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Following are the four mediums of cashless transactions :

1. Through cheque
2. Through Internet
3. Through Swipe machine
4. Through ATM machine.

Payment of rail ticket is done through internet banking.

(d) All of these

Correct answer is (a) USSD

Correct answer is (b) BHIM

While using net banking, keep updating your account statement.

(b) Payment by cheque

(d) USSD technique

By the word cashless transaction, its meaning can be understood. It means monetary transaction without the use of cash. This type of transaction is made between buyer and seller without the exchange of money. It is possible by transfer of money directly into the bank accounts. It is a part of e-commerce which started in India a decade ago.

Following are the mediums of cashless transactions :

(i) Payment through cheque or draft: The simplest way for making cashless payment is payment through cheque or bank draft. In this system, buyer keeps the cheque book with himself and can make payment to anyone and anywhere through valid cheques. Similarly, for larger transactions, drafts may be used. This can be drawn in the favour of seller by any bank of choice.

(ii) Payment through internet banking : It is the second main method of making cashless payments. Customer may purchase services from many companies online, through internet banking. In this way, without making cash payment, we may purchase goods and services. Payment of rail tickets, air tickets, film tickets, etc. can be done with the help of internet banking. Purchase order on any goods and services can be made through online shopping.

(iii) Payment by swipe machine : Many commercial banks provide swipe machines to the reputed firms on their current account. Through this machine, shopkeeper receives payments from his customers against sale of goods and services. Payment made through swipe machine is directly deposited into the firm’s account. To avail this service, a customer can use credit card or debit card.

(iv) Payment through ATM machine: Through ATM card, a buyer may transfer money in the account of seller without the use of cash. For this facility, it is essential that account of buyer and seller must be in the same bank. It is also essential to know the IFSC code of bank.

(v) Payment by mobile app: Use of mobile has increased largely these days. In a smart phone through different apps, cashless transactions can be made conveniently. For cashless transactions, many banks have issued E-wallet app. Similarly, many domestic and foreign companies have come up with this type of app in android phones. We can make payments while sitting back at home through E-wallet. Recently, the government of India has issued this type of app by the name of BHIM (Bharat Interface for Money). Honourable Prime Minister has issued this type of app for increasing the confidence of public in digital transactions.

(vi) Payments by USSD technique (Unstructured Supplementary Service Data): Through this technique, we may use an ordinary mobile to take advantage of digital payments. To take benefit of this service, one has to dial *9# from the mobile. He has to enter the first digits letters of his bank or first four letters of IFSC code.

(vii) Payment by Micro ATM : Similarly, by AADHAR enabled payment system (AEPs) through use of Aadhar card, we make payment through Aadhar card on POS (Micro ATM) machines by scanning our finger prints. For this, it is essential that our bank account is linked with our Aadhar number.

Correct answer is (a) NIGS

Following are the four limitations of cashless transactions :

1. Problem for illiterate class : The largest problem proceeding ahead towards a cashless economy is the existence of a big population of illiterate and less educated people. This limits its advantages.

2. Lack of banking habits: It is an important economic problem of developing countries that people do not have banking habits.

3. Apprehension of fraud : Due to apprehension of fraud, people avoid cashless transactions. If they keep their password confidential, fraud is almost impossible.

4. Limited expansion of banking facilities : In a large economy like India, limited expansion of banking facilities is also a huge hurdle in the implementation of cashless transactions.

E-commerce or E-business is an advanced and new technique of business in which business is operated through internet. In e-commerce, not only can a customer purchase goods and services from home, but a seller can also sell his products across the world with the help of internet. Businessmen also obtain customer opinion regarding their products. Internet provides several opportunities for infrastructure, consumer and value added services.

At present, computer telecommunication and cable TV sector is used on large scale in business. From 1990 on wards, business firms have started using internet facility for advertisement and sales promotion. Network of online shopping has become a large part of commercial activities. In 21st century, immense opportunities and competition is being provided to online businesses. Therefore, cashless transaction is possible through digital payment. Government is also focusing on digital payment by which quality products and services can be provided in less time.

AADHAR Enabled Payment System.

(c) Bhiin app

Its simple meaning can be drawn from the term ‘cashless transaction’. This type of transaction is made between buyer and seller without exchange of money. It is possible by transferring of money directly into the bank accounts. It is a part of e-commerce which started in India a decade ago.

Advantages of Cashless transactions : Cashless transactions are the need of time and are also essential, convenient and safe for the economy. In present time, this mode provides a better alternative. Witnessing the fast-developing economies of present time, it is a simple and convenient alternative.

Following are the important benefits of cashless transactions –

(i) Saving of wealth and time : Customer class is benefited the most from cashless transactions. Many types of bills have to be physically deposited on the counter. This involves time and money in travelling. Today, many types of discounts are available on online shopping.

(ii) Freedom from keeping money in cash: For big purchases on special occasions, one has to keep money in cash in heavy quantity either in purse or in pocket, which is very inconvenient, risky and unsafe. By adopting cashless transaction, one gets freedom from keeping cash.

