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Merits and demerits of cashless economy


India going cashless is indeed a very bold move by the government of India. With the influx of technology in our daily lives, going cashless has become inevitable. Though it is a good move, it will be successful only if it is executed in a proper way and at a proper time. Let me point out some of the merits and demerits of this grand, bold move.

MERITS

Time efficient

If India adopts the concept of cashless economy, buying and selling of goods would be just a click away, and hence saving us a lot of time for other daily activities.

Barrier to black money

Going cashless can create a hell lot of problems to smugglers and other tax stealers, as their transactions will now be under the eagle eyes of the IT department. Hence black money can be cut down to a great extent.

Employment

As going cashless requires technology, it will aid in the boom of technological advancement of the nation and hence will create vacancies for fresh skilled employees.

Easy money transaction

Carrying a huge sum of money in our purse or wallet for shopping or for other needs is a very hefty task. But, this effort can be cut down to almost nil if we reside to cashless economy. All we need, is our Smartphone that's all

Save paper

The world is facing a serious energy crisis. Going cashless can help us save many trees that are being cut down for the sole purpose of manufacturing notes. In other words, it is an eco - friendly move.

Boost to 'Digital India' campaign

Cashless economy can boost up the 'Digital India' campaign to a great extent and can help India to progress at a lightning speed.

Eviction of fake currencies

The big, bad business of fake currencies would be at stake if India decides to go cashless, as you cannot imagine an omelet without an egg

Problem of change

Imagine yourself in a vegetable market. You want to buy some vegetables. You have currencies of big denominations only, but the shopkeeper refuses to accept it because he cannot give you back the change. The only solution to this problem is to pull out your Smartphone out of your pocket and do the needful.

Availing Discounts and offers

Some offices do offer its customers a certain rate of discount if the payment is made through debit cards. Some other firms gift their customers with discount tickets and other such things on every cashless transaction. So, we can save a lot of money if we choose to go cashless

Though cashless economy is an excellent step towards development, there still remains some serious loopholes, which are indeed very lethal to the society. Some f those are as follows.

DEMERITS

India's poor literacy rate

According to 2011 census, the literacy rate of India is only 74%, which is very low as compared to most of the developed nations across the globe. This can act as a major hurdle in the way of making India cashless.

Lack of awareness

Most of the people in the rural areas are not even aware of the concept of cashless economy. This is due to their lack of exposure to the outside world. Implementing a scheme such as this, would create a great chaos in the country especially in the rural areas.

Cyber hacking

Cyber hacking is one of the biggest threats that haunts the scheme of cashless economy. There have been many instances where a person's personal bank details has been hacked and used for ill purposes. We cannot rely on the technology much. Though technology is progressing every moment, still there remain some loopholes which the hackers are sure to target.

Increase in Unemployment

India adopting the concept of cashless economy can create vacancies for new professionals. But it has a dark side too. It can lead to an increase in unemployment. For example people working in the mints working in mints and note press.

We cannot fully rely on technology for all of our daily needs. Technology can betray us too. Suppose we went to the market to buy something, but unfortunately our Smartphone starts to malfunction. All we can do at that point of time is to return home empty handed.

These are some of the merits and demerits of cashless economy. The world is progressing at a lightning speed. In order to cope up with this pace, India desperately needs some serious steps which will help her grow at a faster rate. Cashless economy is one of such steps which must be adopted to achieve that goal. Cashless economy thus can be termed as the "road to the future ".

-WAQAR MEHDI