Merits and Demerits of Cashless Economy

Before see the merits and demerits of Cashless economy first we understand what is cashless economy. Cashless economy is a such type of dispensation in which any type of financial transaction, debits, credits are done by digital process or information and not by any physical thing like coin, note.

Mainly if we will see the merits, its really reduce human efforts like that we have really not need to go to the bank for several hours and also not need to stand in queue, we can easily send and credit money just by apps in mobile, we can pay bills by this in just few minutes, we can pay shopkeepers by it, also cashless economy is really increasing digital marketing like zomato, flipkart, etc. Most important is that it reduces corruption, black money. You can send money in just 2 minutes to your family by paytm, tez, it is also a big merit.

If we will see the demerits lot of people in India are uneducated so really they do not know the process for digital transaction and also lot of people have really not have even bank accounts so they will be victimize from cashless economy. And there also a big demerit that digital money is not safe properly because of cyber attack and others internet problems. Mainly conservative peoples really refrain cashless economy due to safety problem.

Conclusion- Mainly cashless economy helps people in several manner, it reduces human efforts, black money, bribes, extortion, tax problems, but in India it should be not implemented because lot of people does not know how to use it and it have safety problems also.

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.

Today we are going to discuss on the topic "cashless economy" which is very fascinating topic which we have to discuss upon.

So Let's start.

Cashless economy means where the economy is digitalized. It is especially coined by our prime minister ahead with its plan to Demonetize the currency note of rupee 500 and 1000.

As we all know every initiative have it's own pons and cons so as the cashless economy has.

Now, I am discussing the merits of it.

1) Now don't have to stand in queue for a long time in banks for small transactions.
2) Now we don't have to walk with a lot of money to purchase something.
3) You can also pay your electricity bill or water bill or any bill through online you do not need to go anywhere.
4) It also helps on our GDP. Which is more important?
5) Black money is totally obsolete because no involvement of the third person is there.

Now comes for demerits.

1) Most of the small cities and villages oblivion of the country.
2) remote areas don't have proper knowledge on how to handle online transactions.
3) Most of the rural areas don't access the internet because of network problems.
4) Most of the people worried about security for cashing transactions.
5) Refunding the money also takes much time.

From my point of view, the cashless economy has both merits and demerit. But I am with merits because they are in the majority and also very helpful. Because it saves time. And time is so important nowadays.

THANK YOU !

I believe the cashless economy has both merits and demerits. First, coming to merits,

1. Cashless economy is risk-free. Anyone can steal your physical money. With the advent of a cashless economy, even if someone steals your credit/debit card, you can block the card and your money is safe.

2. If everything is cashless, there is no need to print physical money.

3. Tax payment can't be skipped. With the advancement of technology, especially with data analytics, the Government can have an authentic database of transactions done by citizens. If every transaction is cashless, there is no chance to skip tax payment, subsequently reducing the black money.

4. With just a click, you can transfer funds. It saves time and we longer need to wait in long question.

Demerits.

1. 74% is the literacy rate of India. It means 74 among 100 can read and write. Digital literacy is even lesser in India. Before introducing a cashless economy, the government should teach the people how to go cashless through campaigns.

2. Internet connectivity is poor in rural areas. We live in a nation where 60% area is rural. It is important to improve the connectivity prior to going cashless.

3. Not everyone can afford an android. Even though 84 out of 100 in India have mobile phones, the government should provide subsidies for androids.

4. People in India are connected to the usage of physical money. Initially, there can be set back and people may reject the idea of cashless economy.

Cashless economy means where the economy is digitalized. Cashless economy specially in India is a term coined by our PM went ahead with its plans to demonetize currency notes of Rs 500 and Rs 1000. There is some good things associated with this.

Like I) people especially older persons or women do not need to go market with cash which can be theft. They can easily buy something at home without any physical activity.

II) for a person with a child, to save time for their child they do need to go to market, to pay the electric bill or any other things. They can do it at home.

III) when you go to the market you not only spend the money for those particular items but also you have to pay the transportation. But after this, you need not go to outside or pay transportation charge.

IV) when we talk about cashless there is a term that PM Yojanas for farmers, low-income persons. They can not get their total money because brokers do not give them what they deserve. Due to a cashless economy, every person should have a bank account, so the money will be transferred to their account directly.

V) there will be no black money-related issues.

Demerits: As we know India is a developing country and a large number of people do not know about technology. Without money their life becomes complex. What they have to do, how to start, these things make them depressed.

