Merits and Demerits of Cashless Economy

In my opinion the whole concept of e-commerce is a very advancing field. Green platform for transactions. People were busy investing their time and money on commercial trading platforms purchasing their requirement when the cashless economy soon became a major roll out for every individual with smartphones in their hand. Since the advancement of e payments money is more transparent. It has saved a lot of time from ATM queues, the collecting re1 toffee which shopkeepers give us in return for coins.

This is quiet a lot of saving which we may not realize in our day to day chores. Whether we have cash in our hands or not its not like we cannot purchase stuff. From buying fruits from a fruit vendor to shopping in malls we are positively advancing in terms of mode of payments. Everybody is switching e payments because its easy to handle. Like everything we know this has its own demerits as well. Expenses have increased comparing to what it was when we use to trade in cash. Every transaction is under scrutiny. Not functional if the internet connectivity is hampered. Thus this facility is still not accessible to certain section of society.

Thank you.

Hello everyone.

In my opinion, going forward to a cashless economy is the right step for the future. It basically means the digitilization of cash. Like every other system out there in the world, even this has its own merits and demerits. It provides a safer method of transaction through secured banking. In the times of covid it also helps in contactless transactions. Digitalized banking opens the door at home services where an individual need not wait at long queues and spend his/her entire day in the bank. Most of the local vendor nowadays are shifting towards cashless transactions which in turn helps them to keep a legitimate, safe and a reliable method to track their incomes.

Despite its merits, there is one big problem right now which will be eventually sorted out in the future is to reach of the program. Not many people are aware or know how to run online banking websites. Many banking sites don't have a very easy user interface which makes online banking a hectic and time consuming process. Although online banking exists there are some processes which require human verification hence we can say that it isn't completley digitalized.

Merits-.

1. It helps to put an eye on every transaction and that will reduce the tax evasion.
2. It increases the feeling of security, as we have seen many robbery cases at the time. E of money transfer as a cash amount.
3. It will save the costly paper on which we are dependent on import on a large scale, and thus save the valuable foreign currency.
4. From cashless transaction we can also earn money as many e- wallet are proving cashback.
5. Easy to handle account any time from anywhere this saves precious time.

DEMERITS-.

As everything has its dark side also, so cashless economy have some demerits also.

1. For rural people or people having lack of knowledge get trapped in a web of e- thugs.
2. We have seen cases of hacking of account by hackers which results in loss of entire belonging earned day and night.
3. Lack of awareness increases illegal trading.
4. By giving small greed to poor people rich one fulfil their dreams, or convert their black money into white (as happened during the time of demonetization).
5. Unavailability of pos (point of sale) machine and poor network become an obstacle in the path of cashless economy.

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.

Hello friends.

As we know that economic development is more inclined toward technology. A cashless economy is also a part thereof and has so many positive aspects as well as negative aspect.

Positive aspects:

1. Reliable and time saving for the transaction of money from one user to another user accounts.
2. Transparency at the governance and individual level ex: many government schemes or fund benefit can be directly put into the beneficiary account.
3. Control on corruption to some extent.
4. Mitigation in the environmental issue (use of paper to print money or some time metal also).
5. Availability of money transfer system for 24 * 7 hrs.
6. Increment in the Security causes decreament in the risk.

Negative aspects:

1. Many people are not aware about cashless economy so they are unable to use it.
2. Literacy is a major factor because it is the primary need to operate it.
3. Chances of failure of transaction and will take more time in refunds create unwanted annoyance in people, But it happens sometime.
4. Less probability of hacking of data.
5. Unavailability of internet connection create a barrier in cashless economy.

Hello Everyone.

Any sort of Organisational, National or International work needs proper management to handle a large amount of all types of data, queries, etc. From this one is very important is the cash. A very large amount of transactions is frequent in any economy. Handling hard cash is a cumbersome task. So, this is eliminated only by replacing it with cashless methods, which are e-payments. Merits of the cashless economy are more and efficient as compared to its disadvantages. Let know the biggest merits - Anytime, Anywhere one can exchange his business transactions at the fingertips. There's no need to maintain an extra ledger for transactions history, Now in the cashless economy, this history is auto-generated.

