Introduction

The Indian economy has shown much variation in stepping ahead from a cash to a cashless economy. Since 2016, after demonetization, the money in the economy changed drastically. In the modern economy, money flows digitally. Through electronic media, transactions are made without cash. Thanks to upgrading technology digital money are coming real.

A cashless transaction economy is introduced where cash becomes an option to use for payments but now payments can be done by digital methods. That doesn’t mean cash is no longer the king in the economy, but digital payment is becoming the modern payment system.

What is a Cashless Transaction System?

A cashless transaction system is a system where payments are done digitally. In cashless transactions the payments are made without using hard cash in the form of notes and coins, instead, the payments are done by using cheques, bank cards i.e. debit cards and credit cards, DD, NEFT, and other forms of online payments.

In the current economy, cashless transaction is aroused. In India, around 40% of all transactions are digital. Earlier, cash is the real king in the economy but since the technology has come so far payments are mostly done cashless only then why do we need these digital payment methods lets know about it.

Why Cashless Transaction is Needed?

Cashless transaction helps to make easy payments. Through cashless transactions, corruption can be reduced and helps to curb the flow of black money in the economy which indeed helps to increase economic growth.

Cashless transactions are done fast, smoothly, and hassle-free. There is no burden of cash transfer i.e. the safety of money; there is no threat of robbery in digital money.

Cashless transactions also attract foreign investors to the country. It helps to count each and every penny thus it is difficult to avoid taxes. This helps to make the exchange of money corruption free.

Types of Cashless Transaction Methods

Cheques

Cheques are the very known, safest, and oldest method of cashless payment. A cheque can be issued for a specific amount to a person or a business. The cheque gets deposited in the respective bank and the payment is processed by the bank through a clearing house.

This cashless transaction is recorded and there is proof of the payment. There can be issues that come across if the signature is mismatched or there is an insufficient fund. The main disadvantage of cheque payments is they are a time-consuming process you need to visit the bank in order to deposit a cheque and consumes time for clearance too.

Demand Draft

It is another safest option for payment like a cheque. DD is safer than cheques as it never creates issues of dishonoring and never gets defaulted as it is signed by the banker. DD also has the same disadvantages as a cheque as it also needs you to visit the bank and take additional time for clearance.

Credit card and Debit Card

Credit cards and Debit cards are provided by the banks for cashless payments they can be used for online payments and one can swipe the card over the counter of the store. Now, the usage of bank cards has increased. A debit card is safer than a credit card. Through a debit card, you can spend the money which is saved in your bank account

Whereas credit card leads you to the risk of overspending the money of the card limit which is difficult to recover later. The limitations are the merchant should have the availability of a Swipe Card Facility.

Online Transfer through NEFT or RTGS

These are internet banking facilities. Money can be transferred online from anywhere using the internet facility. This method is faster as compared to cheque and DD. National Electronic Fund Transfer (NEFT) and Real Time Gross Settlement (RTGS) are online transfer facilities maintained by RBI and can be done between bank accounts only in India.

The limitation of this facility is there is no option to stop the payment transaction and the payments are unrecoverable.

UPI Applications Payments

UPI stands for the Unified Payment Interface which is a mobile payment transaction system that allows you to transfer money by using smartphones. This interface totally changed the transfer system as it is done without entering the bank-related information in every transaction process. In this method, you can send or receive money by using a UPI id. The most popular UPI apps are Google Pay, SBI pay, ICICI Pocket, BHIM, PhonePe, TranZapp, etc.

Mobile Wallet

This is another cashless payment method as the name suggests itself i.e. using mobile like your wallet. Here, you do not need cash, debit or credit cards, or internet banking to make payments. It now becomes the easiest way to make payments without cash. In this method, you need to load money into your mobile wallet and use it for your needs. This wallet can be easily downloaded from the play store. There is a limitation in mobile wallet i.e. you can send or receive money with other merchants who has the same mobile wallet app with him. Some other mobile wallet apps are Paytm, PayUmoney, Mobikwik, etc.

All these methods are used to make online payments. Digital transactions make individual life easy as it is more convenient to make payments online and not carry cash everywhere with you. A cashless economy has numerous benefits yes they may have some limitations but still, the benefits are more. This will provide economical benefits too.

The economy is changing with methods and policies too yet there is the necessity to learn about all the updated things which are changing around you. The young generation needs to learn the current knowledge related to economy and commerce. Thus, there are courses available for them to learn.

A diploma in cashless transaction system is introduced by the universities to acknowledge you. Education is important to enter the working environment of commerce. This is a diploma for commerce students to study commerce, business management, money management, and about cashless economy.

This program teaches about the modes of cashless transaction systems like net banking, and online payments through different methods and transaction apps which help students to gain knowledge about the various platforms of online transaction systems and tools used in the modes of payments.

There are many institutions that are providing this course but you have to choose the best for the best knowledge and experience.

MANSAROVAR GLOBAL UNIVERSITY (MGU) is a private university in Madhya Pradesh, India. It is approved by the Bar Council of India and affiliated with the University Grants Commission of India. MGU campus is vast and offers degree courses as well as diploma courses in science and technology, business administration, arts and management, and diploma courses in commerce subjects.

The university vision is dedicated to quality learning. The faculty is highly educated and experienced; provide all the aspirants with high quality of education and values.

The course of diploma in Cashless Transaction System is 1year duration course. With fees for 1 year is 20000rs.

Eligibility for the course is that the candidate must have 50% aggregate marks in 10+2 or equivalent. There is relaxation provided for the reserved category students as per state government norms.

5% Reservation is given to the reserved category students.

For further details, you can check their official website www.mguindia.com