Merits and Demerits of Cashless Economy

When 8th November 2016, When our prime minister announced that 500 and 1000 rupees notes should be banned, 86% of currency notes in India were just merely a pieces of paper. Demonetization took an unprecedented turn of trying to make India move towards a Cashless Economy.

It has major benefits like Electronic payments will help business people to boost their customer base even in different geographical locations and the real estate prices comes down as most of the real estate business happens through black money. By this way of cashless economy buying the votes by giving the cash has also reduced and it reduces the robbery and pick pocketing. Moreover It is transparent and corrupt free as IT officials can track records easily.

I would like to conclude that for a country like India it is required a transition towards a cashless economy and Government has to provide the financial literacy and Internet facilities to all its people.

Hello everyone!

I want to share my views about the merits and demerits of cashless economy. At first I think cashless economy is very advantageous. People buy anything and solve any money related problem with online mode. Here liquid cash do not need to carry. Moreover, previously we cannot carry a lot of cash money because there is lack of security. But in case of cashless money we can transact a lot of money as our wish and there is a few chances to failure. To inaugurate the cashless economy the amount of black money are significantly reduces. For this we can shopping from amazon, flip-kart, etc., any time and there are a cashback option.

But cashless economy has some demerits too. Here for transaction there need to internet connection. If the internet connection is lost, there is chance of failure of transaction. And now in cashless economy hacking is a major problem. And cashless economy facility do not go in rural area.

Cashless Economy : Merits and Demerits.

Cashless Economy is an idea brought by the government of India. In cashless economy, the transaction is done online through various apps such as Google pay, Phone pay, Paytm, etc. Being cashless has its own merits and demerits. Becoming cashless reduces income evasion, corruption and others. Also, there will be no burden of carrying cash while traveling. The cashless economy also helps us to save our valuable time. It reduces the paperwork. There are some of the international countries which are fully cashless such as Sweden, etc.

As there are demerits of everything cashless economy has its own demerits such as data can be hacked, there is low connectivity of internet in rural areas. Also, it will be more difficult for the people of rural areas. The solution to this is that the government should educate the people about digitalization and new technologies before introducing any scheme.

Good evening everyone.

Today we are talking about the merits and demerits of cashless economy. It was a great initiative was taken by our prime minister to make digital India.

Merits:

1. Reduces the cost of printing, storing and transportation of money.
2. There is no need for carrying a lot of cash.
3. The transaction of money is traceable.so there will be less corruption in the country.
4. It provides us with the transparency of work.
5. Secure transaction.
6. We can pay many kinds of bills like the transportation bill, electric bill etc. We can buy movie tickets, pay the food bill in one touch.

Demerits:

1. More than 60%of people in India come from a rural area. 25% of them are illiterate and a large percentage of people illiterate of mobile and computer.so they are not comfortable with this.
2. Security is another big reason for cashless transaction.
3. Sometimes internet speed and electric may problem some tie.

If I say about merits about cashless economy, then there are lots for the people who are living in urban areas. We can easily get transaction anywhere, we shouldn't have wait for a long time in queues, specially for railway tickets. For shopping, we should not have to carry cash, which sometimes creates a bit risky from robber and many more.

But when it comes to the people belonging in core of heart, basically in rural areas. They even didn't have proper electricity connection, they had the connection for the name sake. People use to charge their mobile in local markets at a cost of around Rs. 20 for full charge. So, What can the cashless economy make change their life.

In short, I want to say that cashless economy is benefiting only to the people who are residing in urban areas or who have proper financial knowledge. We should think about the rural people more, that how differently cashless economy could benefit them.

First of all, we understand what is a cashless economy.

So the economic term is related to money, wealth.

But cashless economy means when the transaction is not based on paper notes, coin in short the transaction is done by without cash is called cashless economy so here all transactions in the form of using digital money like bitcoin, cryptocurrency.

According to me, the cashless economy is better because it reduces corruption or illegal money also helps to reduce the risk of keeping money through oneself.

Also, it helps to speed up transactions so time reducing.

It helps people to easy access for buying or purchasing something.

It can be used everywhere no need to hold a pocket.

But it has some demerits like it has major risks like cybercrime.

Specialized skills are required so common people not understand easily this type of transaction in the market.

Illiteracy is the major problem across cashless economy.

Major benefits of cashless economy are following.

1. Make transactions efficient and transparent.
2. One can transfer money from anywhere and anytime.
3. Facilitates online shopping and online education.
4. Helps to remove black money from the Indian economy.
5. Removes the middleman and help to deposit money directly into construction workers and farmer account.

Besides benefits, the cashless economy has some demerits.

1. Hackings are increasing nowadays causing threats to money and personal information of people.

2. People who do not have internet access ability are excluded from benefits offered by cashless economy.

3. A large segment of Indian people doesn't have knowledge of the digital transaction.

Cashless economy help for the development of the country. But the government should first educate rural people on how to do the digital transaction. Otherwise, they don't get benefits offered by digital economy.

Hello everyone!

In the cashless economy, we have both merits and demerits and I would like to agree with the statements of merits and demerits give by all the above participants such as.

-we can avoid the corruption.
-we can maintain the transparency.
-we can save the lots of peoples time -.
-we can save lots of paper wastage.
-ink wastage. Etc as merits and.
-lack of knowledge to the illiterate people.
-lack of security ect.

But, still we can work out with the technology to avoid the demerits such as.

-providing the fingerprints, face recognition to avoid security problems.
-Acknowledging the rural people while they buy their smartphone like (govt was giving the training to the people who wants to learn driving and they certify by the driving test) they have to acknowledge them how we can use the smartphones and the how to use cashless economy.

So, everyone can enjoy the cashless economy happily.

Thank you.

As we are here to discuss about the topic cashless economy.

Cashless economy means the transfer of money from one person to another with the help of internet banking. Cashless economy has its own advantages and disadvantages. In India cashless economy becomes popular at the time of demonetization. At that govt of India promotes transaction with the help of internet banking because of due to lack of physical currency. From that time cashless transaction is increasing day by day.

Cashless economy is very beneficial because from this if we want yo transfer money to another person we don't need to go to bank with the help of our smartphone we can easily transfer money. And many other advantages such as robbery also decreases as cashless transactions increasing. Hoarding of black money and corruption also reduces from cashless transactions. Because govt has all the records of money which anyone transfer to other.

I would like to share some aspects about Cashless Economy. This is a great initiative arises due to digital India Campaign. The merits of Cashless Economy are:

1) Cases of money thefts are reduced and people feel more secure with their money.

2) Reduction in Tax invasion.

3) People do not have to wait in long queues for money transactions which in turn saves precious time.

4) Senior citizens do not suffer difficulties as their pensions are directly transferred to their accounts.

5) Advancement in Technology as more and more robust apps (such as Tez, Phone-pay) are developed for transactions.

6) Paper and printing ink is saved.

As every coin has two faces, similarly for cashless economy demerits are:.

1) Only urban society make full use of cashless economy as they know how to use different apps while rural societies face problem in transactions.

2) high risk of data privacy.

3) Credit card fraud.