Essay on Cashless Economy

Essay on Cashless Economy! Find high quality essays on ‘Cashless Economy’ especially written for school, college and university students. These essays will also guide you to learn about the introduction, merits and demerits of cashless economy.

It is a common sight nowadays where people use electronic means to make payments. Digital transactions have become normal for people especially those living in urban areas. Gone are the days when one has to visit a bank to withdraw money. There are ATM machines everywhere which substitute as money vending machines.

There are so many merits of a cashless economy. However, like every other thing, there are demerits as well.

Audience: The below given essays are exclusively written for school students (Class 8, 9, 10, 11 and 12 Standard) and college students. Furthermore, those students preparing for competitive exams like IAS, IPS and UPSC can also increase their knowledge by studying these essays.

List of Essays on Cashless Economy

Essay on Cashless Economy – Short Essay (Essay 1 – 150 Words)

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.

Essay on Cashless Economy – Written in English (Essay 3 – 300 Words)

Introduction:

Cashless economy is an economy which extremely depends on digital transactions or digital cards all over the nation. In a cashless economy, the outflow and inflow of physical money are very marginal.

Why have a Cashless Economy?

In November 2016, an idea of cutting down the black money in the nation was given by Prime Minister of India Mr. Narendra Modi. He blocked the utilization of currency notes of Rs. 500 and Rs. 1000 and presented the new notes of Rs. 2000 notes to the public. With this drastic step, he also introduced the scheme of Cashless economy in the country.

Merits of a Cashless Economy:

1. Cashless Economy results in the digitization that is time-saving and tech savvy.

2. The flow of liquid cash gets reduced with the cashless economy

3. It helps in wiping off the black money from the market

4. Carrying the electronic gadgets and cards is much safe and easy to carry

5. Cashless economy is beneficial for checking the cash transactions.

Demerits of Cashless Economy:

1. The hackers can easily take the whole control of the cashless economy

2. People are not much aware of the concept of the cashless economy which needs more awareness

3. Old age people are not tech savvy which makes it quite tough to teach them about the cashless economy

4. The workload on the banks will get an increase

5. There is lack of internet connectivity in rural areas in our nation which makes it difficult to commence the concept of the cashless economy in every region

Conclusion:

The concept of cashless economy is very useful for curbing out the black money from the nation. The lack of sufficient infrastructure and illiteracy is one of the major hindrances in the path of the cashless economy. But to get its desired results, we need to change ourselves also as the merits of the cashless economy are more than its demerits.

Essay on Cashless Economy – Role in Transforming India (Essay 4 – 400 Words)

Cashless economy is a condition where the flow of cash becomes insignificant and all the personal and commercial money transactions are done digitally. Demonetization is one of the major initiatives by the government looking forward to a cashless economy and digital future. People had to go through many difficulties to overcome the short notice decision; but before blaming the authority we have to know the benefits of cashless economy.

Advantages of Cashless Economy:

The major motive in promoting cashless economy is to wipe away black money to a certain extent. All the illegal activities like immoral trafficking, drug business, smuggling, etc., are done in cash and enabling digital transactions can almost nullify them. Banking and economy system becomes more transparent with the launch of cashless economy and also reduces the chance of fake currencies.

Cashless economy not only benefits country’s status but also ease personal effort and saves time. We need not wait longer in bank queues to make a single transaction; a few clicks over smart phone or computer systems shall do the job safely and quickly. While travelling also, all you have to carry is the debit or credit card; no more carrying wallet or tension of taking cash in pockets.

With the cashless economy, the government gets a clear monitoring facility over money transactions and thus trims down number of tax evasions. Also the public can ensure that the welfare funds allotted to every department is being transferred to eligible beneficiaries as they will be given to personal accounts without a third man interruption. On being cashless economy, Government also will save the cost of printing paper, moneys and coins; the saving can be invested in issuing digital machines needed for retailers and other related purposes.

Disadvantages of Cashless Economy:

Cashless economy is comparatively acceptable for educated and technically knowledgeable ones, whereas the procedures are still unknown for common men. Lack of awareness on how to do digital transactions hassle the normal society. Lesser understanding leads to increased cyber threats and people get trapped to hackers.

