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10 Sep 2017 | Target Mains | Question 1

 Discuss
  • Q.1)  What hurdles exist in making India a cashless economy? Discuss benefits of becoming a cashless economy and suggest how government can speed of this transformation.


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  •  puru rajput @puru-rajput

    koi answer check karega ya nahi

  •  puru rajput @puru-rajput

    @civil ily check

  •  puru rajput @puru-rajput

    chck

  •  puru rajput @puru-rajput

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    •  RK Sahoo @ramakant-sahoo

      Official Cd Review:
      – Firstly, avoid writing like note making…a proper answer should start with an introduction- which in this case could have been the statistic of high Cash/gdp ratio of India compared to other nations and the problems that come along with a more cash based economy…(50-60 words)..
      – Coming to body: good ideas but missing articulation and completeness..better choice of words and language…for eg: write lack of financial literacy, poor digital infrastructure…be specific in your keywords..this will show clarity in thought and fetch you more marks…
      – under benefits: your answer looks more like notes…sentences are incomplete..write complete sentences, underline keywords..
      – you have good content…make it more presentable and link more to Current affairs… awareness campaigns like Digidhan vyaapar, Ratan wattal committee, digi dhan melas etc could have been included…key points like MSMEs not incentivised to invest in digital infra(POS) etc..
      – can do much better, keep writing! work on content and presentation…
      Marks Awarded: 3.5/10

  •  Purushotam Kumar @puru2220

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  •  Nitika Deswal @nitikadeswal

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  •  Sukhmaninder Tuli @sukhmaninder-tuli

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  •  Nitika Deswal @nitikadeswal

    ….

  •  Ankamma Rao @ankammaraopattela

    1.Hurdles for India to become cashless economy.
    a.lack of digital literacy.
    b.No internet access in rural areas and remote places.
    c.no robust mechanism for looking in challenges faced by people for transforming to wards digital economy.
    d.no bank accounts for old age people.
    e.cyber treat for online purchases, transactions.

    2.Benefits of cashless economy.
    a.Increases transparency and accountability in governance.
    b.reduces corruption.
    c.it will create customers friendly ecosystem.
    d.increases revenue to government by avoiding tax evasion.
    e.government schemes can reach real beneficial and to gross root level.

    3.Steps to be taken to speed up transformation.
    a.educating the people about benefits on cashless economy.
    b.bringing in robust mechanism in looking in issues of cyber security, challenges faced by people.
    c.making internet facilities available to all the people at affordable prices and at reachable distance.
    d.allocating more budget for training and Providing skill to people.
    e.use of NGOS and volunteer help in promoting digital literacy.

  •  Vishal Kalal @vishalkalal

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    •  Vishal Kalal @vishalkalal

      I couldn’t upload page 1 of this answer, am uploading it now hopefully it will get uploaded.

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    •  RK Sahoo @ramakant-sahoo

      Official Cd Review:
      – avoid superfluous language…good points overall…
      – link to current affairs(digidhan melas, digi =dhan vyaapar yojana etc, ratan watal committee on digital payments could have been mentioned..)
      – Avoid unnecessary information- use your space and time wisely…focus on presentation( underline keywords)
      – good attempt…can do better! Keep writing!
      MarKs Awarded: 4/10

  •  Khemchand Gujjar @khemchand-gujjar

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    •  RK Sahoo @ramakant-sahoo

      Official Cd Review:
      – good understanding of the topic and overall good points…intro and conclusion could have been better..
      – Too general points at times…you could supplement your points with stats and linking it with current affairs ( schemes, digidhan melas etc)…other key points missing( refer to reviewed answers or model answers )
      – otherwise, overall good attempt…can do much better…focus on presentation too..(underline keywords)..
      Marks Awarded: 4.5/10

  •  Parvathy @parvathy2490

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  •  Divya M @divimuraj

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  •  Vk Kumar @vkkumar

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  •  Kunal Aggarwal @kunalaggarwal

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  •  Akhil Pareek @akhil91pareek

    Request you to please review.

