Yunus BLACK BOOK SEM 3

PROJECT REPORT ON
‘A STUDY ON PROSPECTS OF
CASHLESS ECONOMY IN INDIA’
SUBMITTED BY:
SHAIKH YUNUS CHAND
ROLL NO: 2
UNDER THE GUIDANCE OF:
DR. NASEEM AHMAD ANSARI
DESIGNATION: FACULTY
DEPARTMENT: Master Of Commerce

[ Accounts And Finance]
K.H.M.W. COLLEGE
SUBMITTED IN PARTIAL FULFILMENT OF
MUMBAI UNIVERSITY
K.H.M.W COLLEGE OF
MASTER OF COMMERCE
JOGESHWARI (WEST), MUMBAI. 2023-2024

DECLARATION
I, Mr. SHAIKH YUNUS CHAND,

Student of K.H.M.W. College Of Commerce of M.COM [Semester III] hereby declarethat I
have completed my project, titled
"A STUDY ON PROSPECTS OF
in the Academic Year 2023-

2024. The information submitted herein is true and original to the best of my knowledge.
Signature of the Student

(SHAIKH YUNUS CHAND )
CERTIFICATE
This is to certify that, Mr.SHAIKH YUNUS CHAND ,

Student of K.H.M.W. College Of Commerce of M,COM [Semester III] hereby declarethat I
have completed my project, titled
"A STUDY ON PROSPECTS OF
in the Academic Year 2023-

2024. The information submitted herein is true and original to the best of my knowledge.
Signature of the Principal & Examiner Signature of Project

Guide &
Internal
(External Examiner) (M.COM COORDINATOR)

ACKNOWLEDGEMENT
I would like to thank the University of Mumbai, for introducing the M.COM course,
there by giving its students a platform to keep abreast with the changing
business scenario, with thehelp of theory as a base and practical as a solution.
This project would have been incomplete without the endless support and
guidance of DR. NASEEM AHMAD ANSARI, my project guide.
I would also like to express my sincere gratitude towards our respected Principal
Dr. ABID JAGIRDAR.
My friends who have been a great source of inspiration throughout the making of
thisproject, their support is deeply acknowledged.
DATE:
SHAIKH YUNUS CHAND
[M.COM]
INDEX
SR. PARTICULARS PAGE NO.

NO.
1 CHAPTER - 1 INTRODUCTION 1-2
1.1 THE HISTORY OF CASHLESS SOCIETY. 3-6
1.2 TYPES, USES & FEATURES OF CASHLESS MODES OF 7 - 11
PAYMENTS.
1.3 TYPES OF PAYMENTS IN CASHLESS TRANSACTIONS 12 - 15
1.4 CHALLENGES & OPPORTUNITIES OF CASHLESS ECONOMY. 16 - 19
1.5 GOVERNMENT INITIATIVES TOWARDS CASHLESS ECONOMY. 20 - 23
1.6 PRE - POST PANDEMIC SITUATION, ADVANTAGES & 24 - 32
DISADVANTAGES OF CASHLESS ECONOMY.
2 CHAPTER 2 - RESEARCH METHODOLOGY

2.1 OBJECTIVES OF THE STUDY 33
2.2 SCOPE OF THE STUDY 33
2.3 LIMITATION OF THE STUDY 33
2.4 SAMPLE SIZE 33
2.5 DATA COLLECTION 33
3 CHAPTER 3 - LITERATURE REVIEW 34 - 35
4 CHAPTER 4 - DATA ANALYSIS, INTERPRETATION & 36 - 56

PRESENTATION
5 CHAPTER 5 - CYBER CRIME & CYBER SECURITY 57 - 67
6 CHAPTER 6 - CONCLUSION &SUGGESTIONS 68 - 69
BIBLIOGRAPHY 70
APPENDIX 71 - 74
A STUDY ON
PROSPECTS OF CASHLESS
ECONOMY
CHAPTER 1 – INTRODUCTION
Cashless economy is likely to help in imbibing black money, counterfeit fake currency, fighting
against terrorism; reduce robbery and help in improving the economic growth of our country. The
study shows the growth & the future of Cashless economy in India. It is expected to help in growth
and development of economy in India.
The Digital India programme is a flagship programme ofthe Government of India with a vision to
transform India into a digitally empowered society and knowledge economy. “Faceless, Paperless,
Cashless” is one ofprofessed role ofDigital India. As part ofpromoting cashless transactions and
converting India into less-cash society, various modes of digital payments are available. The cashless
transfer is soon becoming the most preferred option and there are a number ofbenefits of going
cashless. The digital or electronic transaction ofthe capital by using net banking, credit cards etc. is
called cashless transfer. People can easily pay their bills online, shop and schedule transactions and
manage all the finances using their laptops or
Smartphone. Going cashless not only eases
one's life but also helps authenticate and
formalize the transactions that are done. This
helps to curb corruption and the flow ofblack
money which results in an increase of
economic growth. The expenditure incurred in printing and transportation of currency notes is
reduced. In a nation like India, cashless transactions are not widespread and this is due to the
technology gap and the lack ofproper education. Though these are the matters of concern, the
government or the financial institutes need to address them to create a strong cashless economy.
A Cashless economy is a situation in which all the financial transactions are made by digital means
rather than physical currencies. In India, most ofthe transactions are made through cash. So, our
Indian Prime Minister had taken a Digital India Initiative.
India is a country where people are living in an economy consist ofmonetary system built by
currency notes and coins. Circulation ofthe currency notes is far higher than other large economies.
In India, too much oftransactions are made through cash. Less than 5% oftotal payments happen
through electronically. But in countries like Sweden and United States, cash transactions take place
only for 3 % and 7 % ofthe total transactions respectively in 2 0 1 2 , former Prime Minister brought this
to reduce the corruption in India. Later the steps taken by the Indian Prime Minister Digital India
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Initiative and also the 2016 demonetisation to remove the black money for improving the cashless
transaction. The basic requirement for making the Cashless transaction is to have a smartphone with
network connection. Prime Minister asked the people to consider mobile phone as a wallet and bank.
After demonetisation the country is moving towards the cashless economy. To encourage the move
towards cashless transaction the government has come up with a special discounts and freebies on
digital transactions. There is no need for standing and waiting in queues, no need for interacting with
bank staff and thus the customers get satisfied.
“WE WANT TO HAVE ONE MISSION AND TARGET: TAKE THE

NATION FORWARD - DIGITALLY AND ECONOMICALLY” – PRIME MINISTER OF
INIDA
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1.1: THE HISTORY OF CASHLESS SOCIETY
We might think of cashless transactions as a modern

phenomenon, with things like credit cards, debit cards,
and contactless payments replacing the traditional bills
in our pockets. However, the history of cashless
transactions stretches back much further than this,
with the Mesopotamians creating a cashless barter
system a mind blowing 8000 years ago.
Today, cash is increasingly losing ground to plastic, electronic payment methods, and
cryptocurrencies. In fact, certain countries like Sweden and India are already making moves to
creating a totally cashless economy. Some reports estimate that the former will be a cashless society
injust 10 years!
 Prehistoric Age: Barter System
• The barter system was introduced some 8 0 0 0 years ago by the Mesopotamians.
• People swapped valuables against an item they wanted from another person.
• Shells, grains, beans, livestock and even lands were exchanged against any required object.
• Salt was another item of great worth. At one time, salt became so valuable that Roman soldiers were
paid their salaries with salt!
• The word ‘Salary’ originates from the Latin word ‘ SAL ’– SALT.
• Since the value of an item couldn’t be fixed, often objects of lesser worth were exchanged against
more valuable items. Thus, fraudulence crept in.
 Bronze Age: Valuable Metals
• About 3500 years ago, valuable metals such as bronze, silver and gold were used as a form of
money.
• Bars and rings ofthese precious and semi-precious metals were produced from which pieces were
cut and weighed.
• Later, bronze, copper, gold and silver coins were introduced for convenience.
• Forgery appeared and gold was mixed with silver or other metals to increase the weight ofthe bars
and coins.
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 Paper Money
• Chinese merchants invented the first form ofpaper money about 1 0 0 0 years ago.
• Marco Polo introduced paper money to Europe in the 13th century after he came back from China.
 Medieval Age - 18th century: The Rise of Cheques
• The 14th century saw the rise of “cheques”. They were convenient bills of exchange that allowed
people to carry funds abroad without actually carrying the gold.
• The first forms of cheques were handwritten and became quite popular by the 17th
• These cheques could be given to a bank in exchange for money. It could also be given to a merchant
with a monetary value written on it that could be later deposited in the bank
The earliest specimen ofhandwritten cheques still in existence was drawn on the bank Messrs Morris
and Clayton based in London. It is dated 16th February 1659 and was for £400. The concept of “daily
clearing” started during the 1 7 7 0 s . Clerks from different banks would meet up at the Five Bells Tavern
in the Lombard Street in London to exchange their cheques and settle all transactions. Printed cheque
books were introduced during the late 18th These cheque books were easier to carry while travelling.
 19th century: Money Transfers
• Bank transfers or wire transfers started during the mid- 19th

• Western Union launched the first widely used wire transfers service in 1 8 7 2 .
• It used the telegraph network for the transfer. Once the sender paid money to one telegraph office,
the operator would send the message to another office and the fund would be released the recipient.
• Using passwords and codebooks, this method oftransaction and sending money was pretty
convenient. People from any region could send funds across the globe.
• By 1877, almost $2.5 million was transferred each year through this service.
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 20th century: Convenience of Cards
• During the early 20th century, banks started issuing plastic cards along with cheques known as
“cheque guarantee cards”. The bank details would be embossed on the card and printed on the
payment slip of the cheque through an “imprinter” .
• The first ever transaction card was a metal card provided by the US Western Union in 1914 allowing
free deferred payment privileges.
• The first bank card, CHARGE – IT, was introduced by the Brooklyn banker, John Biggins in 1946.
• A customer could use this card for a purchase as the bill would be forwarded to Biggins’ bank. Later
the bank would settle the merchant’s amount and obtain the payment from the customer.
• The first ATM card was issued by Barclays in London in 1967.
• By the 70s, cards with magnetic strips came in. Lloyds Bank introduced the first bank card to have
an information-encoded magnetic strip using a pin for security.
• The mid 80s saw the introduction of electronic Point of Sale (POS) terminals where customers can
swipe their cards through a “swiper” for transactions.
The 21 st Century: Digital Transactions In the late 20 th and early 21 st century, innovative technologies
have led to the emergence of a whole new wave of cashless payment technologies. Payments have
become evermore convenient
 Online Payments
• In 19 9 4 , Stanford Federal Credit Union was the first bank to offer online transactions for all
customers.
• In 2000, PayPal was launched following the merger of Confinity and X. Com, allowing online
payments between individuals.
• PayPal now has 254 million customer accounts and in 20 17, PayPal processed 6 billion payments.
• In 2007, Western Union tied up with GSMA to develop mobile money transfer, allowing money to
be sent directly to mobile devices.
• In 2018, 70% ofpeople in the UK now bank online.
Before online payments everything was paid for in case so there were never any worries, even for
businesses in taboo industries. Now, those taboo businesses would have to get ahigh risk merchant
account.
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 Cryptocurrency
• Bitcoin version 0. 1 was released in 2009 and was the first established cryptocurrency, offering an
alternative to traditional banks.
• Bitcoin calls itself a ‘secure decentralized working digital currency’, offering freedom from financial
institutions and governments, and user anonymity.
• In December 2017, the price of one bitcoin hit an all-time high of $19,783.
• Beyond Bitcoin, there are now 1,658 cryptocurrencies in circulation.
 Contactless & Mobile Payments
• In 2007, the first contactless cards were issued in the UK by Barclays.

