Merits and Demerits of Cashless Economy

A cashless economy means economic state whereby transaction are not done by the physical banknotes but rather through the digital transformation between the two parties. In simple words we can say that if we do transaction by our bank cards is a cashless transaction.

It has huge benefits, If we have all the resources to use it especially in urban cities. It stops crimes, like nobody can steal your money, keeping cards is easy apart from carrying good amount of money in your bag.

It generally doesn't have much demerits but the basic demerit is like if we don't have money in our hand we have to run for ATM.

But nowadays paytm, phone pay application are providing the best services to make it convenient and successful. Slowly, being cashless will be our second nature. It just needs little patience by the people if India, and Govt has to put some efforts to modernize the rural place and we should appreciate many program, schemes and campaign organized by our Government.

Thanks.

Hi everyone.

Myself Mohit Kumawat.

First of all, we need to understand what is the cashless economy. It is process through which transfer of money can be done by the online system at home without carrying real currency, no need of a pen, paper and our physical appearance at anywhere.

It has many merits as follows.

- there is no need to carry a lot of cash.
- it makes us to feel secure regarding cash anywhere.
-we can book a hotel, movie tickets, food order etc. And pay electricity bills and water bills easily in just a single minute without going Outside.
-it also supports to reduce corruption in a country like India where corruption is at peak level.
- it provides transparency in our work.

It has some demerits as follows.

-It is difficult to do online work for uneducated people mostly in rural areas.
-Sometimes transaction failed due to technical issues.
-Sometimes problems create relating to Internet speed and electricity.
-Sometimes account can be hacked by Hackers.

Advantages of Cashless Economy:
1. Minimizes risk of theft
2. We can Pay our bills on time by using paytm, phonepe and any other apps
3. Safer and Efficient
4. We can do transaction anytime, anywhere.
5. By using Digital Transaction by can have proper record of all our transactions
6. Reduces chances of black money
7. Reduces paperwork
8. Saves time.

* Disadvantages of Cashless Economy:

1. Non-Availability of cash in all the ATM's
2. As we all know the rate of illiterate people in India is high, so there will be a problem for villagers as they don't know how to use technology
3. One of the main disadvantage of cashless economy is network problem, when we are in the final stage of transaction and there occurs a network problem, the amount will be deducted from our account but the transaction fails due to network problem
4. Fear of cyber hacking, by this fear people get confused whether digital transaction is safe or not.
5. Unawareness of the digital transaction.

Hello everyone.

Cashless economy is the best thing it save our time and money. We use so many online payment apps which are very helpful to us. The use of these apps are no more difficult it's very simple. In the rural areas most of the people are also use internet after the Jio came. I know other part of people in rural areas they are no familiar with online transaction or social media but it doesn't mean they can't learn. There are some need of awareness and need of training to them.

Cashless economy save our money. I give you an example I am an engineering student and before the cashless economy in 2015 I have paid my fee through demand draft. I had paid 700 more than the my fee. But in this year I paid my fee by online transaction I didn't pay any extra ammount even I got 200 rupees.

But there are certain demarits in cashless economy like cyber crime, server problem, chamces of data leakage. So we need to work on these demerits and make the digital India.

Hi everyone!

I think cashless economy has its own merits and demerits.

Merits :

A cashless economy is very beneficial for us. Because in this era of a cashless economy we can save our time. And with the help of this, we did not want to carry a huge amount of money with us for any work. And it also helps us in shopping. Because we all have apps like paytm, phonepay etc that helps us to pay easily and it also help us to recharge our phones.

Demerits :

If there are advantages of anything so obviously there is disadvantages also.

Because there is not much awareness of the cashless economy in rural areas and there is also a shortage of network connection so it is difficult for them to use a cashless economy effectively. And the main problem is hacking.

Online payment and transactions are not secured fully that's why it is the main disadvantage of a cashless economy.

Finally, the cashless economy has many advantages and disadvantages too.

Thank you.

Nowadays everyone is going for online payments, even a small grocery shop has services, by which customer can pay them online which have many benefits but one important benefit is that people don't have to carry cash with them. And also there are many more merits of cashless payments like you get extra coupons or cash backs when you do a payment online. But again everything has its merits and demerits, the biggest demerit is the network availability/internet connection, your payment can get stuck and sometimes withdraw has been done from your account but the amount does not reach the other person account. Which actually makes us more worried about it. Second important thing is that online payments are not for larger transactions, there's a fixed limit for your daily transactions. But I personally do prefer cashless payments, which makes me less worried about my cash as I don't have to carry much with me. And sometimes cash backs make us happy, right?

Good morning/ evening everyone.

I want to share my views about the merits and demerits of a cashless economy. Before telling about the merits and the demerits of the cashless economy we need to understand what the cashless economy actually means. As we know with the advancement of the technology we produced some invaluable systems which are helpful to human beings particularly after the invention of the "Internet" the economic system took a drastic change as we are moving from the cash liquidity to cashless economy by making everything digitalize. Following are pro of the cashless economy:

(1) with the help of cashless initiate, we are able to acquire all services like the ones which we would have not imagined before as we don't need to wait in queues in banks as we can do transitions without the hassle.

(2) The cashless economy saves our important time.

(3) the system of sending the money from one bank to another bank is easy to use.

Hello, everyone Jai hind to all of you.

Today, I am going to discuss the merits and demerits of the cashless economy as we all know that there are two faces of every coin so the cashless economy has also two sides. First, I will discuss the good side of the cashless economy. Due to cashless economy, we can save our time because you can pay in a minute by paying, phone pay, other digital apps but in my opinion, India is not ready now for the cashless economy because as we all know that the most of people in India are illiterate so they don't know how to do payments by phone or computers so I think India will be ready for the cashless economy after two or three-decade. Now I will tell you about the bad effect of the cashless economy. There is a lot of risk for cybercrime. As we know that there is not any strict rules in India for cybercrime so it is increasing day by day. So if your account would get hacked then you will lose your money.

Hello friends.

It is modern era and now all things are updating with a new technology which not only saves our time but also reduce our tension. A cashless economy is one of the best ideas. It has many advantages. Firstly, it saves our time now we don't need to stand up in the long queue for deposit and withdraw money. It also reduces the tension of being robbed. There is no need to carry notes with us because of ATMs, credit cards etc. Replace cash. It is safe and easy to carry. Now transactions become easy with online payment within seconds to any part of the country or world. But it requires some knowledge of using technology. In rural areas, there is often remain the problem of network. There remains the fear of being hacked if we don't follow all rules and regulations.

At last, I want to say that it has more advantages than disadvantages so the awareness should be increased so that all people take benefit of it.

Thank you.

Merits:.

When it comes to making a cashless or digital economy it doesn't only make you save a large amount of time which you could've wasted roaming around govt offices but also it is very affordable.

2. We have been seeing the transformation that has come after adopting Aadhar. How direct benefits are going to the people's Bank account and how it made the system transparent.

Demerits:

There could be online cyber frauds that are on the rise these days.

2. A large population of our country do not trust this system.

3. A large chunk of the rural population would find themselves disconnected.

All in all, we can conclude that a cashless economy is beneficial for all in this country but people should be given appropriate knowledge about how to deal with fraud. If we want to make a modern India we should adopt the current technology at the right time but at the same time we must not leave behind those who are not much digitised.