The cashless economy is one in which transactions are carried out by cards and digital means. Physical currency is used minimal. India has the highest cash transaction that leads to corruption and hiding of black money.
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.
India's ratio to cash of the gross domestic product is sixth highest in the world. Less than 5% of payments happen electronically but what about other 95%
Well talking about the merits there is lot to write about it but with merits demerits go hand in hand. Merits of the cashless economy concept are very positive and it also covers all the aspects of developments.
Very first of all there will be no place for terrorism and criminality. It will be helpful to environment, as fewer trees will be cut down to produce paper money. Trails of every transaction will be left behind. No chances of fake currencies.
Availability of bank will be universal.The rates of houses and properties will come down as maximum of black money is invested in real estate and cashless economy will make a drastic change to this field
Reduced costs of operating ATMs Speed and satisfaction of operations for customers, no delays and queues, no interactions with bank staff required. And much more to write about it.
Demerits are actually the challenges that would be faced by government for bringing up such a big change not only in our day to day living but also in the habits of people of the country.
The demerits of the cashless economy will be that society will be left with no hard cash in their hand. Sudden or quick payments cannot be done. If in case, the card is lost, stolen or you have forgotten the pin number practically it takes time for the renewal procedure and that may create problem for the person's future transactions.
Last but not least, our India's most of the population lives below poverty line and thus many people survive on small scales industry, daily wages, etc. their family depends upon the money they get and they live on it. Rural area people or illiterate people may not be able to use these digital banking services, what are they supposed to do This may lead to discontent among the masses.
The idea of cashless economy is wonderful and everyone is satisfied with the thought of corruption getting washed from this concept but with this we must also think about poor and illiterate people of our country too. These advancements will either bring development or it will bring a disaster