• By 2014, there were around 58 million contactless cards in the UK.
• Several online payment services emerged in the last decade. Google Wallet emerged in 2013, whilst
Apple Pay launched in 2014. Both systems allow contactless payments from phones.
• Smartwatches and other wearable devices can be equipped with Apple Pay or Google Pay for the
ultimate in payment convenience.
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1.2: TYPES, USES & FEATURES CASHLESS MODES OF PAYMENTS.
 TYPES AND USES

There are numerous ways to go cashless. Here are
some of the best methods to help you pilot your
way into a cash-free world:
1. Cheques and Demand Drafts

A cheque is one of the safest and oldest
methods of cashless payment. A cheque is
issued to a person or business for a specific
amount. This cheque is deposited in the
receiver’s bank, and the money is received through a payment processed by a
clearinghouse. A demand draft is safer than a cheque because it cannot be defaulted or
dishonoured, unlike a cheque. The DD is signed by a banker to ensure that sufficient funds
are available for a successful transaction. The disadvantage of cheques and DDs are that
they are time-consuming because a person has to visit the bank and then wait for the
cheque or DD to clear.
2. Debit and Credit Cards

Debit and credit cards have caught on as a method of cashless trading. A debit card is
considered by many to be safer because you are transacting with money in your account.
The risk with a credit card is overspending. Debit and credit cards can be used to make
purchases online as well as over-the-counter at a store.
3. UPI Applications
UPI stands for Unified Payment Interface. UPI has changed the way we transact. At the
core of a UPIs functionality is the fact that our mobile numbers are registered with our
respective banks and linked to our accounts. A virtual payment address helps to send or
receive money without entering any bank related information. Merchants would need to
have a current account to receive UPI payments. UPI applications that are currently
popular are BHIM, PhonePe, Google Pay/ Tez, ICICI Pocket, and SBI Pay.
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4. Mobile Wallets
Mobile wallets have become a convenient way of making payments without cash. Once
you load money into your mobile wallet, you can use it wherever it is accepted. The most
popular mobile wallet that is trending is Paytm. The disadvantage with mobile wallets is
that it isn’t linked to your account. Once you load the money into your mobile wallet, you
can only spend it with a merchant who accepts payment through the said app.
5. NEFT & RTGS
National Electronic Fund Transfer and Real Time Gross Settlement are electronic
payment systems that allow convenient fund transfer between bank accounts. Both
facilities are maintained by the RBI (Reserve Bank of India). The facilities can be used to
transfer money only within India. The RTGS transfer window is from 8 am to 4.30pm on
weekdays and bank working days. NEFT settlements happen in deferred batches between
8 am to 7 pm on bank working days. There is no facility for ‘ stop payment ’ instructions in
case of either system and the payments made are irrevocable.
6. IMPS
IMPS, which stands for Immediate Payment Service, is a service that was initiated by the
National Payment Corporation of India. The pre-condition to avail IMPS services is that a
user needs to also register for mobile banking. Once registered, the user may avail of the
IMPS service even through internet banking. Money can be sent or received 27*7 , and
there is no cut-off time for transactions. IMPS can be done using the receivers MMID
(Mobile Money Identifier) or IFSC code and bank account number. The advantage of
IMPS over NEFT and RTGS is that it is received instantly.
7. USSD
Unstructured Supplementary Service Data is a cashless option for those who do not
carry a smartphone or tablet. It works without an internet connection as opposed to most of
the other digital payment services. It is a form of mobile banking where you must dial
*99# to use the service. The service mirrors the IMPS service and uses MMID with a
mobile number or IFSC code with the account number for the transaction to be successful.
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8. ECS
ECS stands for Electronic Clearance Service. It is a convenient method to make bulk
payments, especially to pay off your utility services, equated monthly instalments, and for
financial institutions to disburse payments like pensions, salaries, or dividend interest.
ECS can be used for both debit as well as credit services. Authorisation has to be provided
to your bank for periodic debits or credits to be made. It is a safe method because
instructions can be given regarding maximum sum to debit, validity period for the said
mandate, or purpose of the transaction.
9. QR Codes
QR codes are an extension of the mobile wallet payment services. You simply scan the
code of the merchant service to complete your transaction. This would require a smart
device with a camera and a scanning facility. It is a quick and hassle-free method of
transacting digitally .
10. Net Banking
Net banking is an alternative to using your debit or credit card. The user needs to login to
their net banking account to approve a payment. Net banking gives you the flexibility of
transacting even if you have misplaced your debit card or lost it. You can use internet
banking to make utility payments, purchase goods and services online, or send and receive
money.
11. Gift Cards or Vouchers
Gift vouchers are a handy way of going cashless and are a great gift idea because the
receiver can decide what they would like to purchase with the voucher. Stores also give
out discounts on gift vouchers which work well for the purchaser as well.
12. NFC
NFC stands for Near Field Communication. It is a contact-less communication

technology which works on the principle of radio frequency (RF) field using a base
frequency of 13.56 MHz
We know that FASTag is used for toll collection from the vehicles. FASTag is a sticker
with a unique identification number that uses Radio Frequency Identification
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(RFID) technology that enables every user to make payments directly from the running
vehicle. It is in fact using the Near Field Communication (NFC) technology.
National Payments Corporation of India (NPCI) provides the infrastructure to the

whole banking industry, both physical and electronic payment system.
The services controlled and monitored by National Payments Corporation of India (NPCI)
are as follows:
• NFS: National Financial Switch (NFS) ATM network

• IMPS: Immediate Payment Service (IMPS)
• AePS: Aadhaar- enabled Payment Service (AePS)
• CTS: Cheque Truncation System (CTS) RuPay card payment system
• NACH: National Automated Clearing House (NACH)
• APBS: Aadhaar Payment Bridge (APB) System
• USSD-based mobile banking service
• UPI: Unified Payments Interface (UPI)
• Bharat BillPay
• NETC: National Electronic Toll Collection (NETC)
• BHIM: Bharat Interface for Money (BHIM)
• BharatQR
13. Cryptocurrency
Cryptocurrency is an advanced and innovative payment tool. Bitcoin, the first

cryptocurrency was invented in 20 0 8 by an unknown person or group of people who call
themselves or individual as Satoshi Nakamoto.
14. POINT OF SALES (PoS)
The point of sale (POS) or point of purchase (POP) is an outlet, where payments are made
through payment terminals, touch screens or NFC. A point of sale (POS) is a place where a
customer executes the payment for goods or services and where sales taxes may become
payable. A POS transaction may occur in person or online, with receipts generated either
in print or electronically. Cloud-based POS systems are becoming increasingly popular
among merchants .
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 FEATURES OF CASHLESS ECONOMY
There are numerous benefits to having a cashless economy. Although it will take India a few more
years to be a completely cashless economy, cashless transactions in India have seen a steep upsurge
since the quarter first of 2 0 1 7 .
1. Being a cashless economy furthers

the cause of digitisation and takes
us one step closer to utilising
technology at its finest.

2 . Physical thefts and robberies will
reduce with a reduction in cash circulation.
3 . The printing cost for currency will come down by and large. Fake currency issues will also
reduce.
4 . Cards and Mobile Wallets are handier to carry around and take up less space than cash.
5. It becomes easier to follow your expenditure because everything is tracked online.
6. Discounts and cashbacks are being offered for making online payments. Reward points are also
being offered by mobile wallets and UPI applications to entice more users.
7. Service tax has been waived on card transactions up to ₨ 20 0 0 .
8. Transacting online improves your budgetary discipline. Having less cash in your wallet forces you
to cut down on the smaller yet regular expenses that sneak up into your expenditure list.
9. Transacting online can help you with exact amounts. This means that there is no fighting for small
change or paying an extra rupee because you are short of coins.
10 . In case of loss or theft of cards, it can be blocked within minutes to prevent misuse.
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1.3: TYPES OF PAYMENTS IN CASHLESS TRANSACTIONS
PERSON TO PERSON (P2P)
Person to Person (P2P) payment providers have been growing in popularity as we carry
less cash and do more of our banking and payments online. The growth of mobile devices
has led many to search for the best P2P payment services that can meet their needs, no
matter which device they choose to use.
What is a P2P Bank Transfer?

P2P stands for “ Person to Person” which means a P2P bank transfer is simply a transfer of
funds between your bank account and the bank account of another individual. The
transaction is initiated and completed by the two people exchanging funds with banks
simply providing the network to complete the transaction. No physical cash has to change
hands and the money is sent safely and securely directly to a bank account. As a result,
transfer times are extremely fast with many transfers being completed in just a few
minutes.
It may sound like such a rapid solution could be a complicated process but P2P transfers are
actually remarkably simple. The transaction can be completed using online banking or your
mobile banking app. Simply select who you would like to send money to, complete the details of
the transfer, and enter your debit card PIN to confirm the transfer. Once the money is sent, the
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recipient will receive a link by text or email, fill in their banking details, and have the funds
deposited directly to their account, often by way of their debit card.
The whole process is fast, secure, and reliable. Sending money, sharing payments, and delivering
a gift has never been so simple.
BUSINESS TO PERSON (B2P)
B2 P or Business to People marketing

is a set of strategies for achieving
ideal response between the end user
and business. It recognizes that it is
not businesses that make the purchase
decisions, but the people are
responsible for making such
decisions.
The B2P model is aimed at the emotional factor of advertising and forming a personal connection
with the buyers. Business-to-people (B2P) marketing takes note of such unique individuals, who will
never be described in the market segmentation of an everyday B2C campaign. Those who engage in
B2P marketing approach their business customers not as mere organizations, but as individual people
with unique wants, expectations, and tastes.
 Benefits of B2P Marketing
• It provides a human touch to your business instead of making it sound like a faceless entity.
• Building brand loyalty and awareness among your customers is simple.
• B2P marketing helps in improving customer satisfaction.
• You can understand your target audience and their decision-making pattern.
• With the detailed customer insight, you can serve them the best with personalized content.
Business-to-people marketing is conducted by any business willing and able to get feedback from
individual customers, whether those customers are end consumers or other businesses with customers
of their own. Some notable examples include:
• target the people who make business decisions

• see past the business client to the customers of that client
• use customers ’ online activity to channel effective information.
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• Amazon.com, which uses information about what a customer is looking at or has already bought
in order to suggest other items
• Dell Computers, which gives customers the option to “build their own computers” by making
choices on a component basis
• Nike shoes, which allows consumers to customize their Air Force Ones
• Real estate brokers, who can use your IP address to suggest homes for sale in your area
• Small businesses with Facebook fan pages, which can interact with fans on a one-to-one basis.
BUSINESS TO BUSINESS (B2B)
The Definition of Business-to-Business Payments or B2B payments is the transfer of value

denominated in currency from buyer to supplier for good or services supplied. B2 B payments can be
a one time or recurring transaction depending on the contractual agreement made between the buyer
and supplier. B2B payments are more complex than business-to- consumer or B2C payments, since
B2B payment processing requires more time to approve and settle the transaction which can take days
or weeks. Whereas in B2C payment processing, the transaction is typically settled on the spot.
 Types of B2B Payment Methods
The most common types of B2B payment methods are paper checks, ACH payments, wire
transfers, credit cards, and cash. Each B2B payment method has its own set ofbenefits compared
to the next and here are how the different types of B2B payment methods differ.
• Paper Checks
Despite technological advances in 2020 , checks remain the most- common method of B2B payment,
used for 80 percent of all business-to-business payments, according to PYMNTS. com.
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• ACH payments
Automated clearing house payments or ACH payments are electronic payments and have
become commonplace in recent years, with the National Automated Clearing House Association
reporting that the ACH Network processed a staggering 24 . 7 billion payments in 2019 , or more
than three for every person in the world. They’ve also become common for B2B transactions,
with 93 percent of workers receiving payment through direct deposit, per a 2019 survey. NACHA
also projects that ACH payments will soon account for around half of all B2B payments.
• Wire transfers
Wire transfers represent less than 1% of the total number of B2B payments, but make up 93% of
the total amount because they are often high-value payment transactions according to Glenbrook.
While wire transfers don’t account for a fraction ofpayments that checks do — with a recent
Federal Reserve study noting “if only 2 percent of the current corporate check volume moved to
wire, wire volume would increase 47 percent” — they still accounted for 95 million payments
according to that study. These payments typically happen one of three ways: Fedwire, CHIPS, and
RTP.
• Credit cards
Credit cards aren’t overly popular in the B2B payment world, since some vendors prefer to duck
the 3-4 percent processing fees that credit card companies often charge. That said, many
businesses still make frequent use of plastic and are sometimes willing to accept payment by
them. Payments Journal found that 93 percent of small businesses were accepting Visa as of 2019 .
• CASH
Cold hard cash remains a surprisingly common form of B2 B payment, with 7 0 percent of
small businesses still accepting it as of 2019 , according to Payments Journal
1.4: CHALLENGES & OPPORTUNITIES OF CASHLESS ECONOMY
 CHALLENGES
There are many challenges facing the introduction of cashless system of payment in Indian
economy. They are as follows:
High Cash Dependency

