Merits and Demerits of Cashless Economy

Nowadays everything and everywhere is digitalised. Now India is going to cashless. So this is a very good think to accept as this will help us from many sides. It has lots of merits and demerits.

The merits are:

1. Don't need to carry cash on your wallet.
2. Don't need to make a queue outside the atm.
3. Don't have to go bank for payment or anything else.
4. We can use our money from anywhere anytime.
5. We can transfer our money to any place.
6. We can shop online which is saving our time.
7. We can even order food and medicines and other necessary goods and can save time.
8. No need of paper money means save of trees. Save the world.
9. Government need lot of money to print money which is not required for cashless economy.

And the demerits are:

1. The main demerits is illiteracy. Maximum of aged people does not have much knowledge to use internet.
2. In rural area not everyone has account number on bank.
3. Not everyone has smart phone to do all these things.
4. Internet hacking is one of the major problem.

Cashless economy means there is no physical case, payment and transaction made through credit card and debit card, mobile banking and internet banking. After launching the program digital India, the govt of India aim to drive people into the caseless economy. This mission boost by announcing the demonization. It has both merit and demerits.

Merit:

Cashless economy reduces dealing the fake and fraud money it also reduces the money getting stolen and lost. It provides us with every detail of our transaction that helps us to keep records and analyze one's expense. Many builders, businesses man and trader used the physical cash to avoid service tax but the implementation of the caseless economy they can't do that.

Demerits:

India is a country where 60 per cent belongs to a rural area and more than half, doesn't have a mobile phone so it is difficult to spread it. Another reason is illiteracy where people do not aware of the use of technology. Hacking and tracking is a big hurdle for the caseless economy.

Let's first understand the term 'cashless economy', cashless means exchange of funds by the use digital money and economy means the prosperity and earnings of particular place or area.

In this world, everything has it's own merits and demerits. Similarly, if we talk about the merits of Cashless Economy, some of them are that it eliminate the paperwork, it saves the time, speed up the official work, eliminate the long queues in bank, help in the development of the Digital India and there are many more.

Now, if we move forward towards the demerits of Cashless Economy, one of the demerit is that it is of no use for illiterate people, some time transaction also get failed at the time of urgency.

Online fraud is one of the most common demerit of Cashless Economy, anyone can be the victim of online fraud.

Government is doing their work in this field but all over what we have to do is that we have to become more aware, more preventive while making the use of digital money or while doing online transactions.

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.

Hi Guys.

I am Praveen the topic given to us is merits and demerits of cashless economy. So guys, in my opinion, the merits of the cashless economy is much higher than demerits. Due to digitalization and automation now we are able to do transactions like electricity bill, water bill, mobile recharge, online shoping etc. Within a minute without going here and there. Hence it saves time as well as money.

According to environment aspects as we all know that climate change is a big issue for everyone due to deforestation so yes cashless economy reduces less use of paper and eventually deforestation. So we can say the cashless economy is ecofriendly.

Corruption will also reduce because there will be direct transaction no involvement of the third person.

If I talk about demerits then:

In rural areas, people are not that much aware of these schemes and they have some internet issues so they can't take that much advantage of these schemes.

Yes, there is a chance of hacking so you should be aware of it.

Merits:

* Nowadays everything is through the internet. We access the internet every day. It is also mandatory for our life.
* The only main advantage of this system we don't take money from one place to another place.
*theft also reduced when we transfer money from one to another account.
* in our country I think it is not possible because very few people having pure knowledge of this system.
*but this system will make our country from developing country to a developed country.
*don't require papers to print the money.
*our valuable time absolutely save when we using this system properly.
*we don't go for anywhere to pay the money.

Demerits:
# every fantastic system has demerits.
#uneducated people suffered a lot because they are even don't know how to access the internet.
#our government first provide equal education to all of us.
#then they proceed with this system.
#or our government will provide 100% security when we transfer money from one bank account to another bank account.
That's all.

A cashless economy is one of the major outcomes of digitalization. By the time, our honorable PM Shri. Narendra Modi Ji raises the slogan of " Digital India", the cashless economy is in great use.

It is of huge advantage as it first reduces the chances of robbery. In spite of this, it is a way easier as it doesn't require any extra activity to handle and just by one single click, one can transfer money, request money to and from others respectively. The cashless economy also provide a way to shop, pay bills, order food just by simply sitting at home.

"Every coin has two sides".

Likewise, every single thing has two phases i.e., positive and negative.

Demerits of going cashless include cybercrime. As a number of cybercrimes are going on in our country, and if any such crime happens regarding a person's economy then it can strike the person inside out.

Also, the cashless economy has a demerit such as transfer money up to a certain limit. There is a predefined limit assigned to it.

Thank you.

Hello everyone!

I will go with the positive side first, "Cashless revolution" is playing a beautiful role in India's growth and development. We don't have to carry our wallet with us every time to pay. Transactions have become a way easier and efficient for everyone. It even saves our time to some extent. But as it is said, every coin have it's two sides!

Negativity/Demerits of the cashless economy are also there. Demonstration played a great role in lifting up some so-called *brands* and increased there market value to the skies. Today everyone is dependent on it. Even a small roadside vendor is having such applications for money transfer. It is a big source of income for the company. I think cashless transactions to have the same condition so as the cash paying system with reference to fraud.

In the end,I want to conclude that, it may be cash or cashless if there is the willingness of anti-corruption in mind in every individual's mind, no one can stop India's economic growth.

Thanks.

Minting coins or printing of paper notes require money, which is an expense for government or central bank like RBI. If a transition is done from cash to cashless transaction then there would be huge savings for the government and lead to strengthening of our currency.

It also brings transparency in transactions and disables the provision for money hoarding and tax evasion. Also since the banks have more money with them, this leads to lower rates of interest which leads to easy availability of loan and greater economic development.

The main demerits of a cashless economy is the risk involved in hacking of our personal wallets or accounts. Also there is the risk of erasure of the money records from our account in the event of war etc by powerful foreign governments which could lead to crippling of our economic systems.

Therefore in order to get the benefits of cashless economy without any drawbacks we must ensure for the safety from hacking or attacks by terrorist or foreign govenrments.

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.