Meaning :

Virtual money is defined as digital currency that exists exclusively in electronic  form, lacking any physical representation, including UPI balances, digital wallet funds,  and cryptocurrencies.

Example:  For instance, having ₹500 in your Paytm Wallet or executing a ₹1,000 transfer  via UPI exemplifies virtual money.

How to Understand :  

Virtual money is stored electronically and utilized through mobile devices, applications,  and online platforms instead of traditional cash

Importance :

It enables rapid, cashless transactions, streamlining the purchasing process.

Virtual money is convenient for online payments, allowing for efficient and quick  purchases.

It diminishes the necessity of carrying physical cash, enhancing safety and convenience.

Virtual money represents a growing and essential component of the digital economy,  reflecting advancements in financial technology.