In order to obtain a commodity, we have to give something in return. That is, we have to pay some consideration in money or money’s worth. This process is called an exchange. There can be two types of exchanges – money exchange and barter exchange. In early days, barter exchange was prevalent. Money as a medium of exchange came much later when people saw deficiencies in the system of barter exchange. For example, consider a person with excess rice in hand and who wants to exchange it for some clothes. Now searching a person who has surplus clothing and who wants to exchange it for rice only is very difficult. The search costs become restrictive as the number of individuals increase. Thus, to avoid such a problem, an intermediate good is necessary which is acceptable to both parties. Such a good is called money.

Which of the following initiatives is NOT a mean of the government's resolve to go cashless?

None of the above

The correct answer is Option 4: None of the above

 Some countries have made an attempt to move towards an economy which use less of cash and more of digital transactions. A cashless society describes an economic state whereby financial transactions are not connected with money in the form of physical bank notes or coins but rather through the transfer of digital information (usually an electronic representation of money) between the transacting parties. In India government has been consistently investing in various reforms for greater financial inclusion. During the last few years’ initiatives such as Jan Dhan accounts, Aadhar enabled payment systems, e –Wallets, National financial Switch (NFS) and others have strengthened the government resolve to go cashless.