3. Certificate
This is to certify that Vivek Jain, student of Shri Vaishnav Academy,
Indore have completed there project on “WASTE MANAGEMENT” in the
year 2016-17.This project is their original bonafide work carried out by
them under our guidance. They worked sincerely and have given a
satisfactory work in the project.
Mr. H.C.Tiwari
(Principal)
Date:- 26-11-16
Place:- INDORE
4. acknowledgements
I Vivek Jain, student of Shri Vaishnav Academy, Indore thank Shri
Vaishnav Vidhyapeeth for giving us this opportunity to present
ourselves on this platform.
Presented by:-
Vivek Jain
5. Contents
Introduction
• Problems with Current Indian Economy
• A Digital Economy
A Cashless Economy: How Does it Work?
• Mode of Depositing
• Way of Payment
A New Taxation System
Working of The New System
Advantages
8. I have crores of rupees
in my bank account
but I can’t pay my
debts
9. introduction
Problems with Current Indian Economy:
A lot of black money exists in this economy.
India owes a foreign debt of Rs. 6,92,100 crore,
i.e. Rs. 69,21,00,00,00,000
Recently Swiss Bank revealed that a total of
Rs. 99,83,400 crore the total amount in Indian
Accounts in the bank
There is thirteen times more black money than
what are pending loans on the country.
10. introduction
A Digital Economy:-
• As Cash is seldom used, it can also be called as a “Cashless
Economy”.
• This idea is new coming and only exists in a few countries.
11. A cashless economy:
How does it work?
Mode of Depositing:
Users are issued with a card called
Electronic purse . The electronic purse
is topped up Using revaluation
terminals. A range of terminals are
Now Available including coin & note,
Credit Card or payroll deduction
terminal.
12. • There are several key components that enable
the digital economy. There's the technology
infrastructure itself -- the hardware, software
and networks. There are the digital processes
by which business happens, in other words,
the e-business component. Another key
component is e-commerce, the digital
transactions through which customers buy
and obtain products and services from
organizations.
13. • The digital economy is not simply about
moving business transactions from face to
face to online. The digital economy is about
transforming the many facets of business
interactions and transactions and also
enabling economic innovations. For example,
the digital economy both is enabled by and
has given rise to the advent of new digital
currencies and payment processes
(i.e., and the digital wallet).
16. Card readers are installed
at all Points of Sale (e.g.
vending machines,
Restaurant tills, coffee bar till, staff shops). Instead
of juggling with cash at the Point of Sale, the card
is inserted into the reader and the total sum of
the purchase is quickly and accurately deducted
from the card.
17.
18. Working of new system
Every individual is required to have bank
accounts. These accounts would operate on
Internet Banking and other digital forms. Since
almost no cash would exist, people will use
digital cash for their everyday transaction.
Once a transaction is made, government can
charge tax on the transaction. And the
successful transaction would occur.
19. Working Of The New System
Electronic Transfer
Deductionof1-5%
Payer Receiver
Government
20.
21. Advantages
• As the economy is cashless, a lot of paper will
be saved that would have been used for
making currency. This would be a great step to
sustainable development.
22. • Many crimes like corruption, kidnapping and
extortion require cash. In a cashless economy,
no such crimes would have their existence.
23.
24. As a computer would be looking at transactions
and charging the tax, A lot of government
revenue will be saved as there would be no need
of departments like Income Tax, Excise Duty etc.
In short, there will be no need of Indian Revenue
Services.
25. • As the entire money is digital, no terms like
Black Money, Green Money would exist. No
tax would be stolen as tax would be directly
charged at the time of transaction itself.
26. • Many problems of people would be solved as
their would be one tax scheme. People will no
more have to worry for different kinds of
taxes.
• Now everybody would be charged tax. There
would not be anyone left who could say that
he doesn’t pay tax.
27.
28.
29. Limitations and Disadvantages
• For this system to work, there should be
registered bank accounts of every person.
India is lagging a lot in this aspect.
30. • A Digital System means a lot of power
(electricity) is required for this system. India
still faces a lot of power shortages. After this
system, power requirements would be
increased to almost twice of what it is now.
