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Use Of Plastic Money In India: Aspiration Vs Reality 

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In of player raised to more than ten in 2000. The credit card market registered a healthy annual growth rate of over 25% during 1987-2001.year. The Indian government had decided to demonetization of the notes of Rs1000 and 500 w.e.f. 8th November 2016 and then there after the new era started for cashless economy and huge uses of plastic money in India. The Plastic money is a term that is used Credit cards and debit cards as an alternative to cash. The plastic money have different forms such as cash cards, credit cards, debit cards, pre-paid cash cards and store cards. The evolution of plastic money dates back to the 1920s, when the first payment card the late 1990s, plastic cards are very common and by 2001, plastic money had become a necessary form of ‘ready money’. It was in the 1950s the concept of plastic money came into being. Citibank and HSBC were the pioneers in the Indian credit card market in the 1980s. Over the next two decades, the number

was introduced in the USA. Diners Club and American Express launched the world’s first plastic card in the USA, in 1950. The first credit card was introduced by Diners Club in 1951. However, the plastic cards began to be widely used only after 1970, when the specific standards for magnetic strip were set. Spending through credit card rose by 30% year on year to Rs 22128 cores during the April June of quarter of2011-12 against Rs16948 Core,(according to the data resealed by RBI ) Relevance of the study – after demonetization, Has India really become cashless? the aim of this study is to analyses the benefit and drawback of plastic money in India.

It is easier to deal with cards than cash. Yes, the advantages of plastic money over cash has made it a best friend of many.. When we say plastic money, it includes debit cards, ATM cards, credit cards, prepaid cards, smart cards and so on. The main advantage of plastic money is that it avoids the necessity to carry huge cash and is also difficult to mutilate. The disadvantage being there are still many among us who do not know how to use a plastic card wisely. This articles deals in general about the main merits and demerits of polymer money. Can India really become cashless —-In case of POS terminals mobile Internet is used to make transactions happen .However the rate of mobile internet penetration in India remains weak especially in rural India .These transactions are also costlier since the bank levy .some fee for each transaction .This along with poor rates of awareness and information among rural and Sami urban people in India make it rather hard to promote the usage plastic money .

Advantages of Plastic Money

Let us learn in detail the advantages of using plastic money instead of cash. Cash vs Plastic money; which one will you go for? In my study I take opinion from 200 people ,in my stu , I found 80% are cards holder are young people and they are like to used plastic money in their opinion the advantages of plastic money is easy carrying. The convenience, the quality of cards when compared to bank notes, difficulty to duplicate easily like notes, Cards fit into the wallet easily: It is essential that we need to have some sort of money in hand always as we never know when a need arises. But carrying a lot of cash in hand is not at all a wise idea. Also, who would want to carry a lot of cash in hand and make their wallet bulge out. In such situations, plastic money comes for help. Your wallet will remain perfect and your cash needs will also be sorted out. If required you can take cash using plastic cards.

Also, it is safe when you have a card with you as even if it is lost, you can always call the bank and ask them to block it. This avoids misusing the card by any. But when it is cash, you are not left with that option and you will end up losing your money. Cards are waterproof hence you don’t have to get panicked even if water spilled over your wallet. They are strong and durable. Crime rates will decrease: We are living in a world where thefts and crimes are on the increase. Keeping cash in hand is not a safe thing to do.. One of the main advantages of plastic money is that the same card can be used locally as well as internationally. For example, you can get rid of the hassle of converting the cash into the currency of the country you are planning to travel. If you have an international debit or credit card, you can make your purchases with that card itself. So the problem of running out of cash will not happen even if you are abroad and that helps you to have a safe journey without worrying about the cash and budget..

but other side I found some people dislike use of plastic money in their opinion major part of Indian population are rural , they people like liquidity in cash form so here we also describe the demerits of plastic money which comes through my study

Disadvantages of Plastic Money

Like everything, plastic money also has its own advantages and disadvantages. We should sensibly use it care all the below points in mind. If you are smart , you can make use of the cards but not everyone can be guileful. So for those who are not well aware of the cards and its disadvantages should always be careful to avoid themselves being in trouble. Plastic money won’t help always: Plastic money is not a complete replacement for cash. In certain places, we need cash itself. E.g. while buying flowers from the market or when paying to the servant, we need cash itself as they do not carry POS machine to swipe the plastic money. Similarly, we can not used money at religious places and social and cultural functions . Unless we have the facility to use plastic money everywhere, we cannot replace cash completely. Still, there are small retail shops which do not take plastic money. In villages, scarcely we find any shops that accept plastic money. It makes us essential to carry some cash always for our safety.

Plastic Money is also not 100% safe: There is a certain amount of risk intricate in transactions which involves plastic money as well. Especially when doing online shopping. We are exchanging the details relating to our card over the internet which is not always a safe place. Some websites are just set up to steal our financial information and loot money thereby. We should not fall in to such scams and hackers.

Service charge in certain cases: When we are using plastic money instead of cash, in certain cases the bank charges a service charge for the purchase of certain items. For instance

Card too can get damaged: Imagine a situation that your card is damaged or when trying to swipe, the transaction is not getting proceed due to some chip error or damage. You will definitely wish if you had some cash in hand. Interest, for non payment: A credit card allows you to purchase today and pay for at a later period of time. It gives you a credit period, but if we fail to make the payment within the due date, interest will be charged. When we are using cash, we are not taking any credit from the bank, hence non-payment does not occur.

Conclusion – today’s economy is knowledgebase economy and Indian economy is not exception We are living in e commerce world where almost every other person holds plastic money along with cash. But we should know the advantages and disadvantages of it in order to use the plastic money ably. Plastic money is demand of new era time , and we can hope Indian economy gradually become on the path of cashless economy ,its depend upon political will and public cooperation

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