Merits and Demerits of Cashless Economy

The meaning of cashless economy is a country with least corruption and these are linked vice versa.

If you ask how? Then I would say, cashless economy means transparency in the system and everywhere, and where there comes transparency, the corruption would no more find its way there.

Some facts that I would like to put up in India has 2% cashless economy whereas Singapore has 61%. If you compare the corruption level in Singapore and India it will surely reflect the reason why Singapore has the 61% economy to be cashless.

Besides other advantages, such as being real time, saving paper, saving money printing papers at RBI,

Saves time provides a full proof of the payment, the cashless economy is also suffering from achieving its target. Some of the reasons are, old people still find it satisfying paying cash. Also, vegetable vendors and other road shops who are mostly illiterate hardly know and hence they don't trust on these things.

Besides, due to some internet problem causing transaction done but not credited to others account also creats an atmosphere of dissatisfaction between customer and the shopkeeper.

A cashless economy is one of the major outcomes of digitalization. By the time, our honorable PM Shri. Narendra Modi Ji raises the slogan of " Digital India", the cashless economy is in great use.

It is of huge advantage as it first reduces the chances of robbery. In spite of this, it is a way easier as it doesn't require any extra activity to handle and just by one single click, one can transfer money, request money to and from others respectively. The cashless economy also provide a way to shop, pay bills, order food just by simply sitting at home.

"Every coin has two sides".

Likewise, every single thing has two phases i.e., positive and negative.

Demerits of going cashless include cybercrime. As a number of cybercrimes are going on in our country, and if any such crime happens regarding a person's economy then it can strike the person inside out.

Also, the cashless economy has a demerit such as transfer money up to a certain limit. There is a predefined limit assigned to it.

Thank you.

Hey guys, in my opinion, cashless economy is good. Because nowadays there are many robbery activities are carried due to cash in hand. I honor our prime minister for this wonderful idea that has been initiated in India. The cashless economy makes the transaction very easier than before just one click transfer amount from the own place. There is no need of taking cash in the pocket or wallets. We can pay the expenses with the help of ATM cards credit cards which will be more convenient for the people.

"The coin will have its two faces". If there is a merit and then there will be a demerits also,

Even though the cashless economy is good but there are some drawbacks. Without network facility we cannot make a cashless transaction. Then there is trouble with the uneducated people by using the cashless transactions.

Hello everyone.

Today our topic is merits and demerits of cashless economy. As we know every coin has two aspects positive as well as negative aspect. But point is that which one is more. So here, in my opinion, positive aspects are more than a negative one. A want to clarify some of them. Cashless economy is safe as there is no fear of fake currency. And no fear of stealing. We can any payment in one click and in no time. And nowadays it is ideal because we are facing a big problem of Coronavirus which is contagious so we should also promote cashless transaction. And by cashless economy we can save papers and by Saving paper we can save trees and our environment. So, it is safe and it is good. Thanks to all.

Hello everyone.

I am Akash.

Cashless Economy comes under the Digital India incentive taken by the Indian government in July 2015.

It is a double-edged sword. I firmly believe it has more pros than cons. I would like to mention a few positives about it:

1. It made transactions more transparent. This will significantly reduce corruption. It will bring down the level of black money accumulated.
2. Transaction has become fast. No more worry to maintain hard cash.
3. It reduces the theft of physical cash.
4. Now it is harder for someone to evade tax as all transaction is being recorded.
5. E-ticketing of railways, cinema halls, aviation service and many more. Prior to cashless Economy people had to stand in a long queue to get their tickets.

Cashless Economy still has many flaws in it like Cyber Fraud, Inconvenience caused during transaction due to internet disruption, etc. The government needs to resolve these issues as soon as possible. It needs to aware Rural people about cashless economy. It should frame stringent laws against cyber fraud.

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-.

1. It is easy to send money without carrying cash.

2. There is no fear to steel it.

3. All over the world you can send or receive money in a few seconds.

4. Use of cash less economy, paper and trees will be safe.

Demerits-.

1. Without the internet, a cashless economy no of use.

2. Afraid of hackers.

3. It is no use of an unadulterated person.

4. Without a mobile phone/laptop/computer it is not possible.

These are merits and demerits of cashless economy.

Everything comes with cons and pros. Because of reference frame of ours.

Merits:

I will say that it wipes help in saving the environment because of the less paperless sacrifice of trees.

Also, there will be less flow of money in the market.

Black money-related problems would be solved.

More money in the market leads to inflation.

Demerits:

Many Indians don't know the digital ways so it will be difficult for them.

More than half of our population is poor or below the middle class. They earn the day they spend. They don't want to go to the bank and give money of small amount that they need for day to day requirements.

Hello everyone,

Merits:
1) An individual does not need to carry cash with him or her everywhere.
2) It will reduce the chance of theft from the wallet.
3) Give freedom from the problem of change when the transaction is of the odd amount.
4)Transfer of money between virtual accounts usually takes less time.No need to stand in a queue at banks.
5) The advantage of cashless is that it is easier to track illegal transactions.
6) Since all transaction will be done through organised channels that is through banks and financial institutions. So, No businessman can evade taxes.
7) Cashless transactions would stop the operation of such businesses like prostitution, drug trafficking, terrorist financing, money laundering and election funding.

Demerits:
1) The small retailers in India deal only in cash and have not been able to invest in the digital infrastructure.
2)The biggest disadvantage of the cashless economy is that not everybody has the knowledge of doing digital transactions and hence its reach is limited to urban.
3) People having half knowledge of digital payments are exposed to cyber fraud and losing their hard earned money to online scam and hacking of bank accounts.
4) Digital mode of payments like the credit card, wallet payments, internet banking involves some transactions fee which is not the case with cash transactions .

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.