Merits and Demerits of Cashless Economy

The cashless economy will help India to move from developing zone to a developed country.

Advantages:

1. With cashless economy people don't have to waste their time in the long queues, in the bank, waiting for the required transaction to be done.

2. There will be no need to carry money to any place and hence there will be no risk of theft.

3. The problem of change that exists for every now and then can be eliminated by the cashless economy.

4. Corruption can also be reduced to some extent because all the transactions details will get stored in a database and there will be no risk of losing data because of having many backups.

5. Criminal activities will also get reduced.

6. The cashless economy will make India paperless economy and hence there will be a reduction in the usage of paper. This will, in turn, reduce deforestation.

7. The transaction can be done to any account at any place and at any time.

8. Nowadays whenever banks are closed or ATMs are closed people face lot of problems but if it is cashless economy this kind of problems will be completely eliminated as the transaction can be done sitting at home.

9. It has made the shopping go easy as there is no need to carry money to every shop.

10. At any time and at any place we cannot run short of money as cashless economy means carrying account along with ourselves.

11. Are precious time will not be wasted anymore and we don't have to be physically present anywhere during the transactions.

Therefore cashless economy is needed to make India a developed country and rural people should also be educated about how to access new apps that are useful for the transaction.

Merits:

* Avoids cutting down of trees hence preserves deforestation.
* People don't need to stand in a queue and wait as time is crucial for every person.
*Transaction time is less.
*No biasing, transparency in the transaction.
*No physical presence is needed.
*Transaction can be seen online no need of paper.
*No need to carry a huge amount of money every time.
*Corruption can be reduced.
*Theft is reduced.

Demerits:

*Rural people may not be able to use cashless memory.
*Network problem can arise.
*Refunding money can be difficult.

Good morning/ evening everyone.

I want to share my views about the merits and demerits of a cashless economy. Before telling about the merits and the demerits of the cashless economy we need to understand what the cashless economy actually means. As we know with the advancement of the technology we produced some invaluable systems which are helpful to human beings particularly after the invention of the "Internet" the economic system took a drastic change as we are moving from the cash liquidity to cashless economy by making everything digitalize. Following are pro of the cashless economy:

(1) with the help of cashless initiate, we are able to acquire all services like the ones which we would have not imagined before as we don't need to wait in queues in banks as we can do transitions without the hassle.

(2) The cashless economy saves our important time.

(3) the system of sending the money from one bank to another bank is easy to use.

With the day-by-day digitalization of the country, I believe it is an important step to go digital when it comes to using cash. Every new strategy has some advantages as well as some disadvantages, when talking about a cashless economy I believe the ways in which it has benefitted the people is more vast than its disadvantages.

Going cashless has made it easy for people to use their cash, they don't need to run to their nearest bank for money, and we can use it whenever and wherever we want. The amount of thefts that occur has also been removed. Though there are chances for online thefts that occur only when we are not attentive. Thus I believe going cashless is the right step that is needed for the betterment of the country as well as for the people.

There are a lot of benefits of a cashless economy:

* It reduces the chance of theft & the problem of storage.
* Reduces black money in the market And fake currency by State and non-state actors.
* Better tax compliance and collection.
* Easy to control liquidity in the market.
* Reduces the cost of making currency.
* Environmental sustainable because most of the trees are being cut to make paper currency.
* Enhances habits of savings and investment.

Demerits:

* Cyber fraud like account hacking.
* Privacy issues.
* More vulnerable to international shocks.
* Lot of electricity required to make digital currency.
* Lots of pollution because of electricity production by conventional resources.
* Way forward -.
* Cyber security should be strengthened.
* Electricity from renewal resources.
* Technology improvement to make energy efficient currency.

On 8th November 2016, our honourable prime minister Shri Narendra Modi implemented demonetisation banning the use of 500 & 1000 rupee notes. With the implementation, more than 80% of the running currency became merely a piece of paper and situation became pathetic marking the rise of electronic transaction in our country.

Let us discuss some of the advantages of the cashless economy:-
1) Electronic payment will improve transparency and accountability since all the transaction will be governed by income tax hence marking a decrease in black money.

2) printing notes itself cost more than 25 billion which will be reduced.

3) security is provided over cashless transaction which is not possible in physical cash and hence reducing the chances of robbery.

