Meaning :

Virtual money refers to digital currency that exists solely online and has no  physical form, including UPI balances, wallet money, and cryptocurrencies.

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

How to Understand :  

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

Importance :

It facilitates fast, cashless transactions, enhancing the shopping experience.

Virtual money is convenient for making online payments, allowing you to purchase items  easily.

It reduces the need to carry cash, making transactions safer and more streamlined.

Virtual money is an increasingly important aspect of the digital economy, reflecting  modern financial practices.