofy et,andt herefor
eonlyaPay tm wal
letusercan
tr
ansferbal
anceandaddmoneyt oyouraccount.

Googl
ePay

GooglePayadi gi
talwal l
etsplatf
orm andonlinepay mentsy stem dev elopedbygoogl e
topoweri n-
appandt ap-
to-paypurchasesonmobi ledev i
ces,enabl i
nguser st omake
paymentswi thandroidphones,t ablet
sorwat ches.AsofJanuar y8,2018,t heold
Androi
dPayandgoogl ewalletshaveunifi
edintoasi ngl
epaysy stem calledGoogl ePay.
Androi
dPaywasr ebrandedandr enamedasGoogl ePay .I
talsot ookov ert hebr andi
ng
ofgooglechrome'saut of
il
lfeatur
e.GooglePayadopt st
hef eaturesofbot hAndr oidPay
andGoogl eWall
etthroughi tsin-
stor
e,peer-
to-peer,andonlinepay mentsser vi
ces.The
rebr
anded servi
ce prov i
ded a new Appl i
cation programmi ng i nt
erface t hatal l
ows
merchantstoaddt hepay mentser vi
cetowebsi tes,apps,Stripe,Braintree,andgoogl e
assi
stant.Theserviceallowsuser stouset hepay mentcar dst heyhav eonf il
ewi t
h
GooglePay .

GooglehaslaunchedGoogl ePay(Tez)isanewdigitalpaymentsappli
cat
ionforIndi
an
user
s.Theappi sdev el
opedonUnifiedPaymentsI
nterfacepl
atf
orm andisavail
ablef
or
bothandroi
dandi OSuser s.AccordingtoTechCr
unch,userscanmakeat otalof20
tr
ansact
ionsofcollecti
vel
yuptoRs1Lakhi nadaythroughtheapp.Tezisapay ments
appandisdi
ffer
entfrom amobi
lewall
etinthesensethatyoucannotst
oremoneyi
n
thewal
l
et.Moneyisdeduct
edoraddeddi
rect
lyfr
om yourbankaccount
.

GooglePayal lowsuserst osendmoney ,receivepaymentsdirectl

yintotheirbank
accountormakepay mentsforpurchasesmadeatst or
est hatacceptUPIbased
tr
ansacti
ons.Theuserhast ol
inkhi
sbankaccountwi t
hTezbyent eri
ngUPIpinbef ore
makingt r
ansacti
onst hr
oughtheapp.Tr ansactionsmadet hr
ought heappl
icati
oni s
si
mpl e,safeandqui ck.Theappsuppor ts8l anguagesthatincludeEngli
sh,Hi ndi
,
Bengali
,Gujar
ati,
Kannada,Mar
athi
,Tami l
,andTel ugu.

Feat
uresofgoogl
epay(
Tez)

Googl
ePaycomeswi tharangeofinnov
ati
vefeat
ureswhi
chdi
ff
erent
iat
esi
tfr
om ot
her
UPIbasedappl
i
cat
ions.Someofthesefeat
uresar
e:

Tr
ansact
ionsar
emadedi
rect
lyt
oandf
rom y
ourbankaccount
.Yourmoneyi
snot
st
oredi
nanywall
et.

I
nst
antt
ransf
erofmoneycanbecar
ri
edoutt
hrought
heapp.

Transact
ionsmadet hr
oughtheappar esaf
eandsecureandar eprotect
edbyTez
Shiel
dthatprov
idesamult
i-
lay
eredsecur
it
ywi
th24×7pr
otect
ionf
rom f
rauds.

Theappmakesi
teasyt
opayort
ransf
ermoneybot
hinbi
gaswel
lassmal
lamount
s.

User
scansendorreceiv
emoneyi
nst
ant
lywi
tht
heCashModewi
thoutshar
ingt
hei
r
per
sonal
orbankdet
ail
s.

Theappsuppor
ts8I
ndi
anl
anguages.

Aspernow,payment
scannotbemadethr
oughdebi
tcar
dsorcr
edi
tcar
dsbutt
he
feat
urewi
l
lsoonbeav
ail
abl
eforuser
s.

Userswil
lal
sobeabl
etosetr
emi
nder
sandmakepay
ment
sper
iodi
cal
l
yforDTH,
uti
l
ity
bi
ll
s,et
c.inf
utur
e.
Pl
atf
orm andt
echnol
ogyofGoogl
epay(
Tez)

Theappwor ksontheUPIplatf
orm pr
omotedbyt heNat i
onalPay ment
sCorporat
ionof
Indi
at hatall
owspeopletomaket r
ansact
ionst hrought hei
rbankaccountsinstantl
y.
Youneednotl oadmoneyinwal l
ettomaket ransact i
ons.Yourmoneyi ssafeiny our
accountand y ou can make dir
ectpaymentst hrough the app.The appl
i
cati
on i s
avai
lableforsmart
phonesthatworkonAndroidori OS.

Googlehaslauncheda“ CashMode”t hr
oughwhichuser
scansendmoneyt oot
herTez
usersinthevi
cini
tywithoutshar
ingthei
rmobil
enumberorbankdet ail
s.Theappuses
Google’
sAudioQRTechnol ogytoidenti
fyaTezusernearbyandt r
ansfermoneytothe
recei
verqui
teeasil
y.Theappwor kssmoothl
yeveninnoi
sysurroundings.

Theappi ssaf eenoughandi sprotect

edbyTezShi el
dt hatpr
ovides24×7secur it
y
agai
nstfraud,hacki
ng,et
c.Googlehasprovi
dedaddi
ti
onalsecuri
tyfortransact
ionsas
user
s hav eto activ
ate ei
therscr
een lock orGoogle pi
nt o gain access tothe
appl
icat
ion’
sinterf
ace.

