Merits and Demerits of Cashless Economy

The Cashless economy is the great discovery in our civilization. By this technique, we can do business with the help of the internet. The consumers can buy any products at a reasonable price. But it has the disadvantage. The rural areas has not the facility of internet connection and the people are not so up to date. The hackers can collect the all the information of consumers if he or she has not the proper antivirus software.

This topic is very good. Because cashless economy is very very beneficial in today's life. Cashless economy has both merits and demerits.

(Merits) :
In this timeless life our life is very busy in the work and students are busy in there study. So they have no time to stand in line and do all works by going in market. But by cashless economy all works we are doing by phone or computer by phone pay and paytm app. And cashless economy is also useful to send money to whom who are live out of station.

(Demerits) :

Demerits of cashless economy is defined as increase in unemployment. And main problem of cashless economy is that people stored there money in phone and give security to that so this is very riske because many hacker hack your security and stole your money.

So, there are many demerits and merits cashless economy. So, the person who use cashless economy system then use it safely.

Thankyou.

As per my knowledge, merits of the cashless economy is more beneficial over its demerits, like you can pay anyone to anywhere, it reduces theft, our country gets digitalise in way of using different apps like tej, phone pay, paytm and many more advantage of cashless economy.

I would like to share some aspects about Cashless Economy. This is a great initiative arises due to digital India Campaign. The merits of Cashless Economy are:

1) Cases of money thefts are reduced and people feel more secure with their money.

2) Reduction in Tax invasion.

3) People do not have to wait in long queues for money transactions which in turn saves precious time.

4) Senior citizens do not suffer difficulties as their pensions are directly transferred to their accounts.

5) Advancement in Technology as more and more robust apps (such as Tez, Phone-pay) are developed for transactions.

6) Paper and printing ink is saved.

As every coin has two faces, similarly for cashless economy demerits are:.

1) Only urban society make full use of cashless economy as they know how to use different apps while rural societies face problem in transactions.

2) high risk of data privacy.

3) Credit card fraud.

Cashless economy is good for developing countries like India. There are many advantages of cashless economy such as it reduces the fear of theft, it save the resources used for printing the currency notes, every transaction is noted which reduces corruption, no need to stand in a queue at banks for transaction of money etc.

Main disadvantage is cyber fraud and unawareness of people.

I would like to share an incident which happened to me. I went to a roadside shop and had four idli which costs 20 but I don't have liquid cash. The shop owner told me to pay through paytm I was shocked but happy. Then he told that pay rs 25 because he would be charged for the transaction. From this, I came to know that cashless made the value of 20 to 25, which means that its a loss for me. So, I conclude that the cashless transaction decreases the value of money.

In my opinion I would like to add some demerits. The cashless economy is much useful rural people but it's a total burden for urban pepole. The urban people is not aware of technology and they need some assistance and they are charged extra for it. For paying an electric bill in a browsing centre one urban people has to spend atleast 20rs which is a big one for ordinary urban pepole. So cashless economy increased burden to the urban people.

The Cashless economy refers to performing all the money related transactions via the internet or any other method which doesn't involve the use of physical currency. Earlier people had to carry cash whenever they had to do a transaction. Also if the amount was large there was always a fear of either the cash being stolen or lost. Along with this, we had to stand for hours in a queue to complete our payment, spending a majority of our time and energy. But with the introduction of a cashless economy, all these problems have been solved. Now you need not carry even a single penny in many places, thanks to the services like paytm and other online methods. You can now complete your transaction in an instant no matter where you are. All you need is a device with internet access. Along with this earlier people had to face a lot of problems during the public holidays as the banks used to be closed or had limited working hours but due to the cashless economy, you won't have to solely be dependent on banks as the service itself is 24x7. Therefore, it can be said that the concept of cashless economy has been a life changer as it has got many advantages over the traditional banking methods.

Now coming to the other part as we know nothing is perfect in the world. Same is with the cashless economy. It too has got some demerits. Talking about the rural areas the people are not well aware thus are easily becoming victims of fraud and as a result, are losing their trust towards this concept. Also there are cyber crimes incidents, thus putting the people's money at risk.

A sort of another disadvantage is that you can't do your transaction if you have got a poor internet connectivity.

But has a whole, as per the observation, the cashless economy has acted as a boon thus simplifying our lifestyles and has been adopted by many people thus making it successfull.

I want to add that it has brought transparency as all the transactions can be tracked hence majorly impacting terror funding organisation as most of the fund that was collected was black money and can't be tracked.

Demerits, I think the major demerit is accessibility. Digital medium of transaction is not available all over India.

Cashless economy has merits and equally demerits. Merits like we don't need to carry cash all the time with us whenever we go outside. Risk of money being stolen is also less if we have virtual money. Everytime when we have to fill a form or have to pay somewhere, we can easily use our virtual money. Also many times this happens if we are buying something and it's cost is like RS 99 or something, so by using virtual money we also don't need to pay extra 1 or 2 rupee for small transaction. There are many more merits of cashless economy. Demerits are people who don't have much knowledge of handling virtual money they can lost a big amount because of just one click. Also these virtual services can run only with internet. If we don't have net on time we can't pay or use our money. Overall it is a good decision if comes in act for people but along with this, a proper facility and learning should be there for everyone whether user belongs to new generation of internet or a senior citizen.