A Study on Demonetization and cashless economy

1. SDS badamia college of professional
studies , varkana
Demonetization And Cashless
Economy
SHIV SAGAR
BCA FINAL YEAR

2. Contents
 Demonetization
 Advantage
 Disadvantage
 Cashless Economy
 Advantage
 Disadvantage
 Methods of cashless transaction
 Bank Cards – like Credit card, Debit Cards etc.
 USSD – Unstructured Supplementary Service Data
 AEPS --- Adhar Card Enable payment System
 UPI --- Unified payment Interface
 E---Wallets
o A Small poem

3. Demonetization
 Demonetization is the act of stripping a currency unit
of its status as legal tender. Demonetization is
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 that Reserve Bank of
India has withdrawn the old Rs. 500 and Rs. 1000 notes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.

4. What was the reason?
The reasoning given by PM Mr. Modi was:
1) To tackle black money in the economy.
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.

5. AdvantageMain Advantages of demonetization of the 500 & 1000 Rs. Notes
 It 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.

6. Disadvantage
 Main Disadvantages of Demonetization of 500 and 1000 rupee notes
There 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.

7. Cashless Economy
 A 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.

8. Advantage
 To avoid black money transactions
 To avoid time consuming
 To avoid risk
 It helps to economic growth
 It helps to increase security
 It helps to reduce illegal business
 It helps to avoid the threat of counterfeit
currency
 Help to effective utilization of resources
 It help to effective transaction
 To avoid criminal activities
 Reduces the circulation of liquid money

9.  people using the means of e-commerce, mobile banking or
Internet banking for their purchase or for their transaction
 Easy to handle
 The transaction process and purchase will made easy
 Helps to eliminate counterfeit currencies
 If the government finds a person guilty government can easily
block his/her transaction
 The government can control the financial transactions in the
society
 More transparency and easy to track money laundering and
other such activities
 Environmental friendly

10. DISADVANTAGE
 Higher risk of identity theft
 Losing phone
 Difficult for tech
 Overspending
 Failure Rates

11. Methods Of Cashless Transaction
 There 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 .

12. Bank Cards

14. USSD – Unstructured Supplementary
Service Data(*99#)

17. AEPS --- Adhar Card Enable payment
System

21. UPI --- Unified payment Interface

28. Some UPI Apps

29. E-Wallates

31. Some E-Wallets

32. A Small Poem
दुनिया के इस िील गगि में, सूरज ह िंदुस्ताि बिे काम करो कु छ
ऐसा यारो, दुनिया में सलाम करे
र ी चुिौती की बातें तो, वो आतीिं ैं आयेंगीिं
धूप खिलेगी हदि निकलेगा, परछाई भी छायेंगीिं
मिे प ले ी प्रयास में, मिंगल याि उड़ाया ै
घर की परमाणु पिडुब्बी, का डिंका बजवाया ै
तकिीकी स्टाटटअप वाले, टॉप तीि में शाममल ैं
कै शलेश य देश िा ोगा, क िे वाले ज़ाह ल ैं
थोड़ी सी ज़ मत ै ममत्रो, झेलोगे तो काम बिे
काम करो कु छ ऐसा यारो, दुनिया में सलाम करे

33. Thanks SHIV SAGAR
BCA FINAL YEAR