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    •  RK Sahoo @ramakant-sahoo

      Official Cd Review:
      – very good content and articulation of thoughts…
      – avoid spelling errors( literacy) …avoid overwriting rather strike it off and rewrite it again…
      – more linkages to current affairs like successful models, digidhan melas, ratan watal committee etc could have enhanced your answer further…
      – otherwise, very good effort..keep it up!!
      Marks Awarded: 5.5/10

  •  RAHUL JAIN @rahul-jain1

    KINDLY REVIEW 🙂
    WORDS: 230
    The recent controversy regarding Demonetization has once again brought focus the relevance of digital economy in the Indian context.
    Cashless economy is the economy wherein all the transactions are taken via cards or digital payments and the usage of physical money is minimal. The benefits of the cashless economy(in the Indian context) are:
    1. A step towards keeping up with the times of Information Technology.
    2. Improved financial inclusion and formalization of the economy(via extension of banking services, attitude of thrift etc.)
    3. A tool of empowerment for the poor(esp. the rural women).
    4. Improved tax base, coupled with aiding in elimination of money laundering,black money, tax evasion etc.
    5. Improvement in service delivery(w.r.t subsidies, welfare schemes etc.) and reducing inefficiencies and wastage.
    6. Would reduce the banks’ expenditure w.r.t manufacturing and maintenance of physical cash.
    However there are some challenges too:
    1. Insufficient infrastructure-internet connectivity, ATMs, Point-of-Sale Machines, Banking Correspondents-etc.
    2. Propensity to use cash than e-payments(<5% digital transactions)
    3. Lack of awareness among people coupled with the apathy of the banks to promote digitalization.
    4. Concerns of robust security framework(e.g. the recent HDFC breach)
    Taking note of this, the govt has taken various steps including PM Jan Dhan Yojana, Digital India, RuPay card, BHIM App, Direct Benefits transfer, FDI relaxations in e-commerce and digital sector, revision of the cyber security policy,Digital Saksharta Abhiyan etc. which would aid a long way in India truly becoming a digital economy.

    •  RK Sahoo @ramakant-sahoo

      Official Cd Review:
      – very good clarity over the topic..impressive linking to current affairs especially last part..
      – write complete sentences, avoid make it look like note making at few places..
      – make it a point to underline keywords that enhances your presentation …
      – your ability to convey ideas in concise manner is impressive..keep it up!
      – overall good effort…just need to fine tune your answer further..
      marks Awarded: 5.5/10

  •  Soham Banerjee @soham-banerjee

    Please find attached. The scans got attached in reverse order. Sorry for the inconvenience.

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  •  Mishab Muhammed @mohdmishab

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    •  RK Sahoo @ramakant-sahoo

      official Cd Review:
      – innovative presentation in first half…good points overall…
      – few more vital points like greater efficiency in welfare programs, reduced transaction costs etc
      – more content on what can be done is missing like awareness and digital literacy campaigns like digidhans vyaapar yojana, digidhan melas etc..link to current affairs …
      -Otherwise good attempt…can do better..keep writing!
      Marks Awarded: 5/10