India has a high cash penetration in almost all of its transactions that happen as B2C
transactions. Total cash flow in the market accounts for 12.04% of the GDP, which is
among the highest in developing countries.
Lack of Digital Infrastructure

Lack of adequate infrastructure is a major hurdle in setting up a cashless economy.
Inefficient banking systems, poor digital infrastructure, poor internet connectivity. The
remote areas are still not having the banks at their doorstep. There are no ATM facilities in
the remote areas. In 20 1 4 , there were just 18 ATMs and 13 commercial bank branches for
every 100,000 adults – in comparison; the number in Brazil was 129 and 47 respectively.
From 2013 to 2015, debit cards grew twice as fast as the number ofPoS terminals and 1.5
times the number of ATMs, with the majority of the new infrastructure-taking root in
urban centers. The banks need to be fully equipped to handle the surge in e-transactions.
The first and foremost requirement of a digital economy is the penetration of internet and
smart phone. Only 3 0 % of subscriber use smart phones, over 7 0 % ofthem are in cities
while 70% of Indian population lives in villages.
Financial Inclusion
About 60 % of the country ’s population has bank accounts. Still large number ofpeople is
not having the bank accounts. More than 22 8 million accounts were opened under PMJDY
( Pradhan Mantri Jan Dhan Yojana) scheme until July 20 1 6 . 25 2 Inspira- Journal of
Commerce, Economics & Computer Science: Volume 04, No. 01, Jan.-Mar., 2018.
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Cyber Security Issues
Another mounting challenge in digital payments is cyber security issues, with the
magnitude with which digital transaction-taking place after demonetization the risk of
online fraud, leakage 52 3 International Journal of 36 0 Management Review, Vol. 07 , Issue
01, April 2019, ISSN: 2320-7132 of confidential information, cyber-crimes, malware and
virus attacks has been raising. This is the biggest concern to deal with in order to
popularize digital payments.
Low Literacy Rate

Low literacy rate hinders the accessibility of banking services. Citizens should not only
know how to read and write but also possess basic ICT literacy to fully enjoy the benefits
of E-payments.
Costly Swipe Machines

Swipe machines are also not subsidy free. Rich shopkeepers can only afford it. It cannot
be expected from an auto driver or a normal grocery seller to afford swipe card machines.
Besides, many street vendors, shopkeepers do not know how to use swipe machines.
Few Banks in villages

The capital city New Delhi alone has about 20 HDFC bank branches. There are several
villages and Tehsils that do not even have one. More the banks, more the cash deposits in
accounts. Banks in villages should be helpful in teaching the residents the process, usage
and benefits of plastic cards.
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 OPPORTUNITIES
The expenditure incurred in printing and transportation of currency notes is reduced. Cash less
economy helps in curbing generation of black money.
Reduce cost ofprinting money

Printing money is the direct cost that affects the bank (Reserve Bank of India). In the cash
system of economy where maximum people will work on the cash transaction, government
has to produce more and more cash notes.
Decreased Crimes
The risk of theft will continue until people carry cash and by going cashless, the same can
be reduced. The government, however, has to take measures to curb the online scam and
identity theft incidents.
Cost effective to Banks

Normally, ifbank transactions are done manually, it costs nearly Rs. 40 to 45 and the same
is done through internet it costs 7 to 8 . Simultaneously, it same transactions is done
through either 524 International Journal of 360 Management Review, Vol. 07, Issue 01,
April 2019, ISSN: 2320-7132 U Mobile or ATM it hardly costs Rs. 12 to 14 and Rs. 3 to 4
respectively. Production of coins and paper currency is indeed an expensive endeavour.
Safe and Secure

Both it is safer for bank and customer as well; it keeps high degree of secrecy. If stolen, it
is easy to block a credit card or mobile wallet remotely.
Improved Economic Growth

Shopping online gets easy as one can use a number ofpayment options; from credit and
debit cards to net banking. In addition to this, going cashless also has health benefits. With
physical currency, the chance of spreading of germs is more.
18
Control of Black Money and check for Anti money laundry
Even transactions can be done through e banking but it can be traced while it is very
difficult to trace the transactions in cash. There is certain check also in depositing and
withdrawing money through bank accounts. Hence, it will definitely control over black
money and money laundering in the days to come.
Higher Revenue
A derivative advantage of transparent transactions is collection of tax will increase. Thus,
generating higher revenue for the government, this in turn will be converted into public
welfare policies and schemes.
Saves Money and Time

Presently banking is required good number of staff to attend and redress the complaints at
different stages. They can reduce costs, as they no longer need the manual accounting
work to be done.
Transparency
It is not just the easiest way to transact but also brings about a lot more transparency in
the financial system, which helps to curb generation of black money.
Reduced Red-tapism and Bureaucracy

With cashless transactions through electronic means, the wire transfers are tracked and
people are accountable which in turn reduces corruption and improve service time.
Benefit to Government
The government will benefit from the cashless economy in the area of adequate budgeting
and taxation, improved regulatory services, improved administrative processes
(automation), and reduced cost of currency administration and management (Ashike,
2011) . Jimi Agbaje, one of the former governorship candidates on the platform of DPA in
Lagos State states that the advantages of a cashless society range from regulating and
controlling to securing the financial system of our economy.
Maintenance Cost
Maintenance in the form of storage of notes, transportation of the notes to the distant
places, security of the notes, and devices for the detection of counterfeit notes. The other
major aspect of the maintenance is that the distribution of money through ATM machines
at the different locations. It is reported that all this maintenance cost the government about
5% of the GDP of India. In nutshell we can save somewhere around 500 crores by this
mean only.
19
1.5: GOVERNMENT INITIATIVES TOWARD CASHLESS ECONOMY.
The first move taken was the Demonetization in November 2016. At the time of demonetization,
India’ s cash to GDP ratio was around 1 2 % . After demonetization, that ratio came down to around
9% ofthe GDP. But after that, it grew at a slower pace but steadily.
Paytm
Paytm had witnessed 5 million daily usage post demonetisations as opposed to their average
transaction ofthree million. It also saw a 700% increase in the overall traffic and a 1000%
increase in the amount ofmoney added to its account in the first two days ofpost-
demonetization. Ola Money too saw a 1500% increase in its e-wallet.
UPI India’s biggest and boldest payments interface bet yet –
 What is UPI?
Unified Payments Interface has been launched by National Payments Corporation of India
(NPCI) to further RBI’s vision oftransitioning towards a “less-cash” and more digital
society. A set of standard application programming interfaces (APIs) provide an interoperable

system for seamless transfers, and it has been built on top ofthe immediate payment service
(IMPS) platform. The UPI ecosystem functions with 3 key players:
 Payment service providers (PSPs) to provide the interface between the payer and the
payee. Unlike wallets, here the payer and the payee can use two different PSPs.
 Banks will provide the underlying accounts. In some cases, the bank and the PSP may
be the same.
 NPCI will act as the central switch by ensuring Virtual Payment Address (VPA)
resolution, affecting credit and debit transactions through IMPS.
Direct Benefit Transfer (DBT)
It is a scheme that was launched by the Government of India to transfer the benefits and
subsidies ofvarious social welfare schemes like LPG subsidy, Old Age Pension, Scholarship,
MGNREGA, etc. directly to the bank account ofthe beneficiaries. This allowed for the
penetration of digital banking into rural India.
20
NITI Aayog Committee
The Centre has setup a committee headed by NITI Aayog CEO Amitabh Kant, to formulate a
strategy to expedite the process oftransforming India into a cashless economy.
The panel istasked with identifying various bottlenecks that are affecting access to digital payments.
The panel will engage regularly with all stakeholders - Central ministries, regulators, state
governments, district administration, local bodies, trade and industry associations to promote
adoption of digital payment systems.
The idea is to establish and monitor an implementation framework with strict timelines to ensure that
nearly 80% ofthe transactions in India moves to the digital-only platform
The committee will also try to estimate the costs involved in various digital payments options and
oversee the implementation ofthese measures to make such transactions between the government
and citizens cheaper than cash-based transactions.
Pradhan Mantri Jan Dhan Yojana,
One ofthe biggest financial inclusion initiatives in the world, was launched in 2014. It is a national
mission on financial inclusion which has an integrated approach to bring about comprehensive
financial inclusion and provide banking services to all households within the country. This scheme
ensures access to a range of financial services like availability ofbasic savings, bank accounts,
access to need-based credit, insurance and pension. It has played a significant role in the opening of
bank accounts for the poor.
Panel of Chief Ministers
The Centre has announced the setting up of a 13-member committee, which includes 6 Chief Ministers,
to come up with an action plan to rapidly expand the use of digital payment platforms across the country.
The committee would beheaded by Andhra Pradesh CM Chandrababu Naidu and would also include
NITI Aayog Vice-Chairman and CEO and top names from the industry and academia as special invitees
.
 The terms ofreference ofthe committee include identifying global best practices for implementing
an economy primarily based on digital payments and examine the possibility of adopting these global
standards in the Indian context.

 The panel will also outline measures for rapid expansion and adoption ofthe system of digital
payments like cards (Debit, Credit and pre-paid), Digital-wallets/ e-wallets, internet banking, Unified
21
Payments Interface (UPI), banking apps, etc. and shall broadly come up with the roadmap to be
implemented in one year.
Ratan Watal panel on digital payments
The panel, headed by former finance secretary Ratan Watal, was constituted in August to suggest ways
to encourage India’s movement towards a cashless economy.
Way Forward
India must learn from other countries in the

developing world, which have managed to
reduce their dependence on cash even while
bringing in more people in the folds ofthe
formal banking system. Kenya has been a well-
documented success story, where mobile
money has spread much faster and deeper than
in India. Kenyan households with access to mobile money were able to manage negative economic
shocks (likejob loss, death of livestock or problems with harvests) better than those without access to
mobile money.
The path forward is clear:
Invest in building the required financial and digital infrastructure
A nationwide financial and digital literacy campaign accompanied by a medium-term strategy to

improve access to, and awareness of, electronic payments. Targeted financial education programs
can improve financial skills and credit management, and increase account ownership.
the government must undertake the herculean task of changing attitudes towards digital payments
among customers and merchants
Put in place all necessary

cybersecurity measures.
22
 National Payments Corporation ofIndia (NPCI)
National Payments Corporation of India (NPCI), an umbrella organization, is an initiative of

