Merits and Demerits of Cashless Economy

Hello everyone.

In my opinion, going forward to a cashless economy is the right step for the future. It basically means the digitilization of cash. Like every other system out there in the world, even this has its own merits and demerits. It provides a safer method of transaction through secured banking. In the times of covid it also helps in contactless transactions. Digitalized banking opens the door at home services where an individual need not wait at long queues and spend his/her entire day in the bank. Most of the local vendor nowadays are shifting towards cashless transactions which in turn helps them to keep a legitimate, safe and a reliable method to track their incomes.

Despite its merits, there is one big problem right now which will be eventually sorted out in the future is to reach of the program. Not many people are aware or know how to run online banking websites. Many banking sites don't have a very easy user interface which makes online banking a hectic and time consuming process. Although online banking exists there are some processes which require human verification hence we can say that it isn't completley digitalized.

Hello everyone,

According to my point of view, it is safe and secure for all transactions. But as every coin have two sides, so most of the rural people were not having more awareness about the cashless economy so the government should take a step to give some awareness.

Hi.

Thanks for giving me the opportunity to speak on this topic. There are some merits and demerits of cashless economy.

I think, cashless is a easiest way to spend money everywhere because as we all know, all systems are digital. In digital world we all carry Android mobile phone. So, everywhere we pay money by only one click (no problems for cash, change money) and it is also less time taking for paying money. It is very simplest way to pay money.

Problems is that, for cashless economy is; the person who belongs to the rural area they don't have cellphones, they don't have knowledge about how to pay online money. I think in India this is very serious problems. They only able to pay money by cash.

Thank you.

Hello everyone.

I would like to explain about demerits of online transaction, now a days the online transaction is a very common mode of transaction that everyone having phone pay, google pay, Paytm etc and they are very safe and secured to use, but that apps need internet connection, and in somewhere it is unsecure because, now a days the hackers what they are doing means, they will send a common link through that they access your phone, and they will get all the permission needed to hack the apps through that they hack account and all information, people easily come under their intension, and another one is the uneducated people like former's, worker's they don't know how to operate it, because of that India still in the initial stage of cashless India.

Thank you.

This topic is very good. Because cashless economy is very very beneficial in today's life. Cashless economy has both merits and demerits.

(Merits) :
In this timeless life our life is very busy in the work and students are busy in there study. So they have no time to stand in line and do all works by going in market. But by cashless economy all works we are doing by phone or computer by phone pay and paytm app. And cashless economy is also useful to send money to whom who are live out of station.

(Demerits) :

Demerits of cashless economy is defined as increase in unemployment. And main problem of cashless economy is that people stored there money in phone and give security to that so this is very riske because many hacker hack your security and stole your money.

So, there are many demerits and merits cashless economy. So, the person who use cashless economy system then use it safely.

Thankyou.

Merits:

1. There are many benefits of a cashless economy. I will talk in favor of it. The importance of cashless transactions has grown from the demonetization phase. Nowadays, people preferred cashless transactions because there can be an announcement at any time that after 12'O clock certain notes will be banned.

2. In Cashless transactions you don't have to go anywhere you can make payments even from your home at any time. It saves time. Cashless transactions are faster.

3. The cashless economy will reduce corruption. Every transaction would be on record so this will make any process transparent and smoother.

4. With the cashless economy, people will open more bank accounts as it is needed for doing cashless transactions. So it is beneficial for the country's economy.

Demerits:

1. People in a rural area or older people don't have knowledge of doing cashless transactions.

2. There are chances of hacking or fraud by asking OTP through fake calls.

The cashless economy needs the internet. Without the internet, the cashless economy is failing.

In the modern e, cashless transactions are widely increasing day by day. It has become a trend to do cashless transactions as it is a convenient method and source of doing transactions. Basically cashless economy means in which transactions are done mainly through online banking net banking from various apps like paytm, phonepe etc. While doing net banking there is a need for high-speed internet which results into a saving of time and energy.

MERITS OF CASHLESS ECONOMY:

1. Corruption and black money will be reduced because there will be proof of each and every transaction.
2. Time and energy will be reduced.
3. There is no need to take the burden of carrying money with ourselves.
4. There is no need to stand in a long queue.
5. It will help in bringing transparency in the economy rather than an increase in unacceptable and illegal activities.
6. Paperwork has reduced.

DEMERITS OF CASHLESS ECONOMY:

1. It is convenient for those who are educated and known to the internet.
2. It depends upon technical infrastructure.

Hi everyone,

Merits.

1. No fear of stolen money.
2. Save paper and trees.
3. Black money can reduce.
4. We can transfer money from anywhere.

DEMERITS.

1. It needs internet.
2. Only educated peoples can use.
3. Lot of hacking problems.
4. It losses money jobs who are working under banking sector like ATM Feeder, securities, money deposit vehicle drivers.

The cashless economy has brought a revolution in financial and economical fields. It has proved beneficial in many ways but also has become a hindrance for many.

Merits:

1. Anytime and anywhere possibility of monetary transactions.
2. Much safer and quicker.
3. Useful in emergency.
4. Effective growth and advancement in technology.
5. Risks of fraud and theft have been reduced.

Demerits:

1. As India have lower literacy rate, many people face problems in understanding the system.
2. Risk of hacking has become prone As details are mentioned.
3. Technical problems can be faced in some cases.
4. Complicated to understand.

The cashless economy has definitely changed the vision of people. A person becomes self-reliant and saves lot of time, energy and work.

For every topic there consists some pro's as well cons. So now we are going discuss about some pros of a cashless economy.

Nowadays all are familiar with digital transactions over through internet, it's a traditional way for this generation. We can also say that it is one-way development of our country, now everything is made online like glossaries, shopping, tech market, online food, also in small-scale businesses too. Indirectly all people are familiar with digitalization.

By this day by day technology increases and also provides jobs for job seekers, online transactions reduce the risk of theft of someone's property, "secured record is more beneficial than a piece of paper".

Now coming to the cons of a cashless economy, in our country, not all acquire an education. Literacy of India is somewhat low compares to all countries, some rural people may not be familiar with digitalization. They are at the exchange of currency. In order to keep looking after all these issues cashless economy fails in some places. This is all about my perception if it is any fault try to excuse me. Thank you.