Benef
it
sofGoogl
epay(
Tez)

Googl
eTezcomeswi
thar
angeofbenef
it
s.Someoft
hosear
edi
scussedbel
ow:

CashMode:heCashModeal
l
owsuserstotr
ansf
ermoneyt
oTezuser
sinrangewit
hout
enter
ingt
hei
rmobil
enumberorbankdetai
l
smakingthepay
mentsmoresecurethan
ever.

I
nst
antTr
ansact
ions:
Transact
ionsmadet
hrought
heappar
esi
mpl
eandi
nst
ant
.

Mult
ipl
ePaymentOpti
ons:Pay
mentscanbemadet
ouser
sbysel
ect
ingt
hei
rmobi
l
e
numberandVi
rt
ualPay
mentAddressaswel
l
.

CashbackandOf fer
s:Googl
eisof
fer
inghugecashbacksont
ransact
ionst
hatar
e
l
ucrat
iveenough.
Secur
it
y:Transact
ionsmadet
hroughTezf
oll
owmul
ti
-l
ayerencr
ypt
ionandi
spr
otect
ed
byTezShiel
d.

EaseofUse:Theappisav
ail
ableinei
ghtl
anguagesal
l
owi
nguser
stoav
ailt
heser
vice
i
nal anguaget
heyar
ecomfor
tablewit
h.

TezforBusi
nesses:Aspecialappall
owsbusi
nessest
oconnectwi
tht
hei
rcust
omer
s
easi
l
yandprovi
det hem cust
om deal
sandof
fer
s.

Univer
sal
lyAccept
ed:Theappi
scompat
ibl
ewi
thal
lbanksaccept
ingt
ransact
ions
thr
oughtheUPI.

Howt
odownl
oadGoogl
epay(
Tez
)

TheAndroidversi
onofGoogl eTezcanbedownl oadedf
rom GooglePl
ayStoreandthe
i
OSv er
sioncanbedownl oadedfrom AppStor
e.Letusdiscusshowtoinstal
ltheapp
andaddy ourbankaccounttoitt
omaket r
ansacti
ons:

Downl
oadt
heGoogl
ePayapp(
Tez
)andi
nst
all
itony
ourphone.

Opent
heGoogl
eTezappandsel
ectt
hel
anguagey
ouwantt
ousei
tin.

Nowent
ery
ourmobi
l
enumberandr
equestf
oranOTPt
oact
ivat
eyouraccount
.

GoogleTezneedstoconnectwit
hy ourGoogl
eaccount
.Incasey
ouhav
emul
ti
ple
account
s,i
twi
llasky
outosel
ectone.

Nowy ouhavetoli
nkyourbankaccountwi
tht
heapp.Sel
ecty
ourbankf
rom t
hel
i
stt
hat
appearsi
nthi
sstep.

Linkyourbankaccountwi
ththeappusi
ngtheUPIpin.Incasey
ouhav
enotact
ivat
ed
yourUPIaccount
,theappof
fersy
outoseti
tupi
nstantl
y.

Onceyouraccountissetup,y
oubecomer
eadyt
osendorr
ecei
vemoneyt
hrough
Googl
ePay(Tez)app.

Howt
omaket
ransact
ionswi
thGoogl
epay

CashMode:Userscant r
ansf
ermoneytoot herTezusersusingthecashmode.No
det
ail
sar
er equi
redforthismodeoftransacti
on.Thepayee’sappsendsaudi
oQR
si
gnal
swhichisaccept
edbytheTezappactiveontherecei
ver
’sphone.Pay
ment
scan
bemadewi
thoutent
eri
nganydet
ail
swi
thj
ustacoupl
eoft
aps.

PhoneNumber:ATezusercansendmoneydi
rect
lyt
oot herTezuserbyjustenteri
ng
thephonenumberoft
her
ecei
ver
.Ithel
psi
nshi
eldi
ngyourbankdet
ail
sfrom thepayee.

AccountNumber
:User
scanal
somakepay
ment
sbyent
eri
ngt
heaccountdet
ail
soft
he
recei
ver
.

UPIMode:Incaseyouknowt heVPAofther
ecei
ver
,youcansendmoneydi
rect
lyt
othe
bankaccountoft
herecei
verusingt
heUPImode.

QRCode:Tomakepayment
susingthi
smet
hod,
theusershoul
dscant
heQRcodeand
conf
ir
mittomakepay
mentsinst
ant
ly.

Howi
sGoogl
ePaydi
ff
erentf
rom ot
herApps?

Googl ePayapphasmader ev olut

ionarydev el
opmenti nthedigitalpaymentssect or.
TheCashModeal lowsTezuser st ocar r
youtf i
nanci
altransacti
onswi thoutprovi
ding
thedet ai
l
s.Thi
shelpsinprotectinguser sfrom get
ti
ngdupedbyf r
audsandcons.Asno
detail
sareshared,
y ourbankaccountr emainshiddenfrom exter
nalthreats.Al
so,these
transacti
onsaredonewi thaf ewt apsony oursmartphonemaki ngi tsi
mpl eforusers
from allwal
ksoflifeandal lsect i
onsoft hesocietytogeti ncorporat
edi nthedigital
fi
nancialworl
d.