(iii) Reduction of pressure on bank: By cultivating the habit of cashless transactions, unnecessary burden on banks is reduced. People often go to bank for the need of cash. Apart from this, bank has to keep less record of cash transactions. Due to computerization of banks, the money is automatically credited and debited in the account of the customer.

(iv) Increase in revenue : Due to cashless transaction, the money paid by customers is directly transferred into the account of the sellers. This has increased transparency in income declaration and has resulted in increase of tax revenue.

(v) Reduction in black marketing: If transaction becomes cashless, then it becomes easier for the government to assess the quantum of goods purchased and sold. This helps in identifying the stocks of different parties and in reduction of black marketing.

(vi) Restrictions on illegal activities : There are various transactions which are done with the objective of speculation. These transactions are not disclosed to the government. Major illegal activities are common in land and real estate. Registry is made for lesser amount and rest of the amount is paid in cash. This results in heavy loss of tax revenue to the government.

Limitations of Cashless Transaction:

(i) Problem for illiterate class : The largest problem in proceeding ahead towards a cashless economy is the existence of a big illiterate and less educated class. This limits its advantages. Less educated class tries to avoid cashless transactions.

(ii) Lack of banking habits : It is a big problem of developing countries. People do not have banking habits. In a large country like India, under Prime Minister Jan Dhan Yojna, crores of bank accounts have been opened free of cost. But due to non-banking habits, these accounts are non-operative.

(iii) Apprehension of fraud : Due to apprehension of fraud, people avoid cashless transactions. If they keep their password confidential, fraud is almost impossible. This type of fraud is due to negligence and carelessness.

(iv) Useless in many transactions : There are many trades where cashless transaction are not useful such as small businesses, workers, cobblers, washermen, vegetable vendors, milk vendors, daily workers, mechanics, cleaners, etc. Due to small amounts involved, they prefer taking money in cash.

(v) Limited expansion of banking facilities : In a large economy like India, limited expansion of banking facilities is also a great hurdle in the implementation of cashless transactions. In India, banking facilities are absent in several villages. In such state of affairs, cashless transactions become limited to the urban areas only.

(vi) Lack of effective laws to control cyber crimes: In India, presently, we lack effective rules and regulations for the protection of customers dealing in cashless transactions. In the absence of effective laws, cyber crimes take place during cashless transactions, and with ordinary laws it takes a long time and customers suffer.

In Android phones we can download any type of mobile app using Google Playstore.

Cheque books can be obtained from banks.

Economic transaction without cash is known as cashless transaction.

(d) In cashless transactions

Increased circulation of money in cash form in economic transactions of the country, on one hand, encourages black marketing and corruption, and on the other hand, heavy pressure is exerted on the system for issue of currency. Therefore, cashless transactions are the need of the hour and are also essential, convenient and safe for economy.

Following are the precautions that should be taken while performing digital transactions :

1. Keep your ATM PIN code secret.
2. Use mobile app only after verifying it officially.
3. Do not lend your mobile to someone else for use.
4. If you suspect any doubtful transaction, immediately contact the banking authority.

E-commerce is an advanced and new technique of business in which business is operated through Internet. In e-commerce, not only can a customer purchase goods and services from home, but a seller can also sell his products across the world with the help of internet.

(a) 9th November 2016

E-commerce or E-business is an advanced and new technique of business in which business is operated through internet.

(c) Cheque or draft

(c) Rs. 94 crore

(i) E-wallet : It is an App. E-wallet app has been issued by many banks for cashless transactions. Money is transferred to E-wallet account through ATM card or internet banking. We can make payment of bills from home by the help of E-wallets. This app can be downloaded in smartphones. By the use of E-wallet, cashless transaction are easier and safe.

(ii) USSD (Unstructured Supplementary Service Data) : Through this technique, we can make digital payments through ordinary phones also. We don’t require smart phones or internet enabled device. To avail the benefits of this service, one has to dial *9# from the mobile. He has to register the first digit number of his bank or first four letters of IFSC code. After this, he will receive MMID or MPIN. To make the payment, one must know the receipient’s mobile number or MMID number. It is a very simple and convenient method to perform cashless transactions.

(iii) AEPS [AADHAR Enabled Payment System (AEPS)] : We can make payment through Aadhar card on POS (Micro ATMs) machine by scanning our fingers prints. For this, it is essential that our bank account is linked with the Aadhar number. To avail this facility, one must know his/her account number and Aadhaar number.

(iv) NEFT (National Electronic Fund Transfer) : This system is a very popular technique of transferring fund. Through this technique, funds can be transferred to any customer or client in a very short time. This transfer takes some time, but in comparison to convenience it is lesser. This facility was started in November 2005. Today, it is available in almost every national level bank.

Saving of time and money.

Unstructured Supplementary Service Data.

Customers can use debit card cum ATM card and credit card to take benefit of swipe machine.

Bharat Interface for Money.

To Dr. Bhimrao Ambedkar.

BHIM App is a government App.

Bharat Interface for Money.