Reserve Bank India (RBI) and Indian Banks ’ Association (IBA) under the provisions of
the Payment and Settlement Systems Act, 2007, for operating retail payments and settlement
systems in India. NPCI was founded in 2008. This organization first launched an instant 24-
hour×7-days interbank electronic fund transfer service through mobile phones.
 Digital India
The Government of India has launched the Digital India program on 1 July 2015. This initiative
includes Bharat Net, Make in India, Start-up India and Stand-up India, industrial corridors,
Bharatmala, Sagarmala for digital locker, e-education, e-health, e-sign, e-shopping and national
scholarship portal. For these online platforms, cashless transactions have become popular.
Indians were among the earliest issuers of coins in the 6th Century BC besides Chinese and
Lydians from the Middle East in the world. The Indian economy has gone through many
transformations during different times. Various cashless instruments have had also been launched
by the Government of India in the recent past. In 2016, the central government took various
financial moves to encourage the use ofplastic money in the union budget. The Government of
India’s Digital India initiative makes cashless transactions popular. The RBI and the Indian
government had already made various efforts to promote digital payment modes including
prepaid payment instruments and plastic cards instead of liquid cash. A committee of seven
members under the chairmanship of Mr Neeraj Kumar Gupta was also formed in 2016
for minimizing paper cash-based transactions in the Indian economy. As a step towards
cashless India, RBI has brought the Vision-2018 for Payment and Settlement Systems in India in
June 2016 to encourage and maximize the use of electronic payments and to achieve a cashless
society. In addition to this, technology has made a huge development. Electronic payments
systems like core banking solutions, mobile banking, prepaid instruments are becoming very
popular.
23
1.6: PRE - POST PANDEMIC SITUATION, ADVANTAGES &
DISADVANTAGES OF CASHLESS ECONOMY.
 PRE - POST PANDEMIC SITUATION OF CASHLESS ECONOMY
The coronavirus pandemic introduced numerous changes into our daily lives. As impactful as social
distancing, wearing masks and repeated handwashing were, they may not have the most significant
long-lasting effect. The pandemic forced many people who normally used cash money to switch to
digital payment methods ― and this could be a lasting change. In the current COVID- 19 situation, the
digital payments sector witnessed a decline of~30 per cent in the transaction value, and recent data
made available from National Payments Corporation of India (NPCI) attest to a sharp decline observed
in the months when lockdowns were initiated (primarily due to the impact on the travel, hospitality and
retail sectors). However, Government and regulator have pushed digital payments in such times by
means ofNational electronic funds transfer (NEFT), Immediate payment service (IMPS), UPI, BHIM
etc. so as to avoid usage ofphysical cash which has higher risk element of COVID- 19 transmission.
Such efforts along with opening of economy are further reflected in the recoveries observed in various
digital payment platforms on NPCI in a relatively short period oftime. This clearly indicates that the
detrimental impact of COVID- 19 on digital payments, although significant, is not lingering and digital
payment ecosystem in India is expected to evolve rapidly to help shape the post-COVID- 19 era growth.
However, consumer awareness and security concerns continue to be amongst the biggest hurdles faced
by the industry, and needs continuation of sustained collaborative drive from banks, payment providers,
regulators and government. The lockdown period was the period of significant limitation in spending
among consumers, along with deferral ofmultiple routine monthly payments. Lockdowns caused
significant uncertainty in decisions with respect to quantum and timing of spending and payments among
consumer and also a considerable reason for curtailment ofthese digital payments was a near standstill
observed in transport, travel and allied leisure accommodations, most noteworthy ofwhich being
suspension of Indian Railway services, which holds considerable share in monthly transactions This is
reflected by a ~49 per cent decline in value of overall NPCI payment products observed across digital
payment modes in April 2020, compared
to March 2020 payments.
24
Various payment methods used in India have responded diversely and distinctly to the changes brought
forth by the COVID- 19 pandemic. The following table summarizes our view about the impact COVID-
19 has had on various modes ofpayment:
25
26
27
28
The downward impact of COVID- 19 on the payment landscape has been profound and significant,
yet not irreparable. Elements in the payment ecosystem are most adaptable to disruption and least
dependent on physical infrastructure have been able to withstand, mitigate and even so far as
capitalize the crisis, turning an imminent threat to their advantage. The pandemic has compelled
individuals as well as organizationstore-evaluate their payment framework and infrastructure so as
to incorporate considerations of disruption mitigation and continuity planning Additionally, the
pandemic has put a spotlight on inherent flaws brought forth by rigidity or inflexibility ofbeing
overly reliant on cash as a sole method ofpayment, for many legacy players in the industry as well as
individual consumers. The COVID- 19 crises called into question the assumption of cash being the
ultimate liquid asset, causing payers to evaluate its consideration as a sacrosanct payment method
with the most access and convenience. Payers have displayed considerable apprehension to revert to
cash payments once they have accepted digital modes ofpayment. That being said, cash is not
expected to disappear anytime in the near future. Cash withdrawals in the NFS network have
displayed signs ofrebounding to pre-COVID- 19 levels indicating that the Indian populace has a
certain proclivity and propensity to transact in cash. Thus, COVID- 19 may have given a sizable push
in the endeavour to marginalize cash transactions, but not so far as to eradicate it completely.
Nevertheless, COVID- 19 has been a silver lining, in many ways, for acceptability of digital
payments in India. A key factor that served as a festering barrier towards the growth of digital was
the impenetrability of existing payment infrastructure. However, the disruption caused by the
pandemic allowed businesses the bandwidth to step back and reconsider their payment protocols for
inclusion of digital from a streamlining and ease perspective. Also, individuals were inclined to
consider digital payments in lieu ofprevention to physical access to their funds As highlighted by the
polls conducted, apprehension towards digital payments, due to lack of awareness, infrastructure
availability, technicality and costs involved played key reasons for non-adoption of digital payments
by individual payers. Whereas, in case of, business payments, the entire payments chain around a
particular organization needed to accept digital payments, especially suppliers, for the organization
itselfto adopt digital payments. COVID- 19 enabled a lot ofthis universal and engrained changes
made necessary for digital inclusion, since it served as common ground for entire business payment
systems to consider going digital at a common period oftime. Further, individuals surpassed initial
acceptability barriers to adopt digital because the epidemic and its restriction ofmovement served as
the foremost incentive, to consider, in urban as well as rural areas. Rural economies were compelled
to consider the AePS mechanism which led to an unprecedented rise in the transaction volumes post
lockdowns. Considerations around digital fraud and cybersecurity are geared to gain increased focus.
Fraud security and vulnerability have been themes reflected in the surveys conducted to display
apprehension towards contactless card transaction limit enhancements and wider usage of other
digital payment methods. Also, with an increasing quotient of Indian populace, transacting digitally,
spending behaviours and patterns are slated to become more accessible, which in turn, greatly
highlights the already increasing value ofbusiness analytics to assess and understand payer
behaviour. Banks and other payment agencies are expected to invest heavily in smart and efficient
fraud detection and prevention architecture such as data analytics and artificial intelligence. In
summation, the impact of COVID- 19 on the digital economy has been complex and multi-faceted.
The increased adoption in the short term is likely to accelerate the sustained shift toward digital
payments. Also, the pandemic has uncovered new perspectives and opportunities for Indian
businesses and individuals, which can only be capitalized upon, by due agility and versatility to
anticipated change.
29
ADVANTAGES &DISADVANTAGES OF CASHLESS ECONOMY
 ADVANTAGES
Transparency:
Electronic payments will improve
transparency and accountability. The flow of

economy with accountable money can only
take place in a cashless economy. A shadow
economy does not get endurance here.
Faster economical circulation:
Online payments are too easy and fast for consumers. The circulation of liquid money will get
reduced.
Healthy economy:
A more optimized Union Budget can be produced. Collection oftaxes will get increased.
Prevention of anti-social activities:
Various forms of corruption like a bribe, embezzlement, extortion will be reduced as there will be no
black economy in parallel. The generation of counterfeit currency will be prevented. Hence, funds
for terrorism will get decreased. Besides, theft, burglary, ransom, blackmailing will become almost
impossible to pursue under this system.
Reduced Tax Evasion:
Every country faces the crisis oftax evasion that eventually generates black money, a detrimental
impact on the economy. Every corporate sector, medium, small-scale business evade tax. But with
the implementation of a cashless economy, the problem could significantly be reduced. According to
the report by the State of Tax Justice, In India, around $10.3 billion, or 0.41 per cent ofthe $3 trillion
GDP, is lost in taxes every year to global tax abuse.
Eco-friendly economy:
There will be no printing cost for paper notes and metal coins. Hence, the environment will not get
harmed by cutting trees.
30
Hygienic and touch-free
payment system:
All payments and financial

transactions will become touch-free.
The cashless transaction has gained
its significance amidst the deadly
Covid- 19 pandemic. Hence, cashless
transactions take care ofhealth and hygiene.
 DISADVANTAGES
Illiteracy
Illiterate poor people may find it a very hard job to do as many ofthem have no functional bank
accounts or the knowledge ofusing digital platforms for a monetary transaction or the financial
ability to buy a smartphone. If the cashless transaction becomes mandatory, it can generate economic
inequality due to the clash between the cash and the cashless economy.
Increased Tax Rate
Various surcharges and taxes are carried out on online transactions.
Cyber Crime
Increasing rate of cyber frauds like hacking, fake mobile applications, fake messages is a serious
issue in this perspective. National Cyber Crime Reporting Portal which operates under the Ministry
of Home Affairs, stated that over 2.9 lakh cybersecurity incidents related to digital banking were
reported in 2020.
Lack of Infrastructure
Poor internet facility in remote villages in India is still an obstacle to digital fund transfer.
Physical cash
The basic need for cash will remain unaltered for long years to come in countries like India.
31
Technological failures
Digital economy is completely technology-dependent. Ifthere is any internet or intra-net
breakdown, there must be a sudden hit to the payment network. Therefore, consumers could face
a huge hindrance, especially sectors like health, corporate business, railway, flight ticket booking
system could be affected to a great extent.
Privacy
Privacy is a factor. The information ofbiometric data ofAadhaar along with the bank account details
should be kept secured. This set of data will give the government enormous power to surveil its
people. Any kind ofpotential misuse of this information will deny the people their fundamental
rights and would therefore be catastrophic. As it is to be noted that India has also not yet enacted
specific legislation on data protection.
WAYS FORWARD
Cashless Economy cannot be achieved

anytime soon in India. As every coin has
two sides, the concept of a cashless
economy also represents two sides. The

digital transaction makes the system
transparent as well as it is impossible to
implement in rural India. People lack digital literacy and awareness and thus becoming the victims of
cyber fraud. Here are some steps that could betaken to balance the situation and to make the
transition into a cashless economy smoother.
 The transaction ofmore than 3 lakh must be through electronic mode.

 Cash holding more than 15 lakh and above should be reviewed.
 Incentives encouraging electronic transactions.
 It should be mandatory for the seller to deduct tax at 1% wherein cash payments exceed 2
lakhs.
 Quoting ofPAN should be made mandatory for all sale and purchase of goods and services
above Rs 2 lakh.
 Digital literacy awareness campaign should expand their outreach into remote villages.
32
CHAPTER 2: RESEARCH METHODOLOGY
2.1 OBJECTIVES OF THE STUDY
1. To understand and know about the History ofthe Cashless Transaction.

2. To know the various methods and instruments used in Cashless Transactions.
3. To assess the Challenges & Opportunities in implementation of Cashless Economy.
4. To know about the Government Initiatives & Cyber Security of a Cashless Economy.
5. To understand how Pre & Post Pandemic situation affects the Cashless Transactions in the Economy.
6. To understand the Advantages and Disadvantages of Cashless Transaction in the Economy.
2.2 SCOPE OF THE STUDY
To Understand and Study the Prospects of Cashless Economy in India.

Along with History, Types & Uses, Features, Types ofPayments in Cashless Transactions,
Challenges & Opportunities, Government Initiatives, Pre - Post Pandemic Situation, Advantages &
Disadvantages, Cyber Crime & Cyber Security of Cashless Economy.
2.3 LIMITATIONS OF THE STUDY
1. limitation on lack oftime

2. Sample Size / Sample Bias
3. Lack ofprevious studies in research area
4. Formulation ofresearch aims and objectives
5. Implementation of data collection method.
6. Scope ofDiscussions.
2.4 SAMPLE SIZE
Using the sampling technique, a sample size of 150 is taken into consideration.
2.5 DATA COLLECTION
The data is collected using questionnaires through Google Form.