PhonePe

ThePhonePeappl i
cationforpci sanassoci ateinNur singf i
nanceappappt hat
’s
capable ofoper
ati
ng overa central
ized mortgages int
erface,itwas br
oughtint
o
exi
stencebytheNationalPaymentsCor por
ati
onofI ndia.ThePhonePeappi spower-
dri
venandmanagedbyt heaff
ir
mat i
vebank.It’sfar-
famedt obeasecur eandsaf e
met hod oft ransferr
ing cash and cr eat
ing payment s.PhonePe Pr i
v at
e Li mit
ed or
PhonePe i s an I ndi
an e- commer ce paymentsy st
em and di gitalwal l
etcompany
headquar t
eredi nBangal or
e,India.Itwasf oundedi nDecember2015, bySameerNi gam
andRahulChar i.PhonePeappwentl i
veinAugust2016andwast hef i
rstpay mentapp
buil
tonUni fi
edPay ment sInterface.ThePhonePeappi sav ailablei nov er11I ndian
l
anguages.Usi ngPhonePe,user scansendandr eceivemoney ,DTH,r echargemobi le,
datacar ds,makeut il
itypay ment s,buygol dandshoponl i
neandof fli
ne.I naddit
ion
PhonePeal soal l
owsuser stobookOl arides,payf orRedbust i
cket s,or derfoodon
Freshmenu,f itandav ailGoibiboFl i
ghtandHot elser vi
cest hr oughmi croappsoni ts
pl
atf or
m..PhonePei saccept edasapay mentopt ionacross5mi l
l
ionof fl
i
neandonl i
ne
mer chantoutletscov eri
ngf ood,t ravel
,groceri
es,mov ieticketset c.Theappcr ossed
100mi lli
onusermar kinJune2018andal socr ossed5bi l
li
ont ransact ionsi nDecember
2019.I ti
sl i
censedbyt heReser v eBankofI ndiaf orissuanceandoper ationofaSemi
ClosedPr epaidPay mentsy stem.

Howt
ocr
eat
ePhonePeaccount

Downl
oadt
heappf
rom t
heGoogl
ePl
aySt
oreorAppl
eAppSt
ore.

Afterdownloadi
ngt
heapp,opentheappandver
ifyy
ourmobi
lenumber
.Besur
ethat
themobi l
enumbery ouent
eredshoul
dbet hesameoneregi
ster
edwit
hyourbank
account

Ent
erallt
herequir
eddet
ail
s(Name,emai
laddr
essandsety
our4-
digi
tpasswor
dand
act
ivat
eyourwal
let.

Taponcr
eat
ingnewVi
rt
ual
Pri
vat
eAddr
ess.

Sel
ecty
ourbankaccountt
oli
nk,
theappwi
l
laut
omat
ical
l
yfet
cht
hedet
ail
s.

Conf
ir
myourbankdet
ail
s

Howt
oaddabankaccountonPhonePe

Openmenubyt
appi
ngont
hei
conatt
het
opr
ightcor
neroft
hescr
een

Got
obankaccountsect
ion,
andt
apont
he"AddNewBank"but
ton.
Sel
ectt
hebankwhi
chy
ouwantt
oli
nkwi
thf
rom t
hel
i
stofav
ail
abl
ebanks.

PhonePewi
l
laut
omat
ical
l
yfet
chy
ouraccountdet
ail
sandwi
l
lli
nki
ttoy
ouraccount
.

Nowsety
ourUPIPI
Nbyt
appi
ngont
hesetUPIPI
Nbut
ton.

Ent
eryourcar
ddet
ail
s(Lastsi
xdi
git
sofy
ourDebi
torATM car
dnumberandExpi
ry
Dat
e)

Ent
erOTPandsety
ourUPIPI
N.

Youbankaccounthasbeenaddedsuccessf
ull
y,now y
out
ransactdi
rect
lyusi
ngy
our
UPIPI
N.

Feat
uresofPhonePe

YoucanSendandr
equestcashf
rom y
ourcont
act
sany
time,
any
wher
e.

Rechar
geanypai
dMobi
l
eorDat
acar
dorDTHconnect
ionsacr
osst
hecount
ry.

Paypost
-pai
dlandl
i
ne,
Dat
acar
dandmobi
l
ebi
l
lsf
oral
lcr
uci
aloper
ator
s.

Payf
orut
il
it
iesl
i
keel
ect
ri
cit
yandgasbi
l
ls.

Spl
i
tbi
l
lsal
ongwi
thy
ourf
ri
endsandset
tl
ethem atonce.

Shop on Fli
pkart
,My nt
ra,Jabong and ev
ery
one yourdi
ffer
entf
avour
it
e.On-
Line
sear
chingdesti
nati
onsvi
cti
mizat
ionf
eatur
esofPhonePeonpc.

Tr
ansactupt
oRs.
onel
akhperdeal
i
ngs.

Geti nst
antrefundsand cashbackfrom thepar t
nermerchantsint
oy ourPhonePe
notecase.I
nstantl
ywit
hdr
awy ourenti
renotecasebal
ancet
oy ourUPIenabl
edchecki
ng
accountwithonlyoneswi
pefreedfrom v
alue.

Topupy ournotecasemistr
eatmenty
ourUPIenabl
edchecki
ngaccountorachar
ge
accountcredi
ttocreat
el i
ghtni
ngqui
ckpaymentstoyourfr
iends,f
amil
yormaybe
associ
ateever
ydaypayment.

One-cl
i
ck paymentt r
ansf
ersy ourPhonePe app on pc f
eat
ures atany ofour
merchandi
serpar
tnerl
ocat
ions.

Youcancur
rent
lyi
nter
acti
nyourr
egi
onall
anguage,Hi
ndi
,Mar
athi
,Kannada,Tami
l
,
Tel
ugu,Malayal
am,Assamese,Gujar
ati
,Or
iya and Bengal
inow l
i
ve.Addi
ti
onal
l
anguageswer
ecomingbackshor
tl
y.

Howt
otr
ansf
ermoneyv
iaPhonePe

Opent
hePhonePeappony
ourdev
ice.

