Merits and Demerits of Cashless Economy

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.

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.

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.

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.

In my opinion, the Cashless Economy is a main economic future of any developing country.

As soon as possible we achieve it we become developed. Many hurdles come in our ways to adopt a cashless economy but good effort makes it possible.

In future cashless economy will become time demand.

Demerit -.

Low technology infrastructures and illiteracy rates discourage us for a cashless economy.

Less Knowledge about the financial aspect is low in society one major demerit of cashless economy.

We have lots of merits which we can't deny, just because of a cashless economy we are able to do any kind of transaction to anywhere on fingertips. People even wouldn't think that instead of making a long line of the queue in the bank for long hours they will do this kind of thing from where they are and in a very easy way which helps to save our energy as well as time which is very important these days.

So what should we have to do these kinds of transaction firstly everyone should their own ATM card, or debit card so that we can easily transfer money through google pay, phone pe, paytm aap directly to any other account if we have good internet connection as we are the user we all know how much it is useful if we have just phone in my pocket it means we have everything like we can buy any product pay to anyone whosever we need to pay. We can also do card payment directly through debit or credit cards.

So it is a good initiative taken by the government, if we have all the availability then it is one of the ways to make India digital as well as cashless. In fact, in this ways we have all the records of every transaction so there may be no chance of black money we if using this mode of transaction.

And it would only happen if we have all the facilities and awareness but due to lack of proper awareness people are not using this facility in rural areas and they don't know how to use it first it would happen if everyone has a smartphone and proper internet connection government need to focus on this matter at ground level too because those who are not educated they face difficulties even fraud people easily make them fool too so government Should aware and tell them about every aspect as it easily transferable anyone embezzle them from within a sec without of their knowing.

There are lots of fraud people sitting everywhere to make them fool through fake phone call and they take all the details and but nowadays they just send one OTP and take that otp via call and money easily credited to that fraud's account, and we can't do anything.

So it is totally up to ourselves how to keep alert and spread awareness about each pros and cons of cashless economy before using it.

Cashless means a credit card, debit cards which mean a holder can use this cards if they mobile within a second transaction can be done by using apps like phonepay, Google pay, patym made transactions so simple within seconds work can completed. Carrying a huge amount of money with us a big headache because of theifs and we feel burden and we also become panic so by this cashless we feel better no tensions. Cashless made human being things so easy, we can do our shopping easily, from one place to another place we can send money by using applications and we can order any things, we cannot stand Infront ATMs or bank for long hours this cashless made easy for this kind problems. Cashless are spiking day by day. All this are things are useful to people who know about mobiles operation it means educated people will know a lot. Where as coming to the demerits, people from rural areas they have to stand in front banks to get money from banks, governments as to take so measures to get awareness in people, and hacking is also a problem for this it need good internet connection without that we cannot use it.

CASHLESS in other words means digitalisation. Digitalization is one of the primary motives of the government today.

Everything on earth has merits and demerits. In one hand, digitalization ensures security, ease of transactions, reduction in threats, volatility and stress-free businesses. There are umpty number of platforms that provide digitalized transactions and can help in easy movement of money without much prerequisites. With these in hand, there should not be any requirement of maintaining a bank passbook, visiting your broker often to check the balance etc.

On the other hand, despite the large database of the internet, only about 530 million of the Indian population had access to the internet in 2018-19. And most of the people who live in villages are not aware of how the digitalized world works.

Cashless economy has most of it's effect on the younger generation as they are more prone to such technological revolutions.

A cashless economy becomes a great step towards digitalization when people are aware of basic knowledge and requirements.

Merit :

Cashless economy is very useful during this lockdown situation.
It's very help full to avoid cobid 19.
Low corruption.
Low risk to thief.

Demerits :

It's required internet connection so it's not possible in all area and village.
High risk by hacking our data.
Required high security by banking application.

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.