4) One can view transaction history and plan his/her budget accordingly.

Some of the disadvantages are:-

India is a country with most of its population residing in rural areas and lying below the poverty line so it is very hard for them to accept changes. It is a long run for India to become a cashless economy and for that India had to first fight with poverty and illiteracy.

Hello everyone,

The Cashless economy means an economy or market without cash or cash flow in the market. And use some alternative methods for transaction of money. So it means to use an online platform like a Paytm, phonepe and google pay etc. To transaction of money. It have both pros and cons.

The cashless economy provides us more viable and flexible system of money transaction. Now we don't need to stand in long lines in banks, so it saves both time and energy of a person. By using online methods all the things can be done by using mobile, so now we don't need to carry cash with us always. Now just by one click, we can complete all our essential task at any palace. It also decreases the corruption in our country, because now any many government schemes, people are getting their money directly in their account, rather than to take less money from middle people in the system. Digital platform make peoples life more flexible and easier.

Every good thing has some default, so here are also some issue to implement this scheme in our country where most of the people live in rural areas. And people are not aware of the digital or online transaction. We need to aware those people about frauds making by some unsocial people. And there is also the chance of hacking in the online system. So we need to ensure our security system more robust and viable to use these online platforms.

So in the final, I would like to say that it is good to adopt cashless economy for our country, so that we can complete our all task without any difficulty and with save of time and energy. What we need is just some efforts to aware people about the cashless economy and governments effort towards the security of its citizen's account.

Thank you.

GoodMorning Everyone,

Merit:

1. No need to take your wallet.
2. Transaction the amount in one click.
3. Paperless work.
4. Secure, safe and directly go to your bank accounts.

With these benefits, people will do more transaction even a small transaction. No need to give the change rupees where change rupees (small coin) is always a shortage in India.

Many companies such as paytm, phonepay, Google UPI, Amazon is looking forward and supporting the cashless economy.

Demerit:

1. Easy to someone to do fraud if personal data is sharing such as UPI password.
2. Many people are not aware of digital payment and afraid to do payment mainly in a rural area, senior citizens.

Conclusion: There is always a merits to connect with digital because it saves time and time is money.

THANKYOU.

Good morning to one and all.

Today we are here to discuss the merits and demerits of cashless economy.

The Cashless transaction means we can pay money or can receive money without the involvement of cash, is this sounds interesting, yes it is interesting.

The cashless transaction was increased tremendously after the demonetization on 8 November 2016. Some of the advantages are.

1. Less or low involvement of cash like if I have to pay you Rs. 100 I will simply ask your paytm number and I transfer it in your account.

2. Chances of robbery or theft will be very minimal.

3. The business of companies which offer cashless transaction has boosted up like paytm, phonepe and many more in the same industry.

4. No need to stand in bank lines for hours.

5. We can purchase anything from the market without using money even nowadays a tea stall also has a board paytm accepted here.

Some of the disadvantages are.

1. Many people approx 40% of the population do not know how to do the cashless transaction.

2. Around 30% population of India is residing in rural areas they don't have mobile phones how will they receive or pay.

3. Hackers can easily hack the passwords because of which many people are in the dilemma whether it is a secure mode of payment.

In the end, I would like to say the step for digital India is a good step which will be a positive step for our economy but it will take time for making our economy as a cashless economy. And it is a safe mode of payment.

Good evening everyone.

As we know that situation, more specifically of we take the example of a coin, it has two parts - head and tail, likewise every situation has two phases.

So moving towards the topic:

The advantages of the cashless economy are that nowadays the people who know how to use it can pay, can transfer money from one bank account to another as this service is valid 24 * 7 by there UPI accounts. There are various apps introduced like paytm, Google pay, pay pal which help us to pay from sitting in the home and is helpful outside our premises too like if we went out and we don't have cash with us and any of these facilities are provided then we can pay easily and its totally safe, we can even have the list of our future, past, present transactions and mainly we don't have to go to the banks and stand in a queue for a transactions. Now moving towards the demerits - these above-mentioned advantages are only possible if a person is techno-friendly like in rural area many people don't know how to use a mobile phone basically it refers to our past generations who are not so much open towards these technologies so cashless economy here is a failure and its useless in the area where people have no income source or where they can't afford a mobile phone.