The questions include how much part ofpeople spent or wish to spend through digital payments.
Also, to create awareness about cyber-crime and cyber security in digital payments
33
CHAPTER 3: REVIEW OF LITERATURE
Review of literature paves way for a clear understanding ofthe areas ofresearch already undertaken
and throws a light on the potential areas which are yet to be covered. Keeping this view in mind, an
attempt has been made to make a brief survey ofthe work undertaken on the field of cashless
economy. This review of some ofthe important studies is presented below.
Garg and Panchal (2016) founded that many people actually agree with the government on the
usefulness of Cashless Economy as it helps to fight against terrorism, corruption but one biggest
problem in the working of cashless economy in India is cybercrime and illegal access to primary
data. Therefore
it’s important to strengthen internet security from protection against online fraud. For smooth
implementation of cash less system in India, the following measures are recommended Government
have to bring transparency & efficiency in e-payment system, licensing payment banks, promoting
mobile wallets & withdrawing service charge on cards & digital payments.
Sheetal Thomas & G. Krishnamurthi (2017) : Examined that there is enormous potential that rural
economy in India can become
a cashless economy. The rural population is ready to learn it, with one person receiving benefit soon
the rest ofthe village will
follow. Keeping the level consumption patterns and the recent trends into mind the government can
plan for implementation of
basic support system like, incentivizing the use of internet through free data and smartphones,
distribution of laptops to students
taking higher education in nearby towns. Another way is by creating awareness about digital
transactions and financial literacy
among rural people by partnering with different educational and NGO’s. It can make the cashless
rural economy a reality from
dream.
34
Dr. Anthonima K. Robin (2018): This study focus on cashless transaction is having a long-term
impact on the lives ofthe people.
As there are two sides of coin, there are positive and negative impact ofthe scenario generated after
demonetization. With the increasing usage of cashless means people are tend to feel save as they are
free from carrying a wallet full ofphysical notes along with us, which is not at all safe in a world full
of anti-socials activities. People rather prefer to use mobile as the most effective
method ofpayment. Mobile have started serving as an important instrument for all kinds of
transactions such as bill payments, fees
payments, funds transfer, recharge, etc. In further to this, some other crimes such as burglary,
extortion, bank robbery, etc. are also
declining. One ofthe most important motives to implement and motive cashless transaction is to take
control on the illegal transactions and all activities related to terrorism.
35
Chapter 4 - DATA ANALYSIS, INTERPRETATION & PRESENTATION
AGE NO. OF RESPONDENTS PERCENTAGE %

18 or Younger 25 16.7%
19 - 24 94 62.7%
25 - 34 11 7.3%
35 - 44 11 7.3%
45 - 54 9 6%
55 - 64 0 0
65 or Older 0 0
TOTAL 150 100%
Analysis & Interpretation:
There are 150 respondents from which 16.7% respondents belong to 18 or younger years age.
Group i.e., 25 respondents belong to 18 or younger years age group.
There are 62.7 % respondents between 19 - 24 age group i.e., 94 respondents are between 19 - 24 age
group.
In the age group of25 - 34 there are 7.3% respondents i.e., 11 respondents.
There were 11 respondents forage group 35 - 44 i.e., 7.3% respondents are between 35 - 44 age
group.
There are 6% respondents that are 45 - 54 age group i.e., 9 respondents.

Lastly there were no respondents from 55 - 64 & 65 or older age groups.
From the above study we conclude the age group of 19 - 24 years has the highest respondents.
36
GENDER NO. OF RESPONDENTS PERCENTAGE %
MALE 79 52.7%
FEMALE 71 47.3%
PREFER NOT TO SAY 0 0
TOTAL 150 100
The above diagram shows that 52.7% ofrespondents were male i.e., there was 79 males out
of 150 respondents.
The above diagram shows that 47.3% ofrespondents were female i.e., there was 71 females
out of 150 respondents.
The above diagram shows that 0% ofrespondents were prefer not to say group.
37
PROFESSION NO. OF RESPONDENTS PERCENTAGE %
Student 93 62%
Employed full time 29 19.3%
Employed part time 4 2.7%
Self employed 17 11.3%
Unemployed 2 1.3%
Retired 0 0
Teacher 2 1.3%
Businessman 2 1.4%
Housewife 1 0.7%
Total 150 100
Analysis & interpretation:
Out of 150 respondents 62% respondents are Students i.e., 93 respondents are students.
There are 19.3% respondents who are employed full time i.e., 29 respondents are employed full time.
There are 2.7% respondents who are employed part time i.e., 4 respondents are employed part time.
In self-employed category there are 11.3% respondents i.e., 17 respondents.
In unemployed category there are 1.3% respondents i.e., 2 respondents.
No respondents were there in Retired category.
There were 1.3% respondents that are Teacher i.e., 2 respondents.
There were 2 respondents who is a businessman i.e., 1.4% respondents are belonging to the
businessman category
And 1 respondent who is a housewife i.e., 0.7% respondents are housewife.

From the above study we conclude that the student’s category has the highest respondents.
38
MONTHLY INCOME NO. OF RESPONDENTS PERCENTAGE %
Less than or Equal to Rs. 5000 71 47.3%
Rs. 5000 - Rs.10000 21 14%
Rs.10000 - Rs. 20000 28 18.7%
Rs.20000 - Rs.30000 13 8.7%
Rs.30000 - Above 17 11.3%
Total 150 100
Out of 150 respondents 47.3% respondents have monthly income less than or equal to Rs.5000
i.e., 71 respondents have monthly income less than or equal to Rs.5000.
There are 14% respondents who have monthly income between Rs.5000 - Rs. 10000 i.e., 21
respondents have monthly income between Rs.5000 - Rs.10000.
In Rs.10000 - Rs. 20000 category there are 18.7% respondents i.e., 28 respondents.
There are 13 respondents from Rs.20000 - Rs.30000 monthly income category i.e., 8.7%
respondents are belonging tothe Rs.20000 - Rs.30000 monthly income category.
11.3% respondents have monthly income above Rs. 30000 i.e., 17 respondents have monthly
income above Rs. 30000.
From the above study we conclude that 47.3% ofrespondents have monthly income less than or
equal to Rs. 5000.
39
MAXIMUM MONTHLY SPENDING NO OF PERCENTAGE %
RESPONDENTS
FIXED HOUSEHOLD EXPENSES 90 60%
HOUSEHOLD GROCERIES 73 48.7%
SUBSCRIPTIONS, MEMBERSHIPS, RECHARGES 46 30.7%
INVESTMENTS & SAVINGS 33 22%
MONTHLY INSTALLMENTS & EMI'S 14 9.3%
TRAVEL EXPENSES 59 39.3%
MEDICAL EXPENSES 36 24%

PERSONAL EXPENSES 37 24.7%
OTHERS 1 0.7%
40
Out of 150 respondents only 90 respondents i.e., 60% ofthe respondents have fixed household
expenses as a maximum monthly spending
Whereas 73 respondents i.e . , 48 . 7 % ofthe respondents have household groceries as a maximus

monthly spending
46 respondents i.e., 30.7% ofthe respondents have subscriptions, memberships, recharges as a

maximum monthly spending.
33 respondents i.e. , 22% ofthe respondents have investments & savings as a maximum monthly
spending.
14 respondents i.e., 9.3% ofthe respondents have monthly instalments & Emi’s as a maximum
monthly spending.
For travel expenses there were 59 respondents i.e., 39.3% ofthe respondents as a maximum
monthly spending in travel expenses.
For medical expenses there were 3 6 respondents i. e . , 2 4 % ofthe respondents as a maximum

monthly spending in medical expenses.
For personal expenses there were 37 respondents i.e. , 24. 7% ofthe respondents as a maximum
monthly spending in personal expenses.
Only 1 respondent i.e., 0.7% ofthe respondents have other expenses as a maximum monthly
spending.
41
% OF MONTHLY INCOME SPEND ON THE NO OF PERCENTAGE %
ABOVE EXPENSES RESPONDENTS
10% - 20% 27 18%
20% - 30% 30 20%
30% - 40% 32 21.3%
40% - 50% 24 16%
MORE THAN 50% 37 24.7%
37 out of 150 respondents i.e., 24.7% respondents have more than 50% oftheir monthly income
spend on the above expenses.
32 ofrespondents i.e., 21.3% respondents have 30% - 40% oftheir monthly income spend on the
above expenses.
20% ofrespondents i.e., 30 respondents have 20% - 30% oftheir monthly income spend on the
above expenses.
27 ofrespondents i.e., 18% respondents have 10% - 20% oftheir monthly income spend on the
above expenses.
16% ofrespondents i.e., 24 respondents have 40% - 50% oftheir monthly income spend on the
above expenses.
From this we can infer those 37 respondents have more than 50% oftheir monthly income spend on
the above expenses.
42
HOW DO YOU MAKE PAYMENTS FOR THE NO OF RESPONDENTS PERCENTAGE%
ABOVE EXPENSES?
CASH 96 64%
CREDIT / DEBIT CARDS 47 31.3%

UPI [PAYTM, GOOGLE PAY, ETC] 91 60.7%
MOBILE WALLETS 11 7.3%
NET BANKINGS [RTGS, NEFT, IMPS] 24 16%
Out of 150 respondents 96 respondents i.e., 64% ofthe respondents use CASH to make payments for
the above-mentioned expenses.
There are 91 respondents i.e., 60.7% ofthe respondents use UPI [PAYTM, GOOGLE PAY, ETC] to
make payments for the above-mentioned expenses.
Whereas 31. 3 % ofthe respondents i.e. , 47 respondents use CREDIT / DEBIT CARDS to make
payments for the above-mentioned expenses.
While 24 respondents i.e., 16% ofthe respondents useNET BANKINGS [RTGS, NEFT, IMPS] to
make payments for the above-mentioned expenses.
Also 11 respondents i.e . , 7. 3 % ofthe respondents use MOBILE WALLETS to make payments for
the above-mentioned expenses.
From the above study we conclude that 96 respondents use CASH to make payments.
43
WHY DO YOU PREFER THE ABOVE NO OF RESPONDENTS PERCENTAGE %
METHOD OF PAYMENT?
Convenience 105 70%
Discounts / Cashback Rewards 58 38.7%

Easy Tracking of Spends 51 34%
Shortage of Currency Notes 13 8.7%
Analysis & interpretation:
10 5 respondents i.e . , 70 % ofthe respondents use the above method ofpayments for convenience.
58 respondents i.e . , 38 . 7 % ofthe respondents use the above method ofpayments for Discounts /
Cashback Rewards.
There are 34% ofthe respondents i.e., 51 respondents use the above method ofpayments for Easy
Tracking of Spends.
1 3 respondents i. e . , 8 . 7 % ofthe respondents use the above method ofpayments for Shortage of
Currency Notes.
44
FOR HIGH-VALUE TRANSACTIONS, WHAT IS NO OF RESPONDENTS PERCENTAGE%
YOUR PREFERRED MODE OF PAYMENT?
CASH 58 38.7%
CREDIT / DEBIT CARDS 50 33.3%
UPI [PAYTM, GOOGLE PAY, ETC] 7 4.7%

MOBILE WALLETS 62 41.3%
NET BANKINGS [RTGS, NEFT, IMPS] 57 38%
There are 62 respondents i.e . , 41 . 3 % ofthe respondents prefer MOBILE WALLETS for high value
transactions.
58 respondents i.e., 38.7% ofthe respondents prefer CASH for high value transactions.
57 respondents i.e., 38% ofthe respondents prefer NET BANKINGS [RTGS, NEFT, IMPS] for high
value transactions.
50 respondents i.e., 33.3% ofthe respondents prefer CREDIT / DEBIT CARDS for high value
transactions.
7 respondents i.e., 4.7% ofthe respondents prefer UPI [PAYTM, GOOGLE PAY, ETC] for high
value transactions.
45
WHAT IS YOUR BIGGEST CONCERN / NO OF RESPONDENTS PERCENTAGE%
PROBLEM AROUND CASHLESS PAYMENTS?
Security [risk of identity theft] 86 57.3%