31. • For this system to work, one of the foundation
requirements is that every citizen is literate. In
India Kerela is the only such state.
• It is required that every
shopkeeper, vendor, taxi
driver should have
machines and gadgets
to accept the transaction.
32. • The greatest harm to this economy is hackers.
If somehow the economic system is hacked,
hackers can do every possible thing. Any one
can become rich from rag or rag from rich in
just a few seconds.
33. Solutions always exist
• Even if people are not literate, they can learn
to operate the electronic purse.
34. • Hacking problem can be solved by ideas like
one time passwords(OTPs) and security can be
made more difficult to cross.
• All the locales would install the required
machines to accept transaction as the
necessary change generates itself.
35. • If solar power plants are installed, a lot of clean
and cheap energy will be generated which
means in effect that the problem of power
would be solved.
36. • Once the economic system comes into
existence, more and more people would join
this system, given its advantages. Awareness
would compel them to open up with bank
accounts.
37. Digital Economy Data
The world is changing fast. We are at the dawn of
the Fourth Industrial Revolution, which will bring
together digital, biological and physical
technologies in new and powerful combinations.
The World Economic Forum’s Networked Readiness
Index is a key indicator of how countries are doing
in the digital world. It measures how well an
economy is using information and communications
technologies to boost competitiveness and well-
being.
38. • Singapore is at number one. The ranking is, to a large extent, the result of
strong government commitment to the digital agenda.
• Gains from information technology are widely shared in Singapore, and it
makes excellent use of digital technologies to provide access to basic and
government services, and ensure that schools are connected.
• Finland ranks at number two. The country has extremely good access to
the latest technologies as well as venture capital, and its businesses are
highly connected.
• Norway moves up to fourth place ahead of the United States, which has
also risen this year. The US stands out in terms of its extremely favourable
business and innovation environment, which has led to one of the most
agile and digitized business sectors in the world.
• The United Kingdom stays at number eight. Perceived venture capital
availability and UK government procurement of advanced technologies
have improved in the last 12 months.
39.
40. Top down
• Government support is important when it comes to an
economy becoming networked ready. When
governments were ranked according to their tech-
savviness, Singapore again came out top.
• There are two other Asian countries in the top 10:
South Korea and Malaysia. Three Arab nations feature:
the United Arab Emirates, Bahrain and Qatar.
• The European Union is represented by Estonia,
Luxembourg and the UK, while the United States
government does not appear anywhere in the top 10.
41.
42.
43. Practical examples
Following countries have practically applied this
new economic system:
Kenya
• The biggest African user of mobile money is
Kenya, where there are 15 million subscribers
to M-Pesa. Though originally a method to send
money home from cities to families in rural
areas, M-Pesa is widely used for many things
from receiving salaries, to paying bills and
school fees, slowly making cash obsolete.
44.
45. • As of January 1, 2013, no more new Canadian currency
is being printed. Why? Firstly, there has been a
decrease in demand for new bills.
• Secondly, the plastic bills have a longer life expectancy.
The biggest reason: a push toward driving a cashless
future. According to a poll by PayPal Canada, 56% of
Canadians already would prefer to use a digital wallet
than cash. Also, Canada is a world leader in plastic
payment, where payment by credit, debit and bank
cards is almost 70 per cent compared to a world
average of 40 per cent.
46. • Though one of Africa's poorest countries, a
mobile revolution has created an informal
electronic banking system with more efficiency
and convenience than many far more developed
countries in the world.
• Cash is disappearing and there is no need for
credit cards because even street vendors accept
payments by mobile phones. A survey in 2012
found that the average customer made 34
transactions per month on their mobile phone
higher than almost anywhere in the world.
51. The Problems That exist in modern
economy would no doubt won’t exist in
the new cashless economy. But as it is
clear, the proposed economic system
will also come with some of its own
small problems. As it is said: “Change is
the only Constant thing in the world”.
This change is inevitable and will come.
No matter what anyone feels or says,
this economic system will come
into existence at a pace much
faster than what we can imagine.