Got
othe'
Send'
opt
ionont
hemai
nscr
een.

Ent
ert
heVPAoft
hepay
ee.

Ent
ert
het
ransact
ionamount
.

Sel
ectt
hebankaccountf
rom whi
chy
ouwantt
otr
ansf
ert
hemoney
.

Ver
if
ydet
ail
sandt
apt
hesendopt
ion.

TRADI
TIONALPAYMENTSYSTEM

Pay mentsy stemsar eusedi nl i

euoft ender i
ngcashi ndomest i
candi nternati
onal
transact i
ons.Thisconsistsofamaj orservicepr ovidedbybanksandot herf inancial
i
nst i
tutions.Tradi
ti
onalpaymentsy stemsi ncludenegot iableinstr
ument ssuchasdr afts,
cheques and document ary credit
s such as l etter
s ofcr edi
t.Wi tht he adv entof
comput ers and elect
ronic communi cati
ons,many al ternati
ve electr
onic pay ment
sy st
emshav eemerged.Thet erm electroni
cpay mentr eferstoapay mentmadef r
om
one bank accountt o anotherusing el ectronic met hods and f orgoi
ng t he di r
ect
i
nt er
v ention ofbankempl oy ees.Nar rowlydef ined electroni
cpay mentr eferst o e-
commer ceapay mentf orbuy ingandsel l
i
nggoodsorser vi
cesof fer
edt hrought he
Internet,orbroadl
ytoanyt ypeofelect r
onicfundst ransfer.

Tr
aditi
onalpaymentmet hodsi
ncl
ude cash,checks,cr
edi
tand debi
tcar
ds.These
methodshavesever
alshort
comi
ngs

Checksandcashcannotbeexchangedi
nreal
time

Cr
edi
tanddebi
tcar
dinf
oexchangedov
ert
hephoneorbyemai
lent
ail
ssecur
it
yri
sks

Cr
edi
tordebi
tcar
dsdonotsuppor
tindi
vi
dual
toi
ndi
vi
dual
pay
mentt
ransact
ions

Someindi
vidual
sdonothav
eaccesst
ocr
edi
tcar
dsorchecki
ngaccount
sbecauseof
cr
edi
thist
ory
t
heov
erheadofal
lbutcashdonotsuppor
tlowv
aluet
ransact
ions(
micr
opay
ment
s)

Cash:
Cashr
emai
nst
hedomi
nantf
orm ofpay
mentbecauseof

Lackofconsumert
rusti
nbanki
ngsy
stem

I
nef
fi
cientcl
ear
ingandset
tl
ementofnon-
casht
ransact
ions

Negat
iver
eal
int
erestr
atesonbankdeposi
ts

El
ect
roni
cPay
ment
s:E-
commer
cer
equi
respay
mentmet
hodst
hatar
e

Wi
del
yusedbyconsumer
sandaccept
edbymer
chant
sandbanks.

Real
time,
i.
e.t
ransact
ionsar
ecompl
etedwhenconsumerhi
tst
hepaybut
ton

Pr
ovi
desuppor
tformi
cropay
ment
s

Requi
redPr
oper
ti
esofEl
ect
roni
cCash:

Musthav
eamonet
aryv
alue

Mustbei nt
eroper
abl
eorexchangeabl
eforot
herdi
git
alcash,papercash,goodsor
ser
vices

Mustbest
orabl
eandr
etr
iev
abl
e

Mustbet
amperr
esi
stantwhi
l
ebei
ngexchanged

Approachest
oElect
roni
cDigit
alCash:Tokensordi
git
alcashar
efor
msofpay
ment
backedbyabankorfi
nanci
ali
nsti
tut
ionandoff
er

Tr
ansact
ionpr
ivacyandconf
ident
ial
i
ty

Suppor
tformi
cropay
ment
s,orsmal
lfeet
ransact
ions

Real
timeexchangebet
weenbuy
erandsel
l
er

Cheque:
Achequei sanegot i
ableinstrumentthatorder
sabankt opayaspeci fi
camountof
moneyf r
om aper son'
saccountt ot hepersoninwhosenamet hechequehasbeen
i
ssued.Thepersonwr i
ti
ngt hecheque,hasat r
ansact
ionbanki
ngaccount(oft
encalled
acurrent
,chequeorsav ingaccount)wherehi smoneyisheld.Achequeendor sesa
di
git
alcerti
fi
cat
et oauthent i
catebankaccountandi toff
ersgreatsecuri
tyfeatur
es.
Chequesareprocessedonlineandar egovernedbythesamel awsthatapplytoother
methodsofcashlesstr
ansaction.

Demanddr
aft
:

Ademanddr aftisanegot i
ablei
nstrumentissuedbyacert
ainbank.Ademanddr af
tisa
negotiabl
einstrumentsi mil
artoabi l
lofexchange.Abankissuesademanddr afttoa
cl
ient( dr
awer),direct
inganotherbank( dr
awee)oroneofi tsownbr anchest
opaya
certai
nsum t ot hespecifi
edpar t
y(payee)
.Itisusedfortr
ansfer
ringmoneyfr
om one
placetoanotherwi thgreatconveni
enceandsaf et
y.
RESEARCHMETHODOLOGY

OBJECTI
VES:

Thepresentr
esearchstudydealswi t
hcashlesseconomyofI ndi
a.Thisoutcomeof
cashl
essisreveal
edint heform ofov er
allper
cepti
on,levelofsati
sfact
ion,serv
ice
usageandpurposeoft
het r
ansact
ion.Thus,t
heobject
ivesofthi
sstudyareasfoll
ows:

 Tost
udyt
heawar
enessandappl
i
cat
ionofdi
git
alser
vices.

