Write a short essay on the merits and demerits of cashless economy

A cashless economy refers to the kind of economy wherein most transactions are carried out in the digital format. You no longer need cash for making payments as there are several wallets, online payment, cards which can make things easier for you.

Merits of Cashless Economy:

Here are the main merits of having a cashless economy:

i. It becomes very easy to pay

ii. You do not need to worry about carrying cash wherever you go

iii. It minimizes the risk of being robbed of your money

iv. It is definitely a dynamic option as far as the economy is concerned

v. It also helps in curtailing black money

Demerits of Cashless Economy:

Following are the main demerits of having a cashless economy:

i. It is very susceptible to increasing cases of cyber crime

ii. It is hard to be used by people who are not educated

iii. It requires basic use of technology

So, one should optimize the use of cashless economy and also educate the mass to spread its use.

Essay on Cashless Economy – In India (Essay 2 – 250 Words)

“Cashless Economy” is the system where all the monetary payments are done by using digital means like internet banking, debit, credit cards, e-wallets instead of hard cash. India was introduced to “cashless economy” in a pronounced way in 2016 when the Union Government led by Shri. Narendra Modi announced demonetization and scrapped the old currency of Rs. 500 and Rs. 1000.

Merits:

“Cashless Economy” promotes electronic payment methods which improves transparency and accountability. Tax collection increases as all the transaction takes place through bank accounts. “Cashless Economy” can strongly mitigate corruption and flow of black money as all the deals can be traced. Online payment comes handy, thus people need not carry cash all the time. “Cashless economy”, is time saving and prevents theft and burglary of liquid cash. “Cashless Economy” endorses paperless environment friendly means, it will save a huge amount of money spent on printing and maintenance of currency.

Demerits:

“Cashless Economy” embodies Digital India, but even now most of the demographic lives in rural areas which are deprived of technological advancements and its knowledge. Small businesses still use cash as they cannot afford digital infrastructures. Hackers and Cyber Crimes are a huge threat to “cashless economy” as most of the digital transactions are vulnerable to these antisocial elements. India is lacking robust and widespread internet connection in all parts of the country which becomes a huge hurdle in practicing “cashless economy”.

Conclusion:

People must be educated about “cashless Economy” and its benefits. “Cashless Economy” can be practically realized in India by providing secure, viable and free internet centers must be provided for such major transactions.

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