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.

Well, 1st of all, the cashless economy means all legal transactions are to be done without physical money, so when we will adopt this system, there are following merits:

* It is the fastest way of transaction.
* No need to carry physical money with you now, so no more cases of theft, loss of money etc.
* Can do transactions even on holidays, which is something that shouldn't possible without a cashless economy.
* Can reduce the corruption, by some margin, as in some important transactions, the Money will be transferred into the bank account.

Demerits:

* 1st of all it is new system altogether so, as you know not all people have the same mindset, so it will take time to accept this system.
* This is will be easy to understand for the educated people.
*Uneducated people might be called it weird.
To conclude, I would say it is more beneficial to our country.

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.

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.

Cashless money is a good concept, it has more advantages as well as disadvantages:

Advantages:

It's a self-banking process.
Self-banking process means money cannot hack by any person.
People can easily access any part of the world.
It can pay only by a card.
We can purchase things through the card.
This process will reduce the people of holding cash.
It will increase the growth of the economy.
It will benefit the peoples those who are living in village areas.
Less time for all the payments and transactions.
For eg:-fees, bills, online shopping. Etc.

Disadvantages:

Urban peoples can't easily make money by their knowledge (they should have some practice for proper usage).
This system should have proper internet facilities.
Risk has involved in this process for hackers.
Without knowing of account no the money will block.

Merits:

The Cashless economy means self-banking process.
It would be a good thing to develop our self and time-saving theme.
Most of the thing banking so many people come and go the credit and debit process will be clumsy.
Self-banking means like an ownership transfer and credits.
The main problem is to avoid currency problems in atm machines to deposit money the big line is there and to spend more time, in this service is most useful.
And educate our self and improve our levels and self-dependency like that.

Demerits:

The disadvantage is all are not educated persons, that are not using this method.
One of the most problems is "Hacking".
They are own secure to the money.

Ex: once you can log in this server after completion of your work definitely log out button to click and back to the page.

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.

The cashless economy has its own merits and demerits.

If we discuss merits.

India is populated country every government office and banks are always crowded in order to complete the required task you have to waste some of your working hours and have to stand in queue doing nothing hence cashless economy makes every transaction easy.

And coming to demerits.

India is a country with more no. Of villages where most people are illiterates or unaware of cashless payments because of which they are not ready to go cashless.

Hence before making India as the cashless economy, it's the duty of government to implement it in a good manner.

In my point of view, India is not ready to go cashless because of poverty and unemployment. These are the two barriers which are creating a problem to go cashless. First of all, we have to work on this then we can go cashless. In India, many people have no money to buy an android phone because of this they are unable to make payment. And second, in India, many people have no basic education because of this they have no knowledge of how to operate a phone. At the time of demonetisation, many big companies went to door to door and told them about the benefit of the cashless economy. They also gave them cashback benefit which motivates the consumer to deal without money. One negative point is that many people have the perception that cashless transaction is not a safe way to make payment. The government did a lot of things to promote the cashless economy. They should find out some different ideas to promote the cashless economy. If the government remove all the negative point of the cashless economy then people will adopt it.

Merits:
1. No need to stand in a queue.
2. Easy to transfer money one account to another all over the world.
3. 2 way authentication made it very secure.
4. Time Saving.

Demerits:
1. it is effortless, making people lazy.
2. Chances of failure due to the low-speed internet.
3. Take time to refund when transaction declined.
4. it is not for everyone.
5. not useful everywhere.