 Toanal
yzei
ndi
vi
dual
’
sper
cept
ionf
orsecur
it
iesofdi
git
alappl
i
cat
ionsandusage.

 To analyze t
he need ofsaf
e and secur
efi
nanci
alt
ransact
ion usi
ng di
git
al
technol
ogy.

 To comparethe i
mpactofdi
git
alt
ransact
ion wi
tht
radi
ti
onalmet
hod of
tr
ansact
ion.

RESEARCHHYPOTHESES:

Hypothesisisassumpt ion thatwantt ot estforpossibl

e acceptance orr ej
ecti
on.
Hypothesisisnotnecessaryforanyresearchbuthypot
hesisformulati
oni ssignif
icantl
y
i
mpor tantinresearch.Aresearchermightnotbeabl etoconcludebef oreconduct ing
t
her esearchaboutt hephenomenon,situati
onoracondi ti
onthathei sst udyi
ngi nhis
r
esearch.Hy pothesi
sformulati
onmakesi teasiert
ogoi naparticul
ardirectionandget
t
heconcl usi
on.

Nul
lhy
pot
hesi
s:

Symbol
i
zedbyH0St ati
sti
calhypothesi
sthatst
atesthereisnodif
fer
encebetweena
par
ameterandaspecif
icvalue,
ortherei
snodiff
erencebetweent
woparamet
ers.

Al
ter
nat
ivehy
pot
hesi
s

Symbol
i
zedbyH1St ati
sti
calhypothesi
sthatstat
esexist
enceofdif
fer
encebetweena
par
ameterandspeci
ficval
ue,orstatest
hereisdif
fer
encebetweent
woparameters.
Hy
pot
hesi
s:

H0:
Peopl
ear
eawar
eofDi
git
alI
ndi
a.

H1:
Peopl
ear
enotawar
eofDi
git
alI
ndi
a.

H0:
Peopl
etr
ustt
hedi
git
alappl
i
cat
ions.

H1:
Peopl
edonott
rustt
hedi
git
alappl
i
cat
ions.

H0:
Peopl
est
art
edusi
ngdi
git
alappl
i
cat
iondur
ingt
hePandemi
c

H1:
Peopl
est
art
edusi
ngdi
git
alappl
i
cat
ionbef
oret
hePandemi
c

METHODOLOGY

Ther
ear
etwosour
cesofdat
a:

 PRI
MARYDATA:

Pri
marydat
acoll
ectedthroughsur
veybyquest
ionnai
rest
ruct
uredmet
hodswi
thl
i
mit
ed
numberofr
espondents.

Bot
h,openaswel
lascl
osedendedquest
ionsar
easkedi
nthequest
ionnai
re.

Thequest i
onnai
reisprepar
ed wi
tht
hehel
p ofGoogl
eFor
msand r
esponsesar
e
successf
ull
ycoll
ect
ed.

Thoughsampl
emet
hodby50r
andom peopl
e.

Resear
chDesi
gn

Sampl
eSi
ze–50

Sampl
i
ngMet
hod–Conv
eni
entSampl
i
ngMet
hod

 SECONDRYDATA:

Secondar
ydataiscoll
ect
edf r
om inf
ormati
onav
ail
abl
eov
ert
hepastf
ew y
ear
sfr
om
var
iousonl
inesour
ceshavebeenanal
yzed.
SCOPEOFTHESTUDY:

 Thest
udycov
erst
her
egi
onofMumbai
cit
y

 The st
udy i
s basses on the responses of peopl
e bel
ongi
ng t
ovar
ious
demogr
aphyi
.e.di
ff
erenti
ncome,gender,age,
occupati
on.

 Thest
udyi
sdonebyt
aki
ngi
ntoconsi
der
ati
ont
hedi
git
alI
ndi
a.

 Thest
udyi
nvest
igat
esal
laboutcashl
esst
ransact
ions.

 Thestudycont
ains360-
degr
eei
nfor
mat
ionr
egar
dingDi
git
alI
ndi
aacashl
ess
economy.

 Thest
udyhasbeenconduct
edonbehal
fofcashl
esst
ransact
ions.

 Thest
udycov
erst
heser
vicespr
ovi
der
sanduser
sofdi
git
alt
ransact
ion.

LI
MITATI
ONSOFTHESTUDY:

 Thestudyi
sdonewit
hinMumbaianddoesnotcoverot
herst
ateofI
ndi
aorev
en
theot
herci
ti
esofMaharasht
raduet
oti
meconstrai
ns.

 Theresponsesthewayofquest
ionnai
rei
ttakenf
rom av
eryl
i
mit
ednumber
sif
peopl
esduet ot
imeconst
rai
ns.

 I
twasnotpossibl
etoconductext
ensi
ver
esear
chduet
oscar
cit
yoff
undand
t
imeconst
rai
nt.

 Sampl
eswer
esel
ect
edconv
eni
ent
ly.

 Thesampl
esi
zei
sli
mit
edt
o108onl
y.

