Merits and Demerits of Cashless Economy

Hello friends.

Good afternoon.

I would like to express my view on cashless economy. By changing and enhancing the technology, instent needs a cashless economy play a major role for easily working. Which help us remove a robbery cases. It is beneficial for people who are living in urban area.

Demerits - mostly a rural areas literacy rate is low this is a one of the demerits in India in case of cashless.

Hello friend's,

Yes, that is a good thing but I woul like to say somthing pertaining to the cashless economy, if we want that cashless economy came in future, then at that time, it is absolutely true that corruption can be abolish, which is happening now a days. And also the wastage of time will be reduced, which we spend in the queue of the bank.

But demerit of cashless economy is,

1) the people who don't know about the digital payment they can't avail of this economy and thereby many problems can be occur there.

2) it will create the problems in the retailer's business.

3) it will also create problems for the rural areas people. And also born the Cyber crime etc.

We can only avail all opportunity of cashless economy, when all people's will be educated well.

If people's will be educated it means they all will be aware and before pay any payment online, they will check all terms and conditions and they will read carefully and meanwhile the chances of the mistake will be less over there.

That's my point of view.

Cashless Economy is a good concept and so many advantages of this like;

- Do not need to carry cash with us.
- There is no problem of charge when the transaction is even in odd value.
- Use of paper is reduced and that's why trees are safe.
- by the cashless economy, corruption is reduced.
- Time is reduced for any type of transaction.
- For transfer of money in saveral accounts there is no need to stand in queue in banks.
- By doing online payments work stress is reduced.

Now, as we discussed above there is so many advantages of the cashless economy but it has also some demerits like
- In our country small retailers are not able to do online payments they are able to deal with only in cash transactions
- Sometimes when we are doing online payments than some amount of fees we have to pay that is not good
- So many people don't have any Idea about cashless economy because they are uneducated
- sometimes people are having half knowledge of digital payments, therefore, they are exposed to cybercrime and losing their money.

Merits of Cashless Economy are as follows:

1) People can easily access from anywhere in the country.
2) Reduce the corruption by the digital payment system.
3) Increase the economic growth of the country.
4) Innovations in the technologies and services.

Demerits of Cashless Economy are:
1) No proper knowledge about the digital payments and transactions.
2) Not aware to the rural people living in the villages.
3) No positive effect to the people who live in the places where no facilities of internet i.e, Villages.
4) High risk of hacking.

Cashless economy is obviously a good concept but it comes at the cost of privacy of people. This concept reduces the need for holding cash and through this concept, the circulation of fake currency can be regulated. But to go cashless means getting digitalized for which literacy is a must which is a limitation for Indian economy. Also, for digitization, accounts are linked with cards which may lead to the hacking of private information.

Hello everyone,

Merits:
1) An individual does not need to carry cash with him or her everywhere.
2) It will reduce the chance of theft from the wallet.
3) Give freedom from the problem of change when the transaction is of the odd amount.
4)Transfer of money between virtual accounts usually takes less time.No need to stand in a queue at banks.
5) The advantage of cashless is that it is easier to track illegal transactions.
6) Since all transaction will be done through organised channels that is through banks and financial institutions. So, No businessman can evade taxes.
7) Cashless transactions would stop the operation of such businesses like prostitution, drug trafficking, terrorist financing, money laundering and election funding.

Demerits:
1) The small retailers in India deal only in cash and have not been able to invest in the digital infrastructure.
2)The biggest disadvantage of the cashless economy is that not everybody has the knowledge of doing digital transactions and hence its reach is limited to urban.
3) People having half knowledge of digital payments are exposed to cyber fraud and losing their hard earned money to online scam and hacking of bank accounts.
4) Digital mode of payments like the credit card, wallet payments, internet banking involves some transactions fee which is not the case with cash transactions .

India is a developing country. If we want to make it a developed one we should have these kind of initiatives and implemented in a way that it won't affect its citizens.

A 60 year old man has no idea how to pay in a electronic way while a 10 year kid knows how to pay through card and e-payments.

Cashless economy can be implemented only in countries which have developed a long time ago while in India this takes time.

Merits of the cashless economy is way too much as compared to the demerits, a world without currency note is definitely a big dream for many of our economists.

Personally, in my view, the cashless economy should only be applied where the literacy rate is 100% both in academics and computer world knowledge otherwise it may be biased for some section of our society.

First of all, cashless economy is a great economy which is the consequence of digital India. The most important advantage of the cashless economy is every transaction done is noted and has a e-receipts, which promotes less corruption. Other advantage is that the money can be stolen if it is in physical form but it doesn't happen with the digital payments provided that the software and the databases are secure.

At the same time it has its own disadvantages for eg, people from rural background or illiterates can't go cashless but, anyhow this can be compensated by bringing awareness and educating them. Other disadvantage is that the digital money or the transactions has to protected from hackers or cyber criminals.

I hope these challenges are resolved at the earliest.

I believe there is more advantages of the cashless economy than it's disadvantage like cashless money transfer is more transparent, hence more manageable (means less corruption) , easy to transfer funds, requires less time.

For instance, if one lives in Delhi wants to transfer funds to Mumbai he can transfer that using internet banking or using a mobile wallet, credit card etc. So it was easy, it took less time than going to the bank and then transfer money.

Most of the times blank money gets accumulated because the bank (government) has no way to keep track of transactions happening, but in a cashless economy, the bank can keep track of it and if the applicable tax will be charged on those transactions.

Now coming to disadvantage, one of the biggest disadvantages is lack of security,

As now it has become rather easy for a thief to steal money by sitting in front of the computer.