Poor Internet Connectivity 74 49.3%
Merchant Acceptance 34 22.7%
Costs 17 11.3%
Lack of Technology 38 25.3%
Big amount Withdrawals 33 22%
According to 86 respondents i.e., 57.3% ofthe respondents the biggest problem of cashless payment
is Security [risk of identity theft].
The biggest problem of cashless payments for 7 4 respondents i. e . , 4 9 . 3 % ofthe respondents is Poor
Internet Connectivity.
Merchant acceptance is also the problem of cashless payments for 34 respondents i.e . , 22 . 7 % ofthe
respondents.
11.3% ofthe respondents i.e., 17 respondents face problems in Costs for cashless payments.
Whereas 38 respondents i.e . , 25 . 3 % ofthe respondent’ s problems around cashless payments is Lack
of Technology.
33 respondents i.e., 22% ofthe respondents biggest concern around cashless payments is big amount
withdrawals .
46
DO YOU THINK CASHLESS ECONOMY WILL NO OF PERCENTAGE
REDUCE THE RISK OF FAKE CURRENCY? RESPONDENTS %
STRONGLY DISAGREE 13 8.7%
DISAGREE 18 12%
NEUTRAL 52 34.7%
AGREE 47 31.3%
STRONGLY AGREE 20 13.3%
TOTAL 150 100
According to 13 respondents i.e., 8.7% ofthe respondents Strongly Disagree on cashless

economy will reduce the risk of fake currency.
According to 18 respondents i.e., 12% ofthe respondents Disagree on cashless economy will
reduce the risk of fake currency.
While 52 respondents i.e., 34.7% ofthe respondents are neutral on cashless economy will
reduce the risk of fake currency.
According to the survey, 47 respondents i.e., 31.3% ofthe respondents Agree cashless
economy will reduce the risk of fake currency.
According to the survey, 20 respondents i.e., 13.3% ofthe respondents Strongly Agree
cashless economy will reduce the risk of fake currency.
From the above survey we conclude that 52 respondents are Neutral on cashless economy
will reduce the risk of fake currency.
47
DO YOU THINK LITERACY IS REQUIRED FOR NO OF PERCENTAGE
CASHLESS ECONOMY? RESPONDENTS %
DISAGREE 13 8.7%
NEUTRAL 41 27.3%
AGREE 55 36.7%
STRONGLY AGREE 33 22%
TOTAL 150 100
8 respondents i.e., 5.3% ofthe respondents strongly disagree on literacy is required for
cashless economy.
13 respondents i.e., 8.7% ofthe respondents Disagree on literacy is required for cashless
economy.
According to 41 respondents i.e., 27.3% are Neutral on literacy is required for cashless
economy.
According to the survey 36.7% ofthe respondents i.e., 55 respondents Agree on literacy is
required for cashless economy.
According to the survey 22% ofthe respondents i.e. , 33 respondents Strongly Agree on
literacy is required for cashless economy.
From the above survey we conclude that 55 respondents Agree on According to the survey
36.7% ofthe respondents i.e., 55 respondents Agree literacy is required for cashless
economy.
48
DO YOU THINK GOVERNMENT SHOULD TAKE NO OF PERCENTAGE
STEPS TO PROMOTE OR IMPROVE CASHLESS RESPONDENTS %
TRANSACTIONS?

DISAGREE 4 2.7%
NEUTRAL 31 20.7%
AGREE 49 32.7%
TOTAL 150 100
According to the survey 13 respondents i.e., 8.7% ofthe respondents Strongly Disagree for
government should take steps to improve cashless transactions.
4 respondents i.e . , 2. 7 % ofthe respondents Disagree for government should take steps to
improve cashless transactions.
While 31 respondents i.e . , 20 . 7 % ofthe respondents have Neutral thinking for government
should take steps to improve cashless transactions.
32.7% ofthe respondents i.e., 49 respondents are Agree for government should take steps to
improve cashless transactions.
Out of 150 respondents only 53 respondents i.e., 35.3% ofthe respondents are Strongly
Agree for government should take steps to improve cashless transactions.
From the above survey we conclude that 53 respondents Strongly Agree for government
should take steps to improve cashless transactions.
49
IN WHICH MODE OF PAYMENTS, DO YOU NO OF PERCENTAGE %
THINK MOST OF THE FRAUDS TAKE PLACE? RESPONDENTS
CASH 21 14%
CASHLESS TRANSACTIONS 49 32.7%
BOTH 80 53.3%
TOTAL 150 100%
According to 53 . 3 % ofthe respondents i.e . , 80 respondents think most ofthe frauds take place in
both mode ofpayments i.e., Cash & Cashless Transactions.
While 49 respondents i.e . , 32 . 7 % ofthe respondents think most ofthe frauds take place in
Cashless transactions mode ofpayments.
Whereas only 2 1 respondents i. e . , 1 4 % ofthe respondents think most ofthe frauds take place in
Cash mode ofpayments.
From the above study we conclude that most ofthe frauds take place in both mode ofpayments
i.e., Cash & Cashless Transactions according to 80 respondents.
50
REASON FOR FRAUDS? NO OF RESPONDENTS PERCENTAGE %
Lack ofAwareness 93 62%
Lack of Strict Actions against Scamster 77 51.3%

Lack of Literacy 59 39.3%
Lack of Technology Knowledge 77 51.3%
Lack ofProper Security System 69 46%
According to 9 3 respondents i. e . , 6 2 % ofthe respondents think the main reason for frauds is lack
of awareness.
Whereas 77 respondents i.e . , 51 . 3 % ofthe respondents think the reason for frauds are Lack of
Strict Actions against Scamster & Lack of Technology Knowledge.
4 6 % ofthe respondents i. e . , 6 9 respondents think the reason for frauds is Lack ofProper Security
System.
Also 59 respondents i.e. , 39. 3 % ofthe respondents think the reason for the frauds is Lack of
Literacy.
51
DO YOU THINK INDIA SHOULD BECOME A 100 % NO OF PERCENTAGE
CASHLESS ECONOMY? RESPONDENTS %
DISAGREE 33 22%
NEUTRAL 65 43.3%
AGREE 22 14.7%
TOTAL 150 100%
65 respondents i.e . , 43 . 3 % ofthe respondents have Neutral thinking on India should become a
100% cashless economy.
22% ofthe respondents i.e., 33 respondents Disagree on India should become a 100% cashless
economy.
Whereas 22 respondents i.e., 14.7% ofthe respondents Agree on India should become a 100%
cashless economy.
According to the survey 16 respondents i.e., 10.7% ofthe respondents Strongly Agree on India
should become a 100% cashless economy
According to the survey 14 respondents i.e., 9.3% ofthe respondents Strongly Disagree on India
should become a 100% cashless economy
From the above survey we conclude that 65 respondents are Neutral on India should become
100% cashless economy.
52
WHOM DOES CASHLESS MODE OF NO OF RESPONDENTS PERCENTAGE %
PAYMENT BENEFIT MORE?
GOVERNMENT 62 41.3%
BUSINESS 64 42.7%
PUBLIC 71 47.3%
NON-PROFIT ORGANIZATION 12 8%
SERVICE SECTOR 25 16.7%
The cashless mode ofpayment benefits more to Public according to 71 respondents

i.e.,47.3% ofthe respondents.
The cashless mode ofpayment benefits more to Business according to 64 respondents i.e.,
42.7% ofthe respondents.
Whereas 62 respondents i.e . , 41 . 3 % ofthe respondents think Government get more benefits
in cashless mode ofpayment.
Also 25 respondents i.e., 16.7% ofthe respondents think Service Sector get more benefits in
cashless mode ofpayment.
There are only 8 % ofthe respondents i. e . , 1 2 respondents think cashless modes ofpayments
benefits moreto Non-Profit Organization.
53
DO YOU KNOW WHAT IS NO OF RESPONDENTS PERCENTAGE %
CRYPTOCURRENCY?
YES 107 71.3%
NO 23 15.3%
MAYBE 20 13.3%
TOTAL 150 100%
Out of 150 respondents only 107 respondents i.e., 71.3% ofthe respondents are aware of
cryptocurrency.
Whereas 15.3% ofthe respondents i.e., 23 respondents are not aware ofcryptocurrency.
While 20 respondents i.e., 13.3% respondents seem doubtful about cryptocurrency.
From the above study we conclude those 107 respondents i.e., 71.3% ofthe respondents are
aware about cryptocurrency.
54
METHOD OF PAYMENT NO OF RESPONDENTS PERCENTAGE %
AFTER COVID- 19?
CASH 15 10%
CASHLESS TRANSACTIONS 54 36%
BOTH 81 54%
TOTAL 150 100%
Out of 15 0 respondents 81 respondents i.e . , 54 % ofthe respondents will prefer both method of
payment i.e., Cash and Cashless Transactions after covid 19.
Whereas 36% ofthe respondents i.e., 54 respondents will prefer cashless transactions method for
payment after covid 19.
While 15 respondents i.e., 10% ofthe respondents will prefer only cash for payment after covid 19.
55
WOULD YOU STILL USE CASHLESS SERVICES NO OF PERCENTAGE %
PAYMENT METHOD, IF THEY CHARGE YOU RESPONDENTS
FOR THE SERVICES IN FUTURE?
YES 32 21.3%
NO 46 30.7%
MAYBE 72 48%
TOTAL 150 100%
Out of 150 respondents only 48% respondents i.e., 72 respondents will still use cashless service
payment method, even ifthey charge for the services in future.
Whereas 46 ofrespondents i.e . , 30 . 7 % respondents will not use cashless service payment method,
even ifthey charge for the services in future.
While 32 ofthe respondents i.e., 21.3% respondents seem doubtful to use cashless service
payment method, ifthey charge for the services in future.
From this we can infer those 72 respondents seem doubtful to use cashless service payment
method, ifthey charge for the services in future.
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CHAPTER 5: CYBER CRIMES & CYBER SECURITY IN CASHLESS ECONOMY.
 CYBER CRIMES
After the announcement of demonetization, a majority ofpeople from the urban area are using online
methods for payments through e-wallets and plastic money. Most ofthe payments and transactions are
done via online payments through mobile phones, which can lead to mobile frauds. The number of
people using the internet is increasing day by day. This might lead to increase or boost in more cyber-
crimes.
A Cashless economy will definitely lead to more dangerous cyber-crimes. Though the Indian
government has asked all the banks to waive off the debit card charges, this means that no transaction
fees will be cut off ifthe person uses his or her debit card as a method ofpayment. But still, the experts
are saying that cyber crimes ’ danger is yet to stay.
A lot ofpeople do not knowhow to use the internet methods for online transactions. These people can be
said to be the major targets for most ofthe cyber-crimes. As they have difficulties in understanding how
to use the internet method and also, they are not aware ofthe consequences ofusing online methods
without protection.
 FRAUDS RELATED TO CYBER CRIMES
 Crime Against a Person
A recent survey has brought to light that the major cyber-crimes are related to the credit
cards ’ and debit cards ’ fraud. It is followed by a lot of complaints related to cyber-bullying,
like-morphed photos, stalking, threatening to lead images online. We also have been cheated
cell-phones, have got our email id’s hacked, despite all this, cyber crimes ’ victims continue to
work in this risky business.
 Crimes against property Licensed Innovation Crimes
Intellectual property comprises of a heap ofrights. Any unlawful demonstration by

which the proprietor is denied totally or somewhat ofhis rights is an offense. The
normal type of IPR infringement might be said to be programming robbery,
encroachment of copyright, trademark, licenses, outlines and administration check
infringement, burglary of PC source code and so on.
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 Cyber-Squatting
It implies where two people guarantee for a similar Domain Name either by asserting that
they had enlisted the name first, by right ofutilizing it before the other, or by utilizing
something like that already. For instance, two comparative names i.e., www.yahoo.com and
www.yaahoo.com.
 Digital Vandalism
Vandalism implies intentionally annihilating or harming property of another. Along these