 Thesampl
esi
zemaynotr
epr
esentt
hewhol
emar
ket
.
REVI
EW OFLI
TERATURE

AgarwalandVar iyar(2017)r eport

edint hei
rart
icl
ethatinBudgetour
fi
nance mi ni
sterAr un Jai tl
ey encouraged digit
alpay ments and
announced a mi ssi
on t argeti
ng at least 2,500 crore cashl
ess
tr
ansacti
onsi n2017and2018t hroughpay mentmodulessuchast he
gover
nment ’s Uni fi
ed Pay ment sInter
face and AadhaarPay .The
bi
omet r
ics-
basedpay mentssy stem wil
lbelaunchedshortl
y,f
orwhich
banks willbe encour aged t or ollout2 mi l
li
on Aadhaarl i
nked
paymentstermi nalsbySept ember .Healsoputapr oposaltomandate
al
lgovernmentr eceiptsthroughdi gi
talmeansbey ondal i
mitisalso
underconsideration.
BhaktaandVar iyar(
2017)report
edt hatTheRat anWat alcommi t
tee
recommendpr opermeasuresforencouragingdigitalpaymenti nIndia,
may hav e envi
saged a rosy pi
cturef ordi gi
talt r
ansactions and
recommendedsweepi ngchangest oregulati
onar oundpay ment s.But
i
ndust r
yexecutiv
esandexper tsfeltthatt herepor twasext remel y
futur
ist
ic and al most v
erges on wi shful thinki
ng as sev eral
recommendat i
onsareli
kel
ytofaceimpl ementati
oni ssues.
PavneetKaur( 2017)opi nedt hatdemonet i
zationisagener ations
memor ableexperienceandi sgoingtobeoneoft heeconomicev ents
ofourt ime.Itsimpactf eltbyev er
yI ndianciti
zen.Demonet i
zation
aff
ectst he economy t hrough t he l
iquidit
y side.Demonet i
zi
ng i s
Progressiv
eshi fttoacashl esseconomywi thagr eat
erfocuson
el
ectronictransacti
onsi sbei ngenv i
saged.Ri singuseofcr editor
debitcards,netbankingandot heronl i
nepay mentmechani smswi l
l
beanot herposit
iveeffectofdemonet izati
on,ast hesewouldnotonl y
l
owert ransacti
oncost sbutsomeoft hesecouldhel pearnsomef ee
i
ncomeaswel l
.
Bhakt a(2017)not edt hatdi gi
talpay mentsgr ew 57%year-
on-yearin
the lastfiscalwi t
h mobi l
e wal let
s mor et han doubl
ing and card
pay mentsrising44%, helpedbyast ronggov ernmentpushparti
cularl
y
aftert hedemonet izati
ons.Hehadal sor eportedAadhaarenabl ed
pay mentsy stems and t he gov ernment-backed,Unifi
ed Payment s
Interf
ace,hav ecrossedt ransactionof8. 8bill
ion.I
nhisart
iclehehas
alsocov er
eddet ai
lsfoundi nintervi
ew withAPHot a,MD,NPCI .He
reported t
hathopei ni ncreasing in UPIasuseofRupaycar di s
i
ncreasi ngwi
llhelptoachievetar
getof25bi l
l
iont r
ansact i
ons.1lakh
Bharat QRcodest hathavebeendi st
ribut
edacr ossmer chantoutlets
thi
sy earandt heyhav eplant o do anotheraddi t
ional93, 000t he
coming y ear
.Rupay car ds had 195 mi ll
ion transactions atPoS
ter
mi nalsandaround87.5mi l
li
ontransacti
onsf oronli
net ransact
ions.
Vari
y ar(
2017)report
edi ssuesofdi gitalpaymentdidnotconsiderin
Budget 2017.Such i ssues wer e:cost s of incenti
vi
zing di
gital
paymentsshouldbebor nebygov ernmentandRBIandnotcust omers
orfi
nanciali
nter
mediari
es.Ot herissuewasi nt
eroperabi
li
tyandopen
accesstopay mentsystemsbynon- bankpay mentser v
iceprovi
ders
emphasizedbyRat anWat alCommi ttee.Shealsor eport
edani ssue
rel
atedtorol
eofNat i
onal PaymentsCor por
ati
onofI ndi
a.
GoriparthiandTi wari(2017)hav efounddemonetizat i
onasposi t
ive
stepaheadt odr eam ofDigitalIndi
a.Theyalsoar
guedpol icydirection
bythegov ernmenthi ghli
ght sthetremendousgrowt hpossi bili
ti
esf or
thedigitalpay mentssect orthatisonlyjustst
art
edt oest ablishitself
.
They al so emphasi zed t hatdemonet i
zati
on has al so in a way
dismant l
edsomeoft het r
adi t
ionalbarr
ier
spreventingI ndiansf rom
adoptingdi gitalpaymentsol ut
ionssuchast hehabi tofusi ngcash,
compl exit
yand unf ami l
iari
tyofdi gi
talpaymentsy stems,l ack of
compel l
ingv alueproposi t
ion,and anxietyoverfraud andnet wor k
securi
ty.
Ravi(
2017)i
nhisstudyfoundgreatscopeofdigi
talpay
menti
nrural
I
ndi
a as iti
sf ast
erand cheaper.He also argued t
hatNat
ional
Pay
mentsCorporat
ionofI
ndiahad
dev elopednew pay mentappl i
cation,whichar edesi
gnedt oworkon
allphoneswi t
horwi t
houtinternetandev enwi t
houtphonesishelpi
ng
ruralIndia.Healsoemphasi zedonadv antagesofnewdigit
alpayment
syst em li
ke:reducti
onint ransactioncost ,devel
opmentofI Tactin
suppor tof di gi
talpay mentsy stem,scope f or dev
elopmentof
Informat i
onandCommuni cationsTechnol ogyinIndi
aandeasei nday
settlementf ormerchant
sandsmal lr
etail
ers.
Kumar iand Khanna ( 2017) ment i
oned t hatcashl ess economy
i
niti
