Merits and Demerits of Cashless Economy

I would like to share my comments on the merits of a cashless economy. As money is the most important part of our lives even for fulfilling the basic necessities of life we want money as earlier barter system was being followed and then currency came into existence. With the growing scope of ebanking now things can be transacted online by the click of just one button money gets transferred from one account to another.

Merits of cashless economy.

1. It saves, the printing expenditure on making currency as a huge amt of the country goes on such task.

2. It makes the transactions safe secure and of course speedy.

3. It reduces the chances of theft and misplacement of cash anywhere.

4. It helps in developing of the economy as in cashless every individual will know how to access the net and how to deal with things online.

5 It helps in reducing the commission of the fraud of meditators that increases the cost of things uselessly.

As I would like to conclude and one must make the less use of cash as possible due to all the reasons that are being discussed in the above mention points.

Thank You

Hello everyone.

First of all, I want to talk about the merits.

1. It reduces paperwork and their expenses.
2. It also reduces the chances of mistakes and will make work faster and easier.
3. It will make rupee currency strong than a dollar because all our economy we can show to the international market.
4. It reduces the rate of interest and promotes to FDI.
5. It gives an opportunity to common people to improve their economy by taking a loan for the business.
6. It gives all information about the people's transactions so that government can resist corruption by making sight on them.
7. It also enhances GDP and makes ease of payment methods.
8. It saves trees and the expenditure to make paper currency.
9. In this, if someone fraud with others, the record of cashless show how much money given to the person so helpfully in detection clues in crimes.
10. Overall it saves huge time which can be utilised to do work and economy of a country grows with them.

Demerits.

1. It increases cybercrime.
2. It totally depends on our gadgets such as mobiles, computers etc so can't use without these gadgets.

Cashless Economy refers to the money which is not in terms of paper format which is used for buying or selling something. Economy is nothing but a tool which is used in helping the things to buy or sell something which is needed for us. In earlier the coins are used which further replaced by paper material and now the economy took a shapeless structure where it can be used by avoiding usage of paper material and any another material which is used in olden days.

While speaking about the merits of the cashless economy are.

1. Easy transactions can be made.
2. Flexible to carry anywhere and anytime.
3. No need for cutting down trees for paper manufacturing.
4. Thefts cannot be stolen easily.

If we talk about the demerits of the cashless economy.

1. Internet connection is must where some areas are not so developed in the usage of the internet like rural areas.
2. Less secure if it is hacked.
3. Money circulation may damage in a country where it affects the Indian economy.
4. Can not be reliable for illiterate people.
5. Electronic devices knowledge must be there for usage of cashless economy.

For every topic there consists some pro's as well cons. So now we are going discuss about some pros of a cashless economy.

Nowadays all are familiar with digital transactions over through internet, it's a traditional way for this generation. We can also say that it is one-way development of our country, now everything is made online like glossaries, shopping, tech market, online food, also in small-scale businesses too. Indirectly all people are familiar with digitalization.

By this day by day technology increases and also provides jobs for job seekers, online transactions reduce the risk of theft of someone's property, "secured record is more beneficial than a piece of paper".

Now coming to the cons of a cashless economy, in our country, not all acquire an education. Literacy of India is somewhat low compares to all countries, some rural people may not be familiar with digitalization. They are at the exchange of currency. In order to keep looking after all these issues cashless economy fails in some places. This is all about my perception if it is any fault try to excuse me. Thank you.

Hello everyone.

Today we will be going to conclude the merits and demerits of the cashless economy after demonetization government of India start promoting the cashless economy. It's a very good policy for the country like India because in India there are some people who are corrupted for that our government need proper schemes and policy for monitoring so by using cashless economy we can monitor them and have proper transparency.

Some other merits of going cashless is that we can do our payment and transaction on mobile or computer on any time or place.

So ultimately it makes our lives comfortable. And we can also save our precious time. So overall it's a good scheme we should practice and promote this.

As we all know that rose comes with thorns, in the same way, there are some drawback of this scheme

People are getting lazy.

Risk of Hacking of account but there are very less chances.

So we can conclude that if we use this scheme wisely and don't share our account details then ultimately it's a good policy and definitely improve our country on the basis of the economy.

