Cashless Economy-

 

Online transactions with any indulgence of cash is termed as cashless economy.

In India the cashless economy got its fame after the announcement of demonetisation. Probe minister Narendra Modi on November 8th 2016 took this decision of demonetisation of 500 and 1000 notes.

 

Cashless economy was also practiced in the ancient era in the form of barter system. Cash/currencies were never used rather people exchange things and goods .

 

Advantages of Cashless Economy-

 

• Cashless economy decreases the accumulation of black money and provides liquidity of transactions.
• Plunder and related crimes have been drastically decreased due to acceptance of a cashless economy.
• Tax evasions are encountered by the cashless transaction methods.
• There’s a certain 45% impact on GDP due to an unceremonious economy.
• The informal sectors are now transforming into the formal sectors, all thanks to the cashless economy.
• Digital literacy is increasing day by day due to the cashless economy. It also decreases the generating cost of currency and notes.
• Tourists will not have to scramble to fetch for the money,rather they can depend on cashless modes for money transactions.
• Corruption and commissions will be diminished completely by adapting to a cashless economy.
• Digital payments prevent people from getting looted by usage of fake currencies by some unethical people.
• Benefits of subsidiaries and developmental schemes can be used without withdrawal of money. And will be employed out-rightly, which will eventually diminish the discomfort.
• Great employment opportunities can be provided in banking and software companies by adapting the cashless mode of economy.
• Money can be saved by using several online payment apps like phone pay, Google play,etc which provide several cashback’s and offers.
• Cashless economy benefits by magnetizing several national and international investors

 

Disadvantages of Cashless Economy-

 

• IMPS transactions are imposed by partial service charges, these charges can be prevented by cash.
• People are used to using cash in all their day to day activities.
• A large section of Indians are illiterate thus are devoid of using the cashless economy.
• Cashless economy has also led to unemployment. Elucidations of some surveys show that India had lost around 70,000 jobs. The blue collar jobs are highly affected by the cashless economy.
• Cashless economy will also lead to the gradual increase in the cyber crimes and online/net banking frauds.Indian population is less aware of the cyber-crime consciousness.
• The online cashless infrastructure will be very weak in a densely populated country like India and it would be tough to maintain.
• Digital illiterates will be robbed by the frauds and scammers. And the poor, uneducated village people will be more in their trap.
• Getting scammed is cunning in India. Adapting the cashless economy won’t be that beneficial.

 

Status of Cashless Economy in foreign country-

 

• The Cashless Economy is dominated in foreign countries like Belgium, France,and Canada.
• The United Kingdom, Sweden, Australia, Netherlands, and the US also use the online mode of payments for more than 80% of their transactions.
• In Germany 76% transactions are via cashless mode only.
• Cashless is the prime mode of payment by consumers in South Korea, Asian country.

 

Cashless economy is really good to adopt. But for a country like India more digital literacy is required to be improved. Cyber security should be kept mandatory. New laws and regulations should be employed by the government of India to provide safer online transactions  so as to prevent the state of cyber crimes . Net banking should be used discreetly.