ati
vewi l
lbeofsigni
fi
cantbenef i
tstodev elopi
ngeconomy ;hence
thecashlesssystem wi
l
lbehelpfulinthefightagainstcor r
upti
onand
moneyl aunderi
ng.Onemostsigni f
icantcontri
butionoft hecashless
economyi st hatiti
sexpectedt or educet her i
skassoci at
edwi th
carr
yingcashl ikel
ossofcash,t heftandar medr obbery
,whichwi l
l
drast
ical
l
yr educe.Theyhavealsoputanargumentaboutposi
ti
ve
rel
ati
onshipbetweencashl
essandeconomi
cgrowt
h.
Nay ak( 2017)repor
tedSt ateBankofI ndi
a’sresearchdepar t
ment
found thatDemonet izati
on hashel pt henat i
on l
eapfrogged thr
ee
yearsaheadi ndigit
izati
onandt hi
strendi salsoexpect edtolower
i
nf l
ati
on.They had mai nl
yr epor
ted t ot
aldebitand cr editcard
transacti
onsthroughpoi ntofsale(PoS) ,betweenApr i
l16andApr il
17i trose88% andt ransactionthr
oughv ar
iousprepaidinstr
uments
mobi l
ewal let
,PPIcar ds,andpaperv ouchersandm- obil
ebanking
rose122%i nthesameper iod.
Joshi( 2017)concluded thatcur rentgovernmentt ook enhanced
i
niti
ati
vest odevel
opdigitalpaymentsy st
em inIndi a.Hehasst udi
ed
remarkablegrowthi
ndi gi
talpayment sinl
astthreey ears.Hehasalso
observedthatpeoplehav eproactivel
yadoptednew modesofdi gi
tal
payment sandalsohoistedtheusageofnewdi gitalpaymentmodes
overolddigit
alpaymentmodes.Heemphasi zedt hatdemonet i
zati
on
amplif
ied digi
talpaymentt ransacti
ons especiallyin new-f
angled
modesofdi git
alpayments.
PiyushKumar( 2015)conduct edast udyananalysisofgr owthpatt
ern
of cashl ess t ransact i
on sy stem concl uded t hat the cashless
transactionsyst em i
sr eachingitsgr owt hdaybyday ,assoonast he
mar ketbecomegl obal i
zedandt hegr owthofbanki ngsect ormor e
and mor ethepeopl emov esf rom casht o cashlesssy stem.The
cashlesssy stem i snotonl yr equirementbutal soaneedoft oday
society.Al lt he onl ine mar ket basi cal
ly depends on cashl ess
transactionsyst em.Thecashl esst ransiti
onisnotonl ysaferthanthe
casht ransactionbuti slesst imeconsumi ngandnotat roubl
eof
carryi
ngandt r
oubl eofwearandt earl i
kepapermoney .I
talsohelpsin
recordoft heal lthetransact i
ondone.So, i
tiswithoutdoubtsaidthat
futuretransactionsyst em iscashl esst r
ansacti
onsy st
em.
Deepika Kumar i( 2016)in herst udies ofCashl ess Transaction:
Methods,Appl i
cations and Chall
enges concl uded t
hatt he as the
demonet i
zati
onappl iedbygovernmentofI ndia,Governmentt r
y i
ngto
awarei ts peoplef orcashl
ess t ransact
ion by various kinds of
adverti
sementmet hodbutsti
llalargenumberofpeopl eareawai ti
ng
fortheintr
oductionofcashlesst r
ansact i
on.Thispaperi sast udyof
cashless transaction its dif
ferent met hods, adv antages and
chall
enges.Thi s paperwi l
lhelpt o underst
and the basic oft he
cashlesstr
ansaction.
PiyushKumar( 2015)conduct edast udyananalysisofgr owthpatt
ern
of cashl ess t ransact i
on sy stem concl uded t hat the cashless
transactionsyst em i
sr eachingitsgr owt hdaybyday ,assoonast he
mar ketbecomegl obal i
zedandt hegr owthofbanki ngsect ormor e
and mor ethepeopl emov esf rom casht o cashlesssy stem.The
cashlesssy stem i snotonl yr equirementbutal soaneedoft oday
society.Al lt he onl ine mar ket basi cal
ly depends on cashl ess
transactionsyst em.Thecashl esst ransiti
onisnotonl ysaferthanthe
casht ransactionbuti sl esst imeconsumi ngandnotat roubl
eof
carryi
ngandt r
oubl eofwearandt earl i
kepapermoney .I
talsohelpsin
recordoft heal lthetransact i
ondone.So, i
tiswithoutdoubtsaidthat
futuretransactionsystem i scashl esst r
ansacti
onsy st
em.
Saini
,B.M(2015)i
nhisstudi
esofDemonet i
zat
ionMet amorphosisfor
CashlessIndi
a,concl
udet hatcashlesstr
ansacti
onwi l
lleadt o e-
tr
ansacti
ons.Therehasbeenadr asti
cimprovementinel ect
ronic
tr
ansacti
onswhichmayboostcy bercri
me,sowemakepeopl eawar e
ofway st
okeepcredit
,debi
tcardssafeandtotrai
nthem t
ot eachthe
measur estokeepourt r
ansacti
onshasslefree.Weneedspeci all
y
tr
ained cyberpol i
ce,forensi
cl abs wi
th st
at e-of-
the-ar
tevidence
gatheri
ngtools,publicpr
osecutorswhounder standt echnol
ogyand
cybercourtstopuni shcybercri
minal
s.HopeI ndi awillbeinlineof
developedcountr
iesinthedaystocome.
PMani vannan( 2013)inhi sresearchpaper" Plasti
cmoneymeans
l
esspay mentofcash checki ng system”sai dt hatuseofpl asti
c
moneyi st hemeasur eofal uxurycreditcard,andt heneed.The
plast
icmoneyandt heel ectr
onicpay mentsandusedbypeopl eof
