What are the four ways of cashless transaction?

Cheques represent one of the oldest methods of cashless payment. This traditional financial instrument allows individuals and businesses to transfer funds without the need for physical currency. Cheques are processed through the banking system, ensuring a secure and traceable transaction.

Demand drafts are another rudimentary form of cashless transaction. They function similarly to cheques but are typically issued by a bank on behalf of its customer. Demand drafts are pre-paid and guaranteed by the issuing bank, making them a reliable payment option for various transactions.

Online transfers, such as NEFT (National Electronic Funds Transfer) or RTGS (Real-Time Gross Settlement), have revolutionized cashless payments. These systems enable real-time or near-real-time transfer of funds between bank accounts, significantly reducing the time and effort required for traditional banking transactions.

Credit and debit cards are widespread cashless payment methods. They offer convenience and security, allowing holders to make purchases and withdraw cash from ATMs worldwide. Cards are linked to bank accounts, providing a seamless way to manage finances and track spending.

E-wallets and mobile wallets have gained popularity due to their ease of use and accessibility. These digital wallets store payment information and enable users to make transactions via their smartphones or other devices. E-wallets often support multiple payment methods, including credit and debit cards, bank transfers, and even cryptocurrencies.