Meaning :

Virtual money is digital currency that exists only online and has no physical  form, like UPI balance, wallet money, or cryptocurrency.

Example:  For instance, having ₹500 in your Paytm Wallet or transferring ₹1,000 through  UPI is considered virtual money.

How to Understand :

Virtual money is money stored electronically and used through phones, apps, and online  platforms instead of physical cash.

Importance :

It enables fast and cashless transactions, making shopping easier.

Virtual money is convenient for online payments, allowing you to buy things without  using cash.

It reduces the need to carry cash, making it safer and more convenient.

Virtual money is becoming an essential part of the digital economy, which is growing  rapidly.