hi
gheri ncomecat egor
y.Theext ensi
onoft hisf acil
i
tyisnotonl y
meantf orcust omersi n urban areas orci ti
es,butal so isfor
customer s who l i
vei nr ur
alar eas.Howev er,t oday,witht he
developmentofbanki ngindustry,f
ixedincomegr oupal sobeginsthe
useofpl asticandelectr
onicmoneypay mentsy stemsandespeci all
y
credi
tcar ds.
CBN ( 2011)anef fecti
veandmoder npay mentsy stem isposit
ively
corr
elatedwitheconomi cgrowth.Inthegr owthofGl obaleconomy ,
digi
talcur r
ency has a key r ol
ef or transacti
on of money f or
businessmen,consumer sandgovernmentsar oundt hewor l
d.Almost
25per centofworldwideconsumerspendingwast hroughsomef orm
ofpay mentcard,upf r
om 16percentin2003.Ther eportsays,Di
gital
curr
encydel i
veredanaddi t
ional$1.1tr
il
li
ont othegl obaleconomy
cumul at
ivel
yi nthesixy earsfr
om 2003t hrough2008.Onaverage,
thatrepresentsa0. 5percenti
ncreaseint
otalannualgr
ossdomesti
c
product( GDP).Duringthesameper i
od,r
ealGlobalGDPgrew byan
averageof3. 4percent(Moody’
s,2008).
Ashish Das,and RakhiAgar wal,(2010)int hei
rarti
cle“ Cashl
ess
PaymentSy stem inIndiaARoadmap”Cashasamodeofpay mentis
anexpensi vepr opositi
onf ortheGov ernment.Thecount r
yneedst o
mov eawayf r
om cash- basedtowar dsacashless(el
ectr
onic)payment
system.Thi s wi l
lhel pr educe currency managementcost ,tr
ack
tr
ansactions,checkt axav oi
danceorf r
aud etc.enhancef i
nancial
i
nclusionandi ntegratetheparall
eleconomywi thmainstream.
Rot h(2010)observedthatdevel
opedcountri
esoftheworld,toalarge
extent,aremov ingawayf r
om paperpay mentinstr
ument st oward
electr
onic ones,especial
lypay mentcards.Some aspect s oft he
functi
oningoft hecashlesseconomyar eenhancedbye- f
inance,e-
money ,e-br
okering and e-exchanges. These al
lr ef
er t o how
transacti
onsandpay mentsareaffect
edinacashlesseconomy .
Annamalai,S.andMut huR.Ii
akkuv an(2008)int heirar
ti
cle“ Retai
l
tr
ansacti
on:Futurebr i
ghtforpl
asticmoneyandcashl esst
ransaction”
proj
ected the gr owth of debit and credit cards int he r etai
l
tr
ansacti
ons.Theyal soment i
onedt hegrowthfactors,whi
chl eadst o
i
tspopulari
ty,importantconstr
aintsfacedbybanksandsummar ized
withbr
ightfutureandscopeofpl asti
cmoney .
Subhani( 2008)conduct edast udyon‘ Plasti
cMoneyorCr editCards
Char i
smaf orNow andThen’ .Thest udywasbasedt of i
ndoutt he
charisma ofpl asti
c money ,its usabi li
tyand af for
dabi l
i
tyand i ts
i
mpacton i ts pr
eference t o use.The r esear ch found t hatt he
preferencet ouseofpl ast i
cmoneyorcr edi
tcar dhasi tspr osand
conswi thitsusabili
tyandaf for dabil
it
y.Accor di
ngt ot heconsumer
behav ior,plasti
cmoneyi saf orm ofcondi tioning and act sasa
sti
mul uswhi chquali
fi
esaconsumert ospend.Thest udyshowst hat
thepr eferencetogof orpl ast
icmoneyhasaposi tiveatt
itudet hati
tis
easyt ouse.Theper ceptionofcr editcardusabi li
tyisassoci atedwith
apsy chol ogi
calphenomenont hatpeopl ear elikelytospendl esswith
creditcardandspendmor ewith
thesameamountofcashonhandi nthesamebudgetandt
his
preceptal
sol
i
nkedwi
tht
heconsumersel
f-
conv
eni
ence.
Jai
n,P.
M(2006)i
nthear
ti
cle“
E-pay
ment
s”opi
nedt
hate-pay
ment
s
willbe abl
et o check bl
ack money .Taking full
estadvantage of
technol
ogy,qui
ckpay mentsandremittanceswi l
lensureopt
imaluse
ofav ai
l
ablefundsforbanks,fi
nanci
ali nsti
tuti
ons,busi
nesshouses
andcommonci ti
zenofI ndi
a.Heal sopoi ntedoutt heneedf ore-
paymentsandmodesofe- paymentsandcommuni cati
onnetworks.
Bandier
a( 2004)ar guet hatincreased usageofcashl essbanking
i
nstrumentsstrengthensmonet arypolicyeffecti
venessandt hatthe
curr
entlev
elofe- moneyusagedoesnotposeat hreattothestabil
it
y
ofthefi
nancialsystem.Howev er,itdoesconcludet hatcent
ralbanks
canlosecontrolovermonet ar
ypol icyi
fthegov ernmentdoesnotr un
aresponsi
blefiscalpol
icy
.
Woodf or
d( 2003)Cashlesseconomyi sdefinedasonei nwhichther e
areassumedt obenot r
ansacti
onsf ri
cti
onst hatcanber educed
throught heuseofmoneybal ances,andthataccordingl
ypr ovi
dea
reasonf orholdi
ngsuchbal ancesev enwhent heyearnrateofreturn.
Inacashl esseconomy ,how muchcashi ny ourwal
letispracti
cally
i
rrelevant.Youcanpayf oryourpurchasesbyanyoneofapl ethoraof
creditcardsorbanktransfer.
Quest
ionnai
re:
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ps:
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