  •  varnit sharma @varnit-sharma

    A cashless economy is one in which all the transactions are made either by using credit cards or any other digital means.Benefits of cashless economy are but overdependence of Indian economy on cash and many other structural roadblocks put hurdles on the way of ripe this benefits .
    Benefits of cashless economy are –
    1.cashless economy helps to avoid tax evasion and thereby help to broaden the tax base.
    2.cashless economy also helps to curb the generation of black money which is biggest menace for the Indian economy.
    3.cashless economy helps in financial inclusion.By direct transfer of benefits to the bank accounts of the poor,it would also increase the efficiency of welfare schemes.
    3.Cashless economy help to break the vicious cycle of informal lending in which large number of farmers are caught today.It will increase the pace of formal credit.
    4.RBI spend lot of money every year to print money,cashless economy will help to reduce this coast.Coast in maintaining the ATMs would also come down.
    5.Uihindered flow of credit initiated by cashless economy would also help in growth of SMEs .This would help to deal with problem of unemployment to some extent.
    6.lastly,dirty notes are the norm in Indian economy.germes carried with transactions of cash spread diseases .with cashless transactions ,possibility of this wuod also reduce.
    So these are some benefits wof cash less economy.But Indian economy is predominantly dependent on cash.India had 76.4 billion notes in circulation in 2013.Informal sector which has large share in Indian economy depend on cash which makes cashless transactions more difficult.Further,people in rural areas are less educated and aware about the cashless transactions.They find cash transactions more suitable then cashless.This attitude also hinder the growth of cashless economy.Another roadblock in the way of cashless economy is lack of internet a viability and other digital means especially in rural areas ,this puts another big challenge.
    Government has introduced various initiatives like organising digi mela to promote cashless economy,introductions of electronic valleys,incentivising e- commerce by libralisinf FDI and introduction of various apps like BHIM app and UPI.Though these measures are linitiated in right direction but much more needs to be done like ensuring the usage of bank accounts by poor,ensuring a viability of internet connections ,incentivise customers and sellers to use digital means ,spread ofeducation and information about cashless economy among people especially in rural areas and ensuring safe transactions by implementing robust cyber security architecture.
    Though it is not possible to complete tradition to cash less economy but as prime minister also said,it is always possible to be less cash.We should start with less cash and the switching over to cashless would be much easier.

  •  meera j @meera-j

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  •  Rajyashree Mukherjee @rajyashreemukherjee1

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  •  Siddhesh Sardal @siddheshsardal

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  •  White Walker @upsc-demolisher

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  •  Narayana Sarma @narayanacbe

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    •  Narayana Sarma @narayanacbe

      PLEASE IGNORE IMAGES AND REVIEW ITS TEXT VERSION

      A Cashless economy is one in which most transactions take place through electronic or digital means. India’s aspiration for such a cashless economy gained momentum when a strong determination to curb black money arose. Eg: Demonetization.
      However, India’s cash to GDP ratio is highest and less than 5% of its economic transactions take place through digital means.
      Some of the HURDLES in making India a cashless economy are as follows,
      1. Poor digital literacy: Most of the Indian population from “rural areas lack awareness” about non-cash transactions such as cheques, cards etc.,
      2. Government fees: The “tax on card payments” forces people to stick to cash payments
      3. People’s perception: “People prefer cash” over other means of payment as they feel cash has “better negotiation.” This is evident from “unused Jan Dhan accounts, highly informal economy.”
      4. Internet availability: Despite increasing digitization, many people, especially poor lack access to internet, the very backbone of digital economy
      If these shortcomings are addressed, the following BENEFITS of cashless economy can be harnessed,
      1. Less tax avoidance: As the cashless economy has less physical cash in circulation, there will be “no hoarding of black cash”, thus curbing tax avoidance and increasing accountability
      2. Cost savings: RBI’s “spending on printing notes” can be “drastically reduced” due to less cash usage in economy
      3. Fall-outs: As multiplier effects, there will be “improved access to credit and greater financial inclusion” as many people are brought closer to financial institutions
      4. Less leakage: As G2P payments are credited directly to targeted beneficiary’s account, there will be zero leakage. Eg: “DBT”
      The government can speed up cashless economy by taxing higher the ATM transactions, provide “fiscal incentives, collaborate with micro-finance institutions.” The initiatives like “Digi Dhan Vyapar Yojana” and “Lucky Grahak Yojana” are steps in right direction.

  •  Vivek Singh @viveksingh2

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This topic contains 34 replies, has 24 voices, and was last updated by  RK Sahoo 1 week, 1 day ago.



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