Professional Documents
Culture Documents
INDIA
ABOUT US….
NAME:
1.HARSH.GANDHI
2.TANISH.MAHAJAN
SCHOOL:DSK SCHOOL
INTRODUCTION TO THE
SCHEME OF BEING
CASHLESS
• Introduction: India continues to be driven by the use of cash; less
than 5% of all payments happen electronically however the finance
minister, in 2016 budget speech, talked about the idea of making
India a cashless society, with the aim of curbing the flow of black
money.
• Even the RBI has also recently unveiled a document — “Payments
and Settlement Systems in India: Vision 2018” — setting out a
plan to encourage electronic payments and to enable India to move
towards a cashless society or economy in the medium and long term.
FIRST LET US THINK HOW
WE CAN MAKE OUR CITY A
CASHLESS CITY
• Under its Smart City initiatives, Pune Municipal Corporation is taking
proactive measures to transform the way payment are collected to
provide the citizens a more convenient, robust, interactive and user
friendly platform. The new payment platform will allow the citizens of
Pune to make payments on the go – anytime, anywhere and any device.
A thorough understanding of the citizens’ needs and existing payment
channels has encouraged PMC to streamline its systems and procedures
to offer its citizens a user friendly, less human interactive, secure and a
more convenient payment process.
• Keeping the above objectives in mind, a uniform and citizen oriented
payments platform will be created to ensure that all types of collections
and payments can be made without any hassle across any channel, any
payment instrument and anytime. No use of cash will help to overcome
a big problem of change to be given to the shopkeepers.
•
Demonetization: The first step towards cashless India
• Demonetization is the act of stripping a currency unit of its status as legal tender. The demonetisation
of ₹500 and ₹1,000 banknotes was a policy enacted by the Government of India on 8 November 2016,
ceasing the usage of all ₹500 (US$7.40) and ₹1,000 (US$15) banknotes of the Mahatma Gandhi
Series as legal tender in India from 9 November 2016.
• The announcement was made by the Prime Minister of India Narendra Modi in an unscheduled live
televised address at 20:00 Indian Standard Time (IST) on 8 November. In the announcement, Modi
declared that use of all ₹500 and ₹1,000 banknotes of the Mahatma Gandhi Series would be invalid after
midnight of that day, and announced the issuance of new ₹500 and ₹2,000 banknotes of the Mahatma
Gandhi New Series in exchange for the old banknotes. However, the banknote denominations of ₹100,
₹50, ₹20, ₹10 and ₹5 of the Mahatma Gandhi Series and ₹2 and ₹1 remained legal tender and were
unaffected by the policy.
Demonetization: advantages and
disadvantages
• ADVANTAGES:
• The biggest advantage of demonetization is that it helps the government to track people who are having
large sums of unaccounted cash.
• Since black money is used for illegal activities like terrorism funding, gambling, money laundering and
also inflating the price of major assets classes like real estate, gold and due to demonetization all such
activities will get reduced for some time.
• Another benefit is that due to people disclosing their income by depositing money in their bank accounts
government gets a good amount of tax revenue which can be used by the government towards the
betterment of society.
DEMONITIZATION:
DISADVANTAGES
CONTINUED……
• DISADVANTAGES:
• The biggest disadvantage of demonetization is that once people in
the country gets to know about it than initially for few days there is
chaos and frenzy among public.
• The biggest disadvantage of demonetization is that once people in
the country gets to know about it than initially for few days there is
chaos and frenzy among public.
• Another problem is that majority of times this move is targeted
towards black money but if people have not kept cash as their black
money and rotated or used that money in other asset classes like
real estate, gold and so on then there is no guarantee that
demonetization will help in catching corrupt people.
What is cashless
economy and where
does india stand????
• A cashless economy is one in which all the transactions
are done using cards or digital means. The circulation of
physical currency is minimal.
• India uses too much cash for transactions. The ratio of
cash to gross domestic product is one of the highest in the
world—12.42% in 2014, compared with 9.47% in China
or 4% in Brazil.
• Less than 5% of all payments happen electronically
• The number of currency notes in circulation is also far
higher than in other large economies. India had 76.47
billion currency notes in circulation in 2012-13 compared
with 34.5 billion in the US.
• Some studies show that cash dominates even in malls,
which are visited by people who are likely to have credit
cards, so it is no surprise that cash dominates in other
markets as well.
• Reduced instances of tax avoidance because it is financial institutions
based economy where transaction trails are left.
• It will curb generation of black money
• Will reduce real estate prices because of curbs on black money as most of
black money is invested in Real estate prices which inflates the prices of
Real estate markets
Benefits of • In Financial year 2015, RBI spent Rs 27 billion on just the activity of
currency issuance and management. This could be avoided if we become