Regardless of the quantity of amount you can transfer or get transferred in your bank account. The only problem it is a procedure. If every citizen is capable of doing so, it is like a time and money saver for all.

The only demerit is the chance of being a part of fraud or robbery. Cybercrime is a major problem in front of a completely cashless economy. If it is completely secure then it's like a god gift.

The meaning of cashless economy is a country with least corruption and these are linked vice versa.

If you ask how? Then I would say, cashless economy means transparency in the system and everywhere, and where there comes transparency, the corruption would no more find its way there.

Some facts that I would like to put up in India has 2% cashless economy whereas Singapore has 61%. If you compare the corruption level in Singapore and India it will surely reflect the reason why Singapore has the 61% economy to be cashless.

Besides other advantages, such as being real time, saving paper, saving money printing papers at RBI,

Saves time provides a full proof of the payment, the cashless economy is also suffering from achieving its target. Some of the reasons are, old people still find it satisfying paying cash. Also, vegetable vendors and other road shops who are mostly illiterate hardly know and hence they don't trust on these things.

Besides, due to some internet problem causing transaction done but not credited to others account also creats an atmosphere of dissatisfaction between customer and the shopkeeper.

As we all know everything has basically merits and demerits.

Taking about its merits.

1. It is less time-consuming as compared to the cash holding economy in the terms of money transfer, balance inquiry and in many ways.

2. In any situation, it is not possible to come out from their house or shelters so on that time it is beneficial for some of the situations when it can be a useful emergency in-country, many pandemics etc.

3. In my opinion, it is safer than cash holding economy. Because security is too high in these platforms.

4 - it will definitely reduce the corruption in our country.

5- it will provide a good boost to Indian GDP By giving high employment in the country.

Talking about the demerits.

1. In the terms of security it should be improved because many apps consist of many bugs, and those bugs became a great opportunity for the hacker.

2. So in India, everyone doesn't have a phone, because most of the people in India are lower middle class and if they have so, there are many places in India where there is not even a connection of the internet, on such areas it is not possible to use.

Today's topic for group discussion is merits and demerits cashless economy.

First of all, India is not ready for a cashless economy. Though India is becoming a digitally strong country day by day it will take some time for proper implementation of the cashless economy. Due to the lack of knowledge of different individuals, it is not successful in todays time. Many of the village areas people don't even have a smartphone so they can't do online transactions. Even though they have it, due to the lack of knowledge they are afraid to do it as they prefer old ways of money transaction. So we need to educate them first about its advantages and how easy it is to do as it will help us to save time as well as hardships. It can be done sitting at home or anywhere instead of meeting the dealer or someone else to give them cash. It also helps to reduce documentation of money transfer as we can know it from the history of a paytment app like google pay, Bhim, paytm etc. We even get discounts by doing the payment online so it is very useful but we should learn its necessity and how useful it can be in our life.

Cashless means a credit card, debit cards which mean a holder can use this cards if they mobile within a second transaction can be done by using apps like phonepay, Google pay, patym made transactions so simple within seconds work can completed. Carrying a huge amount of money with us a big headache because of theifs and we feel burden and we also become panic so by this cashless we feel better no tensions. Cashless made human being things so easy, we can do our shopping easily, from one place to another place we can send money by using applications and we can order any things, we cannot stand Infront ATMs or bank for long hours this cashless made easy for this kind problems. Cashless are spiking day by day. All this are things are useful to people who know about mobiles operation it means educated people will know a lot. Where as coming to the demerits, people from rural areas they have to stand in front banks to get money from banks, governments as to take so measures to get awareness in people, and hacking is also a problem for this it need good internet connection without that we cannot use it.