If midnight we need emergencies like medicine or something we should have money. Etc.

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.

MERITS:

1. Digital Economy is a boon for India's economy with a view that it makes transactions more efficient and transparent.

2. In the world of Globalisation, Adaptability to the digital world brings new opportunities for startups and technological efficacy.

3. Subscribing to online courses via cashless transaction brings up-gradation in knowledge and skills at any corner of the world.

4. Long-distance money redressals through smartphone is another merit of cashless economy.

5. In Remote areas, with no sign of ATM's or Bank's, the cashless economy is a lifeline.

6. Even a heavy amount of transactions are made possible through instant bank verification, which makes the process more secured enough.

DEMERITS:

1. Cashless economy is a curse for people having zero understanding about digital world especially Rural uneducated class.

2. The factor of Security is a major deal when performing cashless transactions, cases of fraud and bribery may arise.

3. Practically, Not everyone carries smartphone today, thus this brings an urgency for cash-based monopoly.

4. Govt. Of India's plan to digitise every corner of the nation is still in the long run unless every citizen is made aware about the fundamentals of Digital economy.

5. Direct Bank to Bank transfers via phones makes compulsory for Banks to scrutinize their privacy policy and uphold the sense of confidence among people to use cashless economy without fear.

Good evening everyone.

Today I am going to present my views regarding the topic. Cashless economy.

So first of all, we will see that what is cashless economy.

So it is a mode of payment with using the paper cash or physical currency or it is a digital transaction of money.

I think cashless economy is our step towards the progress as we know that world is progressing day by day and our world has already developed so much. So in this era of progress cashless economy is a good initiative. As we are seeing that.

All the developed countries using cashless economy. As everything has pros and cons. So it too have cons as well as pros.

Advantage.

1. This mode of payment is less time consuming.

2. It will reduce theft.

3. It will reduce corruption and black money.

4. It will also stop counterfeit money.

5. It will reduce the expenses on printing and carrying of physical currency as every year 500crore something ruppes expend on transport and security to carry the physical money from RBI to various banks. It will also reduce the deforestation.

6. People have not to carry huge amount of cash with them. So is reduce robbery as well.

Disadvantages.

1. This mode of payment is useless for illiterate population.

2 old age people have to depend on young people for payment.

3. For country like India where large no of people are still not educated it become difficult to use it.

4. Cyber crime.

Good morning everyone.

My name is Jeevan.

The cashless economy has changed the path of our country, economic situations of the country.

The best outcome of implementing cashless economy is.

- transparency & anti-corruption.
- elevation of the standard of India on the international stage as a digitally developed country.

I Am extremely joyful with these as an Indian,

As we all know that India is one of the most populous countries and also the country villages, here two main things come into our consideration.

- Unemployment and the second thing is.
- illiteracy.

Coming to;

1) UN EMPLOYMENT: although there is a slight reduction in the unemployment with the cashless economy there is a more chance of employment if the illiteracy rate can be reduced and pushed into the learning of computer and its programming knowledge.

2) ILLITERACY: though 80-90 % of the present generation is studying, out of the 70% are completely unaware of the process, techniques and benefit of the cashless economy and slow injection of the cashless transactions into their daily life transactions, showing them the benefits of the cashless transactions and bringing awareness can only make this possible.

Hence I conclude that a successful noble and strong development and rise of the standard can only be achieved if the whole mechanises, supports and involves it.

Let's hope for a better India.

Thank you.

Hi everyone.

In my view, cashless economy is a most worthly thing today.

Merits of it include:

- accurate measurement of money in terms of huge amount to being measured. It helps many of us who forgets money at home when we go outside or even if we don't have money in our pocket but in our bank accounts, the cashless way will help us by the available amount in our hands at any time & anywhere. It also protects us from thieves from stealing money as it is riskier because there might be fighting between us and thieves just because of money.

A cashless economy helps the government by giving a calculation of each rupee and avoids the storage of money as like black money which avoids any malpractice related to money.

As a coin has two sides, this concept also has demerits:

Detailed information must be needed to one who has to do cashless or online mode money transaction.

One wrong key will get someone in huge loss Of money.

Deep care must be taken in order to do online transaction i.e. beneficiaries whole information is required.

Password or OTP for this process must be kept secure otherwise it may lead to loss of money.

Sometimes network issue arises in rural areas as it leads to going transactions in pending mode and we have to wait for it to clear the same.

The allover cashless economy will best initiative, troubleless effortless, but with some precautions.