Merits and Demerits of Cashless Economy

Hi everyone!

I think cashless economy has its own merits and demerits.

Merits :

A cashless economy is very beneficial for us. Because in this era of a cashless economy we can save our time. And with the help of this, we did not want to carry a huge amount of money with us for any work. And it also helps us in shopping. Because we all have apps like paytm, phonepay etc that helps us to pay easily and it also help us to recharge our phones.

Demerits :

If there are advantages of anything so obviously there is disadvantages also.

Because there is not much awareness of the cashless economy in rural areas and there is also a shortage of network connection so it is difficult for them to use a cashless economy effectively. And the main problem is hacking.

Online payment and transactions are not secured fully that's why it is the main disadvantage of a cashless economy.

Finally, the cashless economy has many advantages and disadvantages too.

Thank you.

A cashless economy is very good thing to have for a country to function properly.

Talking about the merits regarding a cashless economy then there are various good reasons for the cashless economy to work in India. The cashless economy will help the investments to grow. It will stop people from Carrying Large amounts of money with themselves to avoid getting it lost. It is a good substitute for people who often carry lots of money for business or another purpose.

The cashless economy will also motivate people to use technology as it includes using ATMs or credit cards or UPIs which will improve people's knowledge about technology.

When talking about the demerits cashless economy uses the internet to operate and that's why there are several security issues. There is a huge risk of hacking the accounts having lots of money. The cashless economy can also be a problem if not used wisely as it can be easily transferred to bad peoples including terrorist organizations through online methods so it will be responsible for the government to keep a good watch on these transactions.

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.

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,

As we all know what is cashless economy. It means all the transactions in the economy only be done through our bank account by using many apps like paytm, google pay, phone pay etc. By using this app all the transactions done through our bank, so there is no loophole for income evasion, corruption or others.

The merit of the cashless transaction - we don't need to take the burden of cash to carry, transaction going to be very secure and safe, getting a lot of offers from many apps for using online payment etc.

The demerit of the cashless economy -It is going to be very tough for the persons who are uneducated because they don't know how to use a phone or the internet for making payments.

As per my point of view, we all know what is the cashless economy. Definitely, any advancing is going to happen in our life there are some merits and demerits and we have to check it. Merits are definitely saved our time, it also prevents corruption, there is transparency in the transaction because we have the history of the transaction. But while thinking on the demerits I think there is only one. That is human error. If we are going to do online transactions then definitely we have to take attention to certain points. Then only there are only merits. And also if we are stepping up in any advancing we have to make their base like we have to make a strong network, reliable and easy to understand service, so anyone can take the opportunity of it.

Merits:

1.There is transparency in transactions.
2.There is no black money.
3.Recorded data is available.
4.No cost for printing and storage of cash.
5.There is no destruction of print currency notes.
6.faster economy.

Demerits:

1. It depends upon technical infrastructure.
2. Always need for internet connection.
3. Very hard for places that are less connective.
4. Rely on networks every time.
5. There is a chance of lose data in cashless economy.
6. Higher security is required in cyberspace.
7. Literacy and education should be 100% required.

In a cashless economy, the exchange takes place in the form of a commitment by a third party, i.e. Plastic cards, mobile banks etc. You have a commitment, but not the hard cash with you, It is with the service provider which you are using for transaction. He will allow you to use it whenever you want but own it all the time. If you are not using it, he has its possession and he can invest it to gain from it. If they use it stocks, it is used for value creation in the economy. If it is invested in bonds, the government has the liquidity to spend it in infrastructure development. In any way, the money is not going to be idle as it would be if it was in the form of cash with you.

You use the cashless commitment just like a cash. However each transaction made by you marks its footprint on whosoever has possessed it for the number of times. It gives a tool to the income tax department for all the transaction a person has done. So, accounting for his tax deliverable becomes more transparent and it becomes difficult to hide it.

The people who hold it has also an advantage of its safety, given that there is no threat to cyber hacks (which is very rare, given the security feature in the modern IT sector). Generally, the government gives the license of banking/transaction license with very tough criteria which ensure that your money is safe in their hands.

But since the government controls the financial institutions, it can limit your power to spend it in certain situations. Your spending power can be blocked if the government/judiciary finds you guilty of fraud. So in a way, your independence is lesser in the cashless scenario. Many times we hear the news of freezing the account of people/organizations in case of legal cases. Overall, the cashless economy makes the system more transparent where you as well as the government are safe, if one is legally correct.

Hi friend's

As per my point of view. the cashless economy has n number of merits and fewer demerits and nobody can deny the merits of a cashless economy First we should understand what is the cashless economy. Cashless economy means our transaction will be based on credit card, debit card, wallets, netbanking, and by using some transaction app like Phonepay, Google play, paytm and many more no need to use hard cash. It has been many days since govt of India brought the proposal to make India cashless it is an incredible idea but it is still not implemented caused may be several but measure cause is less awareness, less literacy, and less education now let me highlight the merits and demerits first.later we will explain many more.

Merits:
1. The transaction will be easy.
2. Time and energy will be saved.
3. Paperwork will be less.
4. Corruption will be less.
5. Literacy and education will increase.
6. Awareness will increase.
7. The Indian economy will grow rapidly.
8. All the transition-related work will be in my hand.
9. It will help the country to become digital and so on.

Demerits:
1. Smartphone and internet is required.
2. The network problem will increase.
3. The bank account is required.
4. Adequate awareness is required and so on.


Now, I want to share some crucial suggestion with you guys and government of India I am not denying the merits of cashless but before making the cashless economy government of India should spread awareness about an online transaction, adequate internet education still 40% of Indian don't know how to sign on paper especially the people who come from a rural area so first educate them and government should give attention to making digital India because for online transaction everywhere the internet is required. But after becoming cashless nobody needs to go bank, wait in a queue for a long time and so on.

Thank you.

Hi, one and all. I'm Shaik Ismail.

So we are discussing the cashless economy. I think most of the developed countries are now doing cashless transactions. So that we assume that if our economy is going to be cashless it will help to develop our country also. Doing transactions without cash getting confused but it will help to do work in an effective manner and complete the process smartly.

As we all know there may be some frauds behind it. But as a responsible person of society, we need to get aware of it and do it securely and safely. Everything can't be possible until we start right so do it.

Thank you!