lines, digital vandalism implies crushing or harming the information when a system
administration is halted or disturbed. It might incorporate inside its domain any sort of
physical mischief done to the PC of any individual. These demonstrations may appear as the
burglary of a PC, some part of a PC or a fringe connected to the PC.
 Hacking Computer System
Hacktivism assaults those included Famous Twitter, blogging stage by unapproved get to
control on the PC. Because ofthe hacking action, there will be the loss ofthe information and
also the PC. Likewise, inquire about particularly demonstrates that those assaults were not
primarily planned for monetary benefits as well and to lessen the notoriety of specific
individual or organization. The recent example is the hacking ofRahul Gandhi twitter
account.
 Transmitting Virus
Viruses are the projects that join themselves to a PC or a document and afterward course
themselves to different records and to different PCs on a system. They rule influence the
information on a PC- either by changing or erasing it.
 Digital Trespass
It intends to get into somebody’s PC without the correct approval ofthe proprietor and does not
aggravate, adjust, abuse, or harm information or framework by utilizing remote web association.
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 Web Time Thefts
Basically, Internet time robbery goes under hacking. It is the utilization by an unapproved
individual ofthe Internet hours paid for by someone else. The individual who accesses
another person’s ISP client ID and secret key, either by hacking or by accessing it by illicit
means, utilizes it to get to the Internet without the other individual’s information. You can
recognize time robbery ifyour Internet time must be reviewed regularly notwithstanding,
occasional utilization.
 Crimes against Government
Digital Terrorism
Cyber fear-based oppression is a noteworthy smouldering issue in the local and additionally
worldwide concern. The normal types ofthese fear on the Internet are-
 By dispersed disavowal of administration assaults;
 Detest sites and detest messages;
 Assaults on computer systems, and soon …
Digital fear mongering exercisesjeopardize the integrity and uprightness ofthe country.
Digital Warfare
It is politically roused hacking which leads to damage and undercover work. It is a type of
data fighting in some cases, seen as similar to traditional fighting.
Ownership of Unauthorized Information
It is anything but difficult to get to any data by the fear ofterrorists with the help of internet
to have the data for political, religious, social, ideological goals.
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 CYBER SECURITY
To improve customer confidence in digital payments, it is ofutmost importance to keep a control on
the number of frauds that occur, and to ensure that customers are not impacted. Digital frauds and
crimes are expected to be a persistent topic in future payment, especially as the global pandemic is
considered in the equation. Balancing customer experience with cyber security is an ongoing
challenge in the financial industry, and innovation in fraud prevention is a major focus that is
expected to continue in the coming years. Identity imposters are evolving, and criminals are not only
using stolen identification but also creating new, digital-only identities by knitting together real and
fictitious information. These ‘synthetic identities ’ exist only in the digital matrix. Existing fraud
detection models are designed to prevent transaction fraud and
cannot address these threats. Banks and payment companies must pushto out-innovate fraudsters.
Some are using new technologies such as geolocation, acoustic analysis and data analytics-based
identification of
abnormal events for digital applications and online, mobile and call centre servicing channels. In
light of such growing fraudulent deceits, Artificial intelligence is expected to become essential for
successful payments fraud prevention strategies. As India’s dependence on digital payment systems
deepens, particularly through the UPI and mobile wallets, these vulnerabilities are expanding the
threat landscape
for cyber-attacks, such as spoofing of identities, session hijacking, malware injection, ‘Distributed
Denial of
Service’ and ‘Man in the Middle’ attacks.
Developing a ‘cyber-secure nation ’ for businesses and individuals is a key component of India's
national cybersecurity strategy.
A SKOCH event featured Indian National Cybersecurity Coordinator Rajesh Pant, who claimed that
when India's cybersecurity strategy policy is released in 2020, it will be able to secure the entire
nation. In plenty ofways, this will assist the government in its vision for a $5 trillion economy.
Addingto that, he explained how the most essential requirement for securing the internet is for
government officials to coordinate effectively to protect the entire country from cyber threats. A
cybersecurity framework must take into account the proper formation of critical infrastructure and
the establishment of seamless public-private partnerships.
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Creating such a rigorous framework will require a significant budget. “Considering our nation's size
and scale, we need approximately ₹ 25, 00 0 crores for cyber security Indian government projects. The
university curriculum must also emphasize cybersecurity as a high-decibel awareness subject”, said
Ajeet Bajpai, Director-General ofthe National Critical Infrastructure Protection Centre.
There has never been a more crucial time to develop a secure framework for all government
organizations, with an increasing number ofbreaches affecting the country and government websites
being hacked.
As part ofthis article, we will outline the progress India has made regarding its cybersecurity
strategy in 2020 and some ofthe Indian government initiatives on cybersecurity taken.
Indian government initiatives on cybersecurity
CERT-In
India's national agency for cybersecurity, The Indian Computer Emergency Response Team (CERT-
In), has led to a reduction in cyber-attacks on government networks due to its advancements in
tackling the nation's cybersecurity. By teaching cybersecurity awareness and anti-phishing to
government officials across India, government employees are better prepared to fight cybercrime.
The CERT-In Group also informs the public about the latest cyber vulnerabilities and
countermeasures to combat them, in addition to spreading awareness ofthe dangers posed by
phishing attacks.
Cyber Surakshit Bharat
Cyber Surakshit Bharat is an initiative from the Ministry ofElectronics and Information Technology
(MeitY) that pointed at creating a robust cybersecurity ecosystem in India. This aligns with the
government's vision for a ‘Digital India ’. The National E-Government Division (NeGD) sponsored
this program. As aresult ofthe Indian Government Initiatives on Cybersecurity, the governance
system has rapidly transformed with technological advancements, the necessity of good governance
has become more important. The initiative would encourage CISOs and frontline IT staff across all
government departments to be aware of cybercrime and build their abilities to protect themselves.
This first public-private partnership also includes a series ofworkshops to help officials become
knowledgeable about cybersecurity, and equip them with toolkits for fighting cyber-threats.
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National Critical Information Infrastructure Protection Centre
As apart of Indian Government Initiatives on Cybersecurity, to safeguard critical information
relevant to national security, economic development, and public health, India has established the
National Critical Information Infrastructure Protection Centre. Information Technology (IT) Act,
2000, Section 70A, amended this provision. Cybersecurity exercises are conducted by this
organization to make sure the Government and critical sectors are prepared in terms of cybersecurity.
There are roughly four ‘Critical Sectors ’ identified by NCIIPC:
 Energy & Power
 Finance, Insurance, and Banking
 Telecommunications
 Transportation
 Administration
 Public and Strategic Enterprises
Cyber Swachhta Kendra
New Delhi hosted the 12 th India Security Summit on the 28 th ofAugust, 2019 under the
theme “Towards New National Cyber Security Strategy”. Several topics were discussed at
the conference, such as protecting critical national infrastructure and addressing emerging
cyber threats. During the panel, it was also noted that cybersecurity is a challenging area in
the digital world, so new tools and technologies should be developed more quickly.
The MHA launched this I4C Indian Cyber Crime Coordination Centre program to combat
cybercrime in the country, through a coordinated and efficient method, from 2018 to 2020.
Cyber Swachhta Kendra (Botnet Cleaning and Malware Analysis Centre) is an installation
under the Ministry of Electronics and Information Technology (MeitY).
It aims at:
1. To create secure cyberspace for Indian users by detecting botnet infections and enabling
end-users to clean their systems and secure their systems thereafter to prevent further
infections.
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2. To create a more secure cyber ecosystem in the country by the National Cyber Security
Policy.
3. Section 70 B ofthe Information Technology Act, 20 0 0 authorizes CERT- Into operate the
centre.
The Indian government cyber security department puts efforts to prevent cybercrime and
expedite investigations, the central government has issued cyber-related alerts/advisories,
improved cyber forensics facilities, and increased capacity building among law enforcement,
judges, and prosecutors.
National Cyber Security Strategy 2020
A National Cyber Security Strategy 2020 is still under development at the Indian government
cyber security department National Security Council Secretariat by the Office ofthe National
Cyber Security Coordinator. Information security refers to preventing attacks, damage,
misuse, and economic espionage in cyberspace. A three-tiered organization, the National

Security Council (NSC) of India oversees issues related to politics, economy, energy, and
security.
The aim is to increase the quality of cybersecurity audits will help improve cyber awareness.
Cyber auditors will hold organizations to a higher standard of security than currently required
by law.
It is about the idea that cyberattacks can occur regularly which can be reinforced through
table-top crises management exercises. It also centers on cyber preparedness which should be
indexed and performance should be monitored. This initiative states that cybersecurity
deserves its budget, and other departments with the necessary domain knowledge should
synergize their roles and functions.
Appointing CIOs
Globalization has made the adoption of stringent measures increasingly essential as a result
of rapid digitalization. The smallest crack in the governmental system could devastate the
government, bringing it to a halt.
Each government organization should therefore beheaded by a skilled information security

leader - otherwise known as a Chief Information Security Officer (CISO) - who can quickly
identify and document any new security requirements derived from technical innovation.
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Indian authorities recently released a guide highlighting best practices for securing
applications, infrastructure, and compliance, aimed at the CISOs of government
organizations.
Plan of Action for Crisis Management
All government departments and the above-mentioned critical sectors are also forming and
implementing crisis management plans. A breach incident can cause considerable damage to
businesses and employees. These Indian Government Initiatives on Cybersecurity are
designed to setup a strategy for preparing employees and leaders for such a scenario. The
federal government also ensures that critical functions will not be disrupted by cyber threats
in every critical area. By properly implementing strategies behind the desk, organizations will
have the ability to deal with cybersecurity crises more effectively, as well as correctly
identify responsibilities and accountability at the individual level.
Website Audit
The Government of India is planning to conduct an audit of all its online applications and
websites amid the increasing number ofmalicious attacks such as government website
hacking, email phishing, and data theft. The government has appointed approximately 90
security auditing organizations to audit the best practices of information security as part of
this initiative.
Drills & Training
As part ofthe assessment ofthe cybersecurity posture of organizations, the government

organization has started to organize and conduct cybersecurity mock drills. CERT-In has
already conducted 44 simulated drills ofthis type this year, according to MeitY. Furthermore,
around 265 organizations from several states and sectors have taken part in these exercises.
Financial, defence, power, and telecommunications are the major industries that are likely to
benefit from such initiatives. To prepare system administrators and CISOs for cyber-attacks,
regular workshops and training programs have been held. Since October 20 1 9 , about 19
training sessions have already taken place with 515 participants.
Protection Against Malware
Cyber Swachhta Kendra is a cleaning robot that has been designed to detect malware and
analyse its source. Moreover, free tools are provided for removing malicious software as
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well. A national cyber coordination centre (NCCC) has been setup in the government's
Cyber Swachhta initiative to assist with increased situational awareness about existing and
potential cyber threats.
Indian Legislation on Cyber Security
IT Act of2000 came into effect in India on 09 June 2000. IT Act states in its preamble that the
purpose ofthe legislation is to provide legal recognition to electronic transactions. Despite the
preamble, the IT Act has a much broader scope. It specifies a wide range oftopics: data protection,
data security, cyber-crime, defamation on cyberspace, mandatory surveillance of communications.
Since 2011, there have been no amendments to the IT Act. Eventhough cyber frauds, data breaches,
and general cybersecurity concerns have increased significantly over the past ten years, no changes
have been made to the IT Act. MeitY announced in February 2020 that it would revise the IT Act to
include a more robust framework for cyber security. The government is attempting to speedup the
process of amending the IT Act in response to emerging technologies, the explosion of digital
business models, and an increase in cybercrimes.
 The Information Technology (Amendment) Act of 2008
A new amendment act was passed by Parliament in December 20 0 8 ( “ Amendment Act” ). In

this Amendment Act, it was prohibited to transmit offensive messages or any information
through a computer resource and communication system to cause discomfort, inconvenience,
etc. In the Shreya Singhal case, the Supreme Court of India overturned this provision.
The Amendment Act allowed both the central government and the state governments to issue
directions for intercepting or monitoring information under section 69 based on
recommendations from the standing committee on IT. Instead ofjust transmitting, this
provision now covers the transmission, generation, and storage of information intercepted.
Through the revised section, additional safeguards, such as the Information Technology
Rules, 2009 (“Interception Rules”), are also introduced for the issuance of such interception
orders.
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 National Cyber Security Policy of 2013
Formerly known as the Ministry of Communication and Information Technology, it notified a

