Meaning :

Virtual money is characterized as digital currency that exists solely in  electronic form, devoid of any physical manifestation, encompassing UPI balances, digital wallet funds, and cryptocurrencies.

Example:  For example, possessing ₹500 in your Paytm Wallet or transferring ₹1,000  through UPI illustrates the concept of virtual money.

How to Understand :  

Virtual money is electronically stored and utilized through smartphones, applications,  and digital platforms, replacing the need for physical cash transactions.

Importance : 

It facilitates swift, cashless transactions, significantly enhancing the efficiency of financial  exchanges.

Virtual money is essential for making online payments, streamlining the purchasing  e xperience in a digital-first world.

It reduces the necessity to carry physical cash, contributing to safer and more  convenient financial practices.

Virtual money is an integral part of the evolving digital economy, reflecting the ongoing  transformation of financial transactions and consumer behavior.