Merits and Demerits of Cashless Economy

Cashless Economy means using digital currency in our life especially day to day life. The cashless economy moves our economy in the growing phase. Everything has pron and cons. So here are some merits and demerits of cashless economy-.

Merits:

* Reducing the problem of cash.
* Saving trees because it reduces paper use.
* Saving time.
* Easy to use whenever people feels its requirements.
* Transparency.
* Cashback offer increases excitement among people.

Demerits:

* Illiterate and poor people finds difficulty to use.
* Need internet access.

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.

Merits:

The Cashless economy means self-banking process.
It would be a good thing to develop our self and time-saving theme.
Most of the thing banking so many people come and go the credit and debit process will be clumsy.
Self-banking means like an ownership transfer and credits.
The main problem is to avoid currency problems in atm machines to deposit money the big line is there and to spend more time, in this service is most useful.
And educate our self and improve our levels and self-dependency like that.

Demerits:

The disadvantage is all are not educated persons, that are not using this method.
One of the most problems is "Hacking".
They are own secure to the money.

Ex: once you can log in this server after completion of your work definitely log out button to click and back to the page.

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.

Minting coins or printing of paper notes require money, which is an expense for government or central bank like RBI. If a transition is done from cash to cashless transaction then there would be huge savings for the government and lead to strengthening of our currency.

It also brings transparency in transactions and disables the provision for money hoarding and tax evasion. Also since the banks have more money with them, this leads to lower rates of interest which leads to easy availability of loan and greater economic development.

The main demerits of a cashless economy is the risk involved in hacking of our personal wallets or accounts. Also there is the risk of erasure of the money records from our account in the event of war etc by powerful foreign governments which could lead to crippling of our economic systems.

Therefore in order to get the benefits of cashless economy without any drawbacks we must ensure for the safety from hacking or attacks by terrorist or foreign govenrments.

Good morning all.

A cashless economy is powerful and easy transactions.
Time-saving.
Easy process.
Urgent processing useful to the people.
No weight.

Demerits.

Not secured.
No hopeful.

According to my point of view cashless economy has both merits as well as demerits.

Merits.

1. As it can reduce the cost of printing and transportation of the cash.

2. The most important thing is that people will pay the tax as most of the people on our country didn't pay tax so by doing the economy cashless all the transactions will be through banks and other financial institutions which will help the government also.

3In a cashless economy it is easier to track the black money and illicit transactions, unlike cash-based economy in which money does not come into the banking system. In the case of digital transactions, it is easy to track and monitor suspicious transactions as all the records are available with the banks.

DEMERITS.

1. In our country more than 90 per cent there are rural people so first and the foremost thing is to change the concepts of those people then the only cashless economy mission can take a boom.

2. Most of the people in the informal sector are daily wage workers so they depend on the cash only.

3. In India, people believe less to make online transactions because of malpractices such as phishing, hacking, etc.

At last, I will conclude that please if we want our country to do progress people have to believe government and government also not to break the belief of people by bringing the best technology in our country as our country is known for the best technology Center.

Thanks a lot.

Hello everyone.

Today we are going to discuss about merits and demerits of cashless economy. With rapid innovation in technology sector, advanced methods and processes are being adopted that are make life easier. Cashless economy is such a thing where trade is done digitally unlike on paper. It is fast and more accurate but it comes with its own problems and that is what we are going to talk about.

Cashless economy has led to less paperwork involvement which can also reduce space required to handle and store the documents. Because of that access to reports and documents has also become easy because everything is just one click away. However it is prone to cyber attacks and a system has to be designed properly to make it hack-proof.

It can also be used nefarious purposes like we can take the example of Bitcoin. It is known that through Bitcoin people conduct underworld and sinister businesses online and because of the technology of bitcoin there is no way to track it. This can cause some serious problems in legal businesses of corruption is money is not traceable.

In brief, system of cashless economy should be designed in such a way that it is easily traceable and hack-proof and only it will be a trustworthy system.

Everything has its pros and cons. However, I believe that there are more advantages compared to its disadvantages. The major benefit of adopting a cashless economy will be the reduction in corruption which is the problem of almost every economy. Secondly, cashless economy will reduce the burden and cost for government to print money.

Similarly, it will reduce the risk of physical theft of money. Also, one can pay and receive money sitting at home. Banking institution do not need to transfer the whole cash vault from one place to another, as money can be transferred in single click from computer.

Today we are discussing cashless money.

Merits:

In the 21st century, the cashless payment in India is growing rapidly and also benefits to our overall development of a country because of cashless payment we can easily transfer money whenever require and also can get money from anyone no need to waste our energy and time but as we know every coin or topic has 2 sides one is positive and the negative and cashless payment also have negative because of cashless payment we don't need to stay in the queue for an hour and hour's it saves our time, energy, and also money from the thief.

Demerits:

As we know nowadays the digital crime has bosted various scams schemes running all over the internet and also our data is not safe anyone can hack our data because of our small mistake and also 50-60% of the population of India belongs from the village who don't have good internet connectivity how they can do cashless payment as the cashless payment increase the digital crime also increase if we don't keep alert ourselves.

Thank you.