Merits and Demerits of Cashless Economy

Hello everyone.

I am Akash.

Cashless Economy comes under the Digital India incentive taken by the Indian government in July 2015.

It is a double-edged sword. I firmly believe it has more pros than cons. I would like to mention a few positives about it:

1. It made transactions more transparent. This will significantly reduce corruption. It will bring down the level of black money accumulated.
2. Transaction has become fast. No more worry to maintain hard cash.
3. It reduces the theft of physical cash.
4. Now it is harder for someone to evade tax as all transaction is being recorded.
5. E-ticketing of railways, cinema halls, aviation service and many more. Prior to cashless Economy people had to stand in a long queue to get their tickets.

Cashless Economy still has many flaws in it like Cyber Fraud, Inconvenience caused during transaction due to internet disruption, etc. The government needs to resolve these issues as soon as possible. It needs to aware Rural people about cashless economy. It should frame stringent laws against cyber fraud.

Hello Friends.

Today we have to go discuss the merits and demerits of cashless economy. Friends as we know that there are lots of advantages or disadvantages of cashless. Firstly we know that in the cashless economy we don't need to carry cash so this is a big advantage for us. If we carry cash we are afraid to carry physical cash. But in the cashless economy, we need not to worry about physical cash we can transact money through any online payment mode like phone pe, Gpay or paytm etc. But there is a big problem in the cashless economy is that we have to face network issue, failed transaction issue as well as If we do transaction to a wrong person we unable to take our money. So, we can say easily that if we use cashless economy with some precautions we surely find it a very good model of payment and in the physical cash economy, this is a good payment mode for the rural area because we know our economic system in a rural area there is not good network facilities. So here we know about a few merits and demerits of cashless economy.

Hello, friends good morning /evening.

I am Ajfer Intekhab. Thanks for providing this opportunity to speak on the topic cashless economy. First of all, understand the meaning of a cashless economy. It is an economy which doesn't use any physical cash for transactions but rather it would be directly paid to the receiver account.

In my point of view, every coin has two sides so a cashless economy has both merits as well as demerits.

MERITS:
1. It saves a lot of time in sending money to someone's bank account.
2. Corruption, Robbery and loss due to damaged of cash will be eliminated.
3. Cashless economy helps us in using online services like recharges, booking tickets, and online shopping in a much easier and safer way.

DEMERITS:

1. We may have to face server issues sometimes.
2. Cyber crimes also increase due to a cashless economy as getting money from someone's account is much easier and faster now.
3. Illiterate and unaware sectors of society may not get benefitted from a cashless economy due to a lack of technical knowledge.

Cashless economy means appealing and ideal. But the thing is our government is yet to perfect its the current monetary system.

1) Government should "abolish" all kinds of manhandling of currency. Currency is global dignity of a country.

2) Mishandling, making of fake currency should be heavily investigated and punished properly to an extent it simply stops.

3) Meanwhile Gov should be formulating and working efficiently towards the secure virtual system. It should join hands to the newest generations for this. And take info from cyber culprits who have done related crimes to make sure it doesn't happen.

4) The change should be slow and perfect.

The cashless economy can minimize paper wastage and reduce all sorts of cash-related crimes. But it brings a whole new set of problems in the cyber level where our country is yet to properly believe and invest in. How can a Gov that cannot yet handle ancient monetary issues cope with the newest ones? It's better to take time and start with a bang; not let hackers make use of naivety.

Today we are discussing cashless money.

Merits:

In the 21st century, the cashless payment in India is growing rapidly and also benefits to our overall development of a country because of cashless payment we can easily transfer money whenever require and also can get money from anyone no need to waste our energy and time but as we know every coin or topic has 2 sides one is positive and the negative and cashless payment also have negative because of cashless payment we don't need to stay in the queue for an hour and hour's it saves our time, energy, and also money from the thief.

Demerits:

As we know nowadays the digital crime has bosted various scams schemes running all over the internet and also our data is not safe anyone can hack our data because of our small mistake and also 50-60% of the population of India belongs from the village who don't have good internet connectivity how they can do cashless payment as the cashless payment increase the digital crime also increase if we don't keep alert ourselves.

Thank you.

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.

In my point of view, India is not ready to go cashless because of poverty and unemployment. These are the two barriers which are creating a problem to go cashless. First of all, we have to work on this then we can go cashless. In India, many people have no money to buy an android phone because of this they are unable to make payment. And second, in India, many people have no basic education because of this they have no knowledge of how to operate a phone. At the time of demonetisation, many big companies went to door to door and told them about the benefit of the cashless economy. They also gave them cashback benefit which motivates the consumer to deal without money. One negative point is that many people have the perception that cashless transaction is not a safe way to make payment. The government did a lot of things to promote the cashless economy. They should find out some different ideas to promote the cashless economy. If the government remove all the negative point of the cashless economy then people will adopt it.

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.

Hi everyone,

Everything has prons and cons as such, Cashless economy has also its merit and demerit.

When we talk about the merits of the cashless economy then first thing comes in our mind is it is an easy way to transfer the cash through digitalization.

Secondly, This saves the huge money on print the currency.

Thirdly, you can track every transaction easily. It may help reduce the corruption and malpractice that things affect our economy.

And last but not least it helps grow our economy very swiftly. And it also reduces the threat of fake currency that majorly affects our economy.

When we talk about demerit of cashless economy.

Firstly, we need a proper law and regulations. And it should be implemented on the ground. And I think there is an authority or body like SEBI, RBI who regulate all these things.

Secondly, there is a lack of knowledge may be the big hurdle of the cashless economy and many rumours as well.

And, if we see a cashless economy then the government should remove the limits on e-transaction.

In the modern e, cashless transactions are widely increasing day by day. It has become a trend to do cashless transactions as it is a convenient method and source of doing transactions. Basically cashless economy means in which transactions are done mainly through online banking net banking from various apps like paytm, phonepe etc. While doing net banking there is a need for high-speed internet which results into a saving of time and energy.

MERITS OF CASHLESS ECONOMY:

1. Corruption and black money will be reduced because there will be proof of each and every transaction.
2. Time and energy will be reduced.
3. There is no need to take the burden of carrying money with ourselves.
4. There is no need to stand in a long queue.
5. It will help in bringing transparency in the economy rather than an increase in unacceptable and illegal activities.
6. Paperwork has reduced.

DEMERITS OF CASHLESS ECONOMY:

1. It is convenient for those who are educated and known to the internet.
2. It depends upon technical infrastructure.