A cashless economy is very good thing to have for a country to function properly.

Talking about the merits regarding a cashless economy then there are various good reasons for the cashless economy to work in India. The cashless economy will help the investments to grow. It will stop people from Carrying Large amounts of money with themselves to avoid getting it lost. It is a good substitute for people who often carry lots of money for business or another purpose.

The cashless economy will also motivate people to use technology as it includes using ATMs or credit cards or UPIs which will improve people's knowledge about technology.

When talking about the demerits cashless economy uses the internet to operate and that's why there are several security issues. There is a huge risk of hacking the accounts having lots of money. The cashless economy can also be a problem if not used wisely as it can be easily transferred to bad peoples including terrorist organizations through online methods so it will be responsible for the government to keep a good watch on these transactions.

Hi Everyone!

We have a great topic to debate "Merits and Demerits of Cashless Economy".

Well, I strongly support cashless Indian economy knowing that a large no. Of people are against of it and they're right and they have the valid points too like in India where 6.7% population is below poverty than how can they afford smartphones and net recharge; India where 26% people are not educated then how can they use the online platform, India where only 55% population is using the internet; Cybersecurity risk is also high, most of the literate population also don't know the cyber threats and many more still I'm supporting this campaign because this is not the single-day campaign. Government is not converting a cash-based economy to a cashless economy in one day. It will take years so just relax but Yes now India is not ready to go for complete cashless Economy.

Undoubtedly government is working over it and has taken various measures towards it like Digital India campaign, Demonetisation, promoting digital payment, providing a license to payment banks, etc.

CASHLESS in other words means digitalisation. Digitalization is one of the primary motives of the government today.

Everything on earth has merits and demerits. In one hand, digitalization ensures security, ease of transactions, reduction in threats, volatility and stress-free businesses. There are umpty number of platforms that provide digitalized transactions and can help in easy movement of money without much prerequisites. With these in hand, there should not be any requirement of maintaining a bank passbook, visiting your broker often to check the balance etc.

On the other hand, despite the large database of the internet, only about 530 million of the Indian population had access to the internet in 2018-19. And most of the people who live in villages are not aware of how the digitalized world works.

Cashless economy has most of it's effect on the younger generation as they are more prone to such technological revolutions.

A cashless economy becomes a great step towards digitalization when people are aware of basic knowledge and requirements.

Merits:

1. There are many benefits of a cashless economy. I will talk in favor of it. The importance of cashless transactions has grown from the demonetization phase. Nowadays, people preferred cashless transactions because there can be an announcement at any time that after 12'O clock certain notes will be banned.

2. In Cashless transactions you don't have to go anywhere you can make payments even from your home at any time. It saves time. Cashless transactions are faster.

3. The cashless economy will reduce corruption. Every transaction would be on record so this will make any process transparent and smoother.

4. With the cashless economy, people will open more bank accounts as it is needed for doing cashless transactions. So it is beneficial for the country's economy.

Demerits:

1. People in a rural area or older people don't have knowledge of doing cashless transactions.

2. There are chances of hacking or fraud by asking OTP through fake calls.

The cashless economy needs the internet. Without the internet, the cashless economy is failing.

Hai.

Digital transaction: It is a seamless process which one are more participates involves, with the effect of no need of cash.

Merits:

1) By using digital payment every payment was recorded and it requires tax for transactions.
2) Increases the revenue status. Because easy mode of pay bills.
3) Empower the citizens to take their subsidy from govt directly their account.
4) Free from long queue.
5) No need to visit bank Every time.
6) No need to regular withdrawal for daily usage.
7) Safe from rubbery.
8) Saves expenditure of money for printing notes.
9) No need of mediator for transforming money.
10) Even 1rupee also transfer by digital payments. And secure.

Demerits :

1) maximum rural people are illiterate.
2) Some are don't have a bank account.
3) due to poverty some are not having minimum a/c balance. So their little amount of money will be taken as a penalty, so they are not interested.
4) Fear of cyber hacking.
5) According to the world bank, rural Indians are unable to open an account. And maintain bank balance.

Thank you, friends.