Merits and Demerits of Cashless Economy

On 8th November 2016, our honourable prime minister Shri Narendra Modi implemented demonetisation banning the use of 500 & 1000 rupee notes. With the implementation, more than 80% of the running currency became merely a piece of paper and situation became pathetic marking the rise of electronic transaction in our country.

Let us discuss some of the advantages of the cashless economy:-
1) Electronic payment will improve transparency and accountability since all the transaction will be governed by income tax hence marking a decrease in black money.

2) printing notes itself cost more than 25 billion which will be reduced.

3) security is provided over cashless transaction which is not possible in physical cash and hence reducing the chances of robbery.

4) One can view transaction history and plan his/her budget accordingly.

Some of the disadvantages are:-

India is a country with most of its population residing in rural areas and lying below the poverty line so it is very hard for them to accept changes. It is a long run for India to become a cashless economy and for that India had to first fight with poverty and illiteracy.

Good morning to one and all.

Today we are here to discuss the merits and demerits of cashless economy.

The Cashless transaction means we can pay money or can receive money without the involvement of cash, is this sounds interesting, yes it is interesting.

The cashless transaction was increased tremendously after the demonetization on 8 November 2016. Some of the advantages are.

1. Less or low involvement of cash like if I have to pay you Rs. 100 I will simply ask your paytm number and I transfer it in your account.

2. Chances of robbery or theft will be very minimal.

3. The business of companies which offer cashless transaction has boosted up like paytm, phonepe and many more in the same industry.

4. No need to stand in bank lines for hours.

5. We can purchase anything from the market without using money even nowadays a tea stall also has a board paytm accepted here.

Some of the disadvantages are.

1. Many people approx 40% of the population do not know how to do the cashless transaction.

2. Around 30% population of India is residing in rural areas they don't have mobile phones how will they receive or pay.

3. Hackers can easily hack the passwords because of which many people are in the dilemma whether it is a secure mode of payment.

In the end, I would like to say the step for digital India is a good step which will be a positive step for our economy but it will take time for making our economy as a cashless economy. And it is a safe mode of payment.

Well, 1st of all, the cashless economy means all legal transactions are to be done without physical money, so when we will adopt this system, there are following merits:

* It is the fastest way of transaction.
* No need to carry physical money with you now, so no more cases of theft, loss of money etc.
* Can do transactions even on holidays, which is something that shouldn't possible without a cashless economy.
* Can reduce the corruption, by some margin, as in some important transactions, the Money will be transferred into the bank account.

Demerits:

* 1st of all it is new system altogether so, as you know not all people have the same mindset, so it will take time to accept this system.
* This is will be easy to understand for the educated people.
*Uneducated people might be called it weird.
To conclude, I would say it is more beneficial to our country.

Before see the merits and demerits of Cashless economy first we understand what is cashless economy. Cashless economy is a such type of dispensation in which any type of financial transaction, debits, credits are done by digital process or information and not by any physical thing like coin, note.

Mainly if we will see the merits, its really reduce human efforts like that we have really not need to go to the bank for several hours and also not need to stand in queue, we can easily send and credit money just by apps in mobile, we can pay bills by this in just few minutes, we can pay shopkeepers by it, also cashless economy is really increasing digital marketing like zomato, flipkart, etc. Most important is that it reduces corruption, black money. You can send money in just 2 minutes to your family by paytm, tez, it is also a big merit.

If we will see the demerits lot of people in India are uneducated so really they do not know the process for digital transaction and also lot of people have really not have even bank accounts so they will be victimize from cashless economy. And there also a big demerit that digital money is not safe properly because of cyber attack and others internet problems. Mainly conservative peoples really refrain cashless economy due to safety problem.

Conclusion- Mainly cashless economy helps people in several manner, it reduces human efforts, black money, bribes, extortion, tax problems, but in India it should be not implemented because lot of people does not know how to use it and it have safety problems also.

Cashless money is a good concept, it has more advantages as well as disadvantages.

Advantages:

It's a self-banking process.
Self-banking process means money cannot hack by any person.
People can easily access any part of the world.
It can pay only by a card.
We can purchase things through the card.
This process will reduce the people of holding cash.
It will increase the growth of the economy.
It will benefit the peoples those who are living in village areas.
Less time for all the payments and transactions.
For eg:-fees, bills, online shopping, Etc.

Disadvantages:

Urban peoples can't easily make money by their knowledge (they should have some practice for proper usage).
This system should have proper internet facilities.
Risk has involved in this process for hackers.
Without knowing of account no the money will block.

Cashless transaction is best &better concept.

It was the safe& secure transactions without the involvement of money.

In the case of money is maybe robbing chances but nowadays we can transfer the money through our mobile phones within a fraction of seconds. It will take cashless time for doing the transaction.

Nowadays we are going to a market for buying groceries we can pay the money through the card, not with liquid money. It reduces the corruption in the country. Mainly advantages with the cashless transaction is it will save the paper. Due to cashless transaction peoples are made educated. So cashless transaction is so beneficially in urban& rural areas.

Hai.

Digital transaction: It is a seamless process which one are more participates involves, with the effect of no need of cash.

Merits:

1) By using digital payment every payment was recorded and it requires tax for transactions.
2) Increases the revenue status. Because easy mode of pay bills.
3) Empower the citizens to take their subsidy from govt directly their account.
4) Free from long queue.
5) No need to visit bank Every time.
6) No need to regular withdrawal for daily usage.
7) Safe from rubbery.
8) Saves expenditure of money for printing notes.
9) No need of mediator for transforming money.
10) Even 1rupee also transfer by digital payments. And secure.

Demerits :

1) maximum rural people are illiterate.
2) Some are don't have a bank account.
3) due to poverty some are not having minimum a/c balance. So their little amount of money will be taken as a penalty, so they are not interested.
4) Fear of cyber hacking.
5) According to the world bank, rural Indians are unable to open an account. And maintain bank balance.

Thank you, friends.

Merits of the cashless economy:

1. The consumer can do transaction easily and from anywhere.
2. It'll consume less time in making payment.
3. There will be a proper record of all the transactions in digital format.
4. Black money will be reduced.
5. Govt. Can collect tax easily.

Demerits of the cashless economy:

1. The illiterate people cannot do the transaction in electronic form and there is still a huge illiterate people in India so this can be a major problem.

2. There will also be a problem if the network is not properly working and the transaction comes to an end in midway and in this case, the money from the will be deducted and the payment will not be successful so this is also a major demerit of cashless economy.

Hello everyone!

Cashless Economy is that part of digital India which is leading to make India a developed country.

Merits of Cashless Economy:
1. Timely payment.
2. Minimised risk of theft.
3. Safer and efficient.
4. Reduced load of Banks.
5. Easy to pay even a non-rounded figure.
6. Need not to ask for a change to everyone around.

Demerits of Cashless Economy:
1. Poor services of Cellular companies.
2. Non-availability of cash in all ATM's.

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.