National Cyber Security Policy ( “ NCSP” ) in July of20 1 3 . To achieve the objectives outlined in
the NCSP 2013, the Indian government implemented the following strategies/initiatives:
CII security measures are being undertaken by NCIIPC, the country's nodal agency.
Cybersecurity multilateralism development. One ofthe things that India and the US did in
2016 was coordinate best cyber security practices and exchange real-time information about
malicious cyberattacks.
Establishing the National Cyber Coordination Centre (“NCCC”) to gain a comprehensive

understanding of cyber security threats and to enable timely information sharing between
individual entities for preventative action.
 Personal Data Protection Bill
For Indian citizens, who are concerned about worldwide data breaches, the PDP Bill was approved
by the union government to protect them from global breaches, focusing on localized data. This bill
stipulates that all information critical to individuals must be stored and processed in India.
Individuals' sensitive personal data is required to be stored locally, however; certain conditions may
allow them to be processed abroad. As part ofthe bill, social media giants would beheld accountable
for offensive content spreading on their platforms and forced to resolve these issues.
 Surveillance Order Issued By MHA
As part ofthe Interception Rules, the MHA approved an order in December 2 0 1 8 allowing 1 0
security and intelligence agencies to intercept, monitor, and decrypt any data transmitted,
generated, or received over any computer resource.
The Puttaswamy case outlined how this order violates the fundamental right to privacy. The
Supreme Court criticized the order for violating this right. Government officials claimed the
order was aimed at achieving a legitimate state goal. Further, the government has advised that
the agencies must request permission from the competent authority ifthey want to intercept
any information.
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 The Bottom Line
The MHA noted an 86% increase in cybercrimes this year, ranging from phony Netflix offers to
fake versions ofthe PM Cares Fund payment interface. Several factors can further weaken the
current framework under the IT Act amid an increase in cybercrime, including the multiplicity of
agencies responsible for cyber security and the ambiguity in the legal framework for surveillance
and monitoring requests.
During the process of overhauling the IT Act, the government is in a unique position to create a
robust framework focusing on cyber security. We're looking forward to seeing how the
government approaches the issues now that a data protection regime and a national cyber security
strategy are in development
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CHAPTER 5 - CONCLUSION & SUGGESTION
CONCLUSION
Being cashless is an emerging trend prevailing in most modern economies in the world although that
does not necessarily mean that one would be without cash at all. But it is the extensive use of
computer technology in carrying out transactions in the financial system. The cashless policy is in
line with vision goal ofbeing one ofthe top economies. Despite the challenges, the cashless
economy is a veritable tool in subverting money laundering, tax evasion, inflation, poor balance of
payments and also increases efficiency and effectiveness in financial statement reporting. The
cashless economy has the capacity to heighten the level oftransparency and visibility oftransactions
in the financial system in an economy. India has adopted the International Financial Reporting
Standards (IFRS) and International Auditing Standards (IAS) and compliance to these Standards will
be more enhanced in a cashless economy. The burden or tension on auditors/audit work will be less;
even demand for external auditors in a “routine work” will be less. This is because there will be more
visibility in accounting information in such away that audit trail and minor verifications of
accounting data can be achieved without involving external auditors. Furthermore, cost minimization
is very strategic in cost management strategies for any product or transaction.
The government needs to take the necessary steps and make some policy considerations when they
are preparing for a cashless economy. The payment systems have to be protected from the cyber-
attacks which are the major threat for cashless transactions. Also, the government should be able to
serve the under banked as well. Everyone from the society should have access to an electronic
system that they can use for such transactions. Government should take measures to increase
liquidity into the system so that people face less inconvenience. Government should also try to
improve overall infrastructure so that more and more people can come into banking net and internet.
Society has also to play its part. They have to understand the importance of cashless economy and
appreciate measures taken by the government. As a conclusion, it can be said that going cashless
provides a lot more benefits thanjust convenience to people, businesses and the government in
particular.
68
SUGGESTIONS:
• The knowledge about operation of electronic devices plays an important role in practicing cashless
transactions; therefore, some little stepson extensive basis are required with regard to educating people
about the usage of online modes ofpayment.
• Any kind of service charge applicable on online transactions should be abolished; rather charges
should be imposed on cash deposits and withdrawals above a certain limit.
• People should be made aware ofthe ease of doing transactions over electronic media away from long
queues in banks.
• Availability of fast, safe and cheap internet facility must be ensured both to rural and urban population.
• Strict cyber laws must be implemented to give protection to the users of E-banking/online modes of
transactions.
69
BIBLOGRAPHY
• Preeti Garg, Manvi Panchal “ study on introduction of cashless economy in India 20 1 6 : Benefits &
challenges” IOSR Journal ofbusiness and management, volume 19, issue, 4 April2017, pp116- 120
• Dr. Anthonima K. Robin. et.al, India Moving towards Cashless Society. International Journal of
Engineering & Scientific Research (IJMRA Publications) Vol. 6 Issue 5 May 2018.
• Sheetal Thomas, et.al, Cashless Rural Economy – A Dream or Reality? Jharkhand Journal of
Development and Management Studies, XISS, Ranchi, Vol. 15, No.2, June 2017, PP. 7269-7281
• impacting-digital-payments-in-india.pdf
• Cashless Economy in India - Definition, Types and Advantages for UPSC Economy (byjus.com)
• Cashless Economy: Problem & Prospect - IJERT
• (PDF) A STUDY ON BENEFITS AND CHALLENGES OF DIGITAL (CASHLESS) INDIA. GINCY

CHARLES (researchgate.net)
• https:/ / www. bing. com/ search?q = Government+ Initiatives+ Towards+ Cybersecurity& FORM= HDRSC1&
ntref=1
• https://www.researchgate.net/publication/338596122_CASHLESS_ECONOMY-
LITERATURE_REVIEW_AND_RELEVANT_FACTS
• The History of Cashless Society [Infographic] - Total Processing
70
APPENDIX
I. WHAT IS YOUR MONTHLY INCOME?
o Less than or Equal to 5000

o 5000 - 10000
o 10000 - 20000
o 20000 - 30000
o 30000 - Above
II. WHICH IS YOUR MAXIMUM MONTHLY SPENDING [EXPENSES]?
o FIXED HOUSEHOLD EXPENSES [Rent, Electricity Bills, Water Bills, GAS, ETC]
o HOUSEHOLD GROCERIES [Monthly Rations, Shopping, ETC]
o SUBSCRIPTIONS, MEMBERSHIPS, RECHARGES [OTT, GYM, WIFI, NETLIX, MOBILES,

ETC]
o INVESTMENTS & SAVINGS [ Shares, Mutual Funds, Chit Funds [BC], Insurance Premium,
ETC]
o MONTHLY INSTALLMENTS & EMI'S [ HOME, ELECTRONICS ITEMS, ETC]

o TRAVEL EXPENSES
o MEDICAL EXPENSES
o PERSONAL EXPENSES [ Salon, Spa, Clubs, Cricket Tournaments, Turf, outing with friends,
shopping, Etc]
o OTHERS
III. HOW MUCH % OF YOUR MONTHLY INCOME DO YOU SPEND ON THE ABOVE
EXPENSES?
o 10% - 20%
o 20% - 30%
o 30% - 40%
o 40% - 50%
o MORE THAN 50%
71
IV. HOW DO YOU MAKE PAYMENTS FOR THE ABOVE EXPENSES?
o CASH
o CREDIT / DEBIT CARDS
o UPI [PAYTM, GOOGLE PAY, ETC]
o MOBILE WALLETS
o NET BANKINGS [RTGS, NEFT, IMPS]
o OTHERS
V. WHY DO YOU PREFER THE ABOVE METHOD OF PAYMENT?
o Convenience
o Discounts / Cashback Rewards
o Easy Tracking of Spends
o Shortage of Currency Notes
o Others
VI. FOR HIGH-VALUE TRANSACTIONS, WHAT IS YOUR PREFERRED MODE OF

PAYMENT?
o CASH
o CREDIT / DEBIT CARDS
o MOBILE WALLETS
o UPI [G-PAY, PAYTM, ETC]
o NET BANKING [RTGS, NEFT, IMPS]
VII. WHAT IS YOUR BIGGEST CONCERN / PROBLEMS AROUND CASHLESS

PAYMENTS?
o Security [risk of identity theft]

o Poor Internet Connectivity
o Merchant Acceptance
o Costs
o Lack of Technology
o Big Amount Withdrawals
72
VIII. DO YOU THINK CASHLESS ECONOMY WILL REDUCE THE RISK OF FAKE
CURRENCY?
o STRONGLY DISAGREE
o DISAGREE
o NEITHER
o AGREE
o STRONGLY AGREES
IX. DO YOU THINK LITERACY IS REQUIRED FOR CASHLESS ECONOMY?
o STRONGLY DISAGREE
o DISAGREE
o NEITHER
o AGREE
o STRONGLY AGREE
X. DO YOU THINK GOVERNMENT SHOULD TAKE STEPS TO PROMOTE OR

IMPROVE CASHLESS TRANSACTIONS?
o STRONGLY DISAGREE
o DISAGREE
o NEITHER
o AGREE
o STRONGLY AGREE
XI. IN WHICH MODE OF PAYMENTS, DO YOU THINK MOST OF THE FRAUDS TAKE
PLACE?
o CASH
o CASHLESS TRANSACTIONS
o EQUAL
XII. WHAT IS THE REASON FOR FRAUDS?
o Lack ofAwareness
o Lack of Strict Actions against Scamster
o Lack of Literacy
o Lack of Technology Knowledge
o Lack ofProper Security System
73
XIII. DO YOU THINK INDIA SHOULD BECOME A 100% CASHLESS ECONOMY?
o STRONGLY DISAGREE
o DISAGREE
o NEITHER
o STRONGLY AGREE
o AGREE
XIV. WHOM DOES CASHLESS MODE OF PAYMENT BENEFIT MORE?
o GOVERNMENT
o BUSINESS
o PUBLIC
o SERVICE SECTOR
o NON-PROFIT ORGANISATION
o OTHER
XV. DO YOU KNOW WHAT IS CRYPTOCURRENCY?
o YES
o NO
o MAYBE
XVI. WHAT IS YOUR PREFFERED METHOD OF PAYMENT AFTER COVID-19?
o CASH
o CASHLESS TRANSACTIONS
o BOTH
XVII. WOULD YOU STILL USE CASHLESS SERVICES PAYMENT METHOD, IF THEY
CHARGE YOU FOR THE SERVICES IN FUTURE?
o YES
o NO
o MAYBE
74

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PROJECT REPORT ON

CASHLESS ECONOMY IN INDIA’

DEPARTMENT: Master Of Commerce

JOGESHWARI (WEST), MUMBAI. 2023-2024

I, Mr. SHAIKH YUNUS CHAND,

CASHLESS ECONOMY IN INDIA’

in the Academic Year 2023-

Signature of the Student

This is to certify that, Mr.SHAIKH YUNUS CHAND ,

CASHLESS ECONOMY IN INDIA’

in the Academic Year 2023-

Signature of the Principal & Examiner Signature of Project

(External Examiner) (M.COM COORDINATOR)

SHAIKH YUNUS CHAND

SR. PARTICULARS PAGE NO.

2 CHAPTER 2 - RESEARCH METHODOLOGY

3 CHAPTER 3 - LITERATURE REVIEW 34 - 35

4 CHAPTER 4 - DATA ANALYSIS, INTERPRETATION & 36 - 56

5 CHAPTER 5 - CYBER CRIME & CYBER SECURITY 57 - 67

6 CHAPTER 6 - CONCLUSION &SUGGESTIONS 68 - 69

“WE WANT TO HAVE ONE MISSION AND TARGET: TAKE THE

We might think of cashless transactions as a modern

 Prehistoric Age: Barter System

 Bronze Age: Valuable Metals

 Medieval Age - 18th century: The Rise of Cheques

 19th century: Money Transfers

• Bank transfers or wire transfers started during the mid- 19th

• The first ATM card was issued by Barclays in London in 1967.

• In 2018, 70% ofpeople in the UK now bank online.

 Contactless & Mobile Payments

• In 2007, the first contactless cards were issued in the UK by Barclays.

 TYPES AND USES

1. Cheques and Demand Drafts

2. Debit and Credit Cards

5. NEFT & RTGS

10. Net Banking

11. Gift Cards or Vouchers

NFC stands for Near Field Communication. It is a contact-less communication

National Payments Corporation of India (NPCI) provides the infrastructure to the

• NFS: National Financial Switch (NFS) ATM network

Cryptocurrency is an advanced and innovative payment tool. Bitcoin, the first

themselves or individual as Satoshi Nakamoto.

14. POINT OF SALES (PoS)

1. Being a cashless economy furthers

technology at its finest.

7. Service tax has been waived on card transactions up to ₨ 20 0 0 .

PERSON TO PERSON (P2P)

What is a P2P Bank Transfer?

BUSINESS TO PERSON (B2P)

B2 P or Business to People marketing

 Benefits of B2P Marketing

• target the people who make business decisions

BUSINESS TO BUSINESS (B2B)

The Definition of Business-to-Business Payments or B2B payments is the transfer of value

 Types of B2B Payment Methods

High Cash Dependency

Lack of Digital Infrastructure

Low Literacy Rate

Costly Swipe Machines