Merits and Demerits of Cashless Economy

A ' Cashless economy' another good approach and trending topic after 'digital India'.

India is a place where there is more than 90% transactions are done through cash, so it is really an attractive initiation. If we talk about its prose then it reduces corruption, lessen black money, tax evasion, cost of printing notes, saves time, gives security to our money to some extent too. Its like everthing will be done by just clicking one button. Overall scenario, it is a great boom to e-commerce sector. But there is some hiccups which are as below.

1. First India is a developing country which is rather a labour incentive than to capital incentive. So where most of the labourers work on daily based system of wages.

2. Suppose if you reside in a low network area, how would you complete your transaction ?

3. Security problem :As we all know being digital or cashless both attract cybercrims.

Thus, according to me, a vision of cashless economy is really a good initiation and approach with its own type cons.

Cashless economy is good, it will save our time. And this system will give the chace to some uneducated people to learn some new technologies so that they will know the thrill of the life and technologies.

It's not possible only by the governments it is the responsibility of all the educated people also so that all rural area people also get the benefits of technology and our country also move forward.

Overall it's good till the misusing of the technology.

The cashless economy has many merits as well as some demerits also.

Merits-

# reduces black money.
# reduces the fear of theft of money during travelling.
#saves trees and also printing cost of notes.
# easy to send money as it saves time also.
# 24/7 service.
# government benefits are reaching out to people directly.
# reduces tax evasion as tax directly deducted in each transaction automatically.

Demerits-.

# Cybercrime also increasing. So sometimes transactions are tracked.
# ATM and ATM pins are captured while using ATMs.
# for cashless transaction internet or network of mobile must be good otherwise no transaction can be done.
# most part of India is rural, so they are still unaware of technology. For them it is useless.

That's all about the cashless economy. Thank you.

I would like to add my point that Cashless economy means we can say digital economy which is trackable. It helped us to reduce one of the most dangerous disease "corruption".

It reduces the use of paper, it promotes us to make a payment by digital system which is much more comfortable and easy.

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.

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.

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.

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.

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.

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.