Our Role in Transforming India a Cashless Economy:

The first and foremost step as a part of our contribution to cashless economy is changing self. The youth and educated ones can help backward people by giving training on how to manage digital transactions and make them aware of the importance of this transformation. Cashless economy should be a team effort where the government and people should have equal dedication.

Essay on Cashless Economy – For School Students (Class 8, 9, 10, 11 and 12 Standard) (Essay 5 – 450 Words)

Introduction:

‘Cashless Economy’ is a great initiative in India undertaken by the Narendra Modi government. Cashless Economy means reduction in cash transactions and increased use of digital transactions. The Government of India introduced the method of Cashless transactions in November 2016. It started with the demonetization of Rs.500 and Rs.1000 currency notes. This was considered to be a great move to reduce the dependency of cash in India. The sudden announcement of moving into Cashless Economy brought mixed responses from the citizens as well as financial experts.

Let us now analyze the merits and demerits of Cashless Economy in India.

Merits of Cashless Economy:

Implementing Cashless Economy has numerous benefits and it is a great way to develop our economy.

i. The first and most important advantage of going Cashless is that it stops ‘black money’ in the market. When all the transactions are to be made through banking systems, credit and debit cards or through other digital means, there is no way to secretly store money without records.

ii. By implementing Cashless Economy, the country has reduced terror related crimes because black money is mainly used for funding terrorist activities.

iii. Dependency on cash will be much reduced and people need not worry about theft. Extortion and bank robbery will also decline.

iv. Since all transactions become digital, the details of income can be traced and thus income tax payments become mandatory. Thus, Cashless Economy helps in increasing revenue to the Government.

Demerits of Cashless Economy:

Every new initiative will have its share of negative criticism and implementation of Cashless Economy is no exception to that.

i. Though the idea of Cashless Economy is acceptable, the experts feel that before launching such a crucial financial system, the government should have validated whether adequate facilities are in place across the country.

ii. Poor people are the most affected by this plan since they do not have any knowledge on using internet. People in rural areas are mostly illiterates. Most of them are farmers and daily wage workers; expecting them to do digital transactions is meaningless.

iii. Also digital transactions involve sharing of personal information in the internet. In today’s world where cybercrime is at its peak, sharing such information without proper security measures will lead to serious crime.

People’s View on Cashless Economy:

Although there were initial hiccups when demonetization was announced and Cashless Economy was launched, people slowly started making digital payments.

But most of the citizens feel that the government must improve the infrastructure if the plan has to yield its benefit. Many merchant outlets do not support Cashless purchases; how many petty shops accept debit or credit cards? The total ATM machines installed is very less compared to the country’s population. When metro cities face such difficulties, the state of villages is pretty imaginable.

People are ready to accept change if they are guided in a proper way.

Conclusion:

Launch of Cashless Economy has brought about a sea change in Indian economic system. Since digital transactions are easier and faster, people are more interested in doing digital transactions that ever before.

‘Who needs Cash if we can survive with Card?’

Essay on Cashless Economy (Essay 6 – 500 Words)

Introduction:

The term “cashless” literally means a person without cash. However, in the contemporary set up, cashless refers to the digital forms of transactions, where no physical cash is in circulation. Cashless transactions include transactions through credit cards, debit cards, virtual wallets or electronic fund transfer systems by the bank.

Merits:

Cashless economy can reduce, to a greater extent, the cost associated with creating, printing, and transportation of physical cash. Without physical money in hand, the incidents of theft and stealing can be reduced. As the cashless economy works on the self-banking process, the money can’t be hacked by any person without proper credentials. The cashless economy can help the e-commerce to flourish. The E-business can be developed as people from various locations are transacting and nurturing the business.

There will be a downfall in the real estate business. Any illegal money transaction or possession of black money in the market will be curbed if a cashless economy is implemented. Also, the black money stagnated in the hands of politicians can also be traced and brought into account because there will not be any more instances of buying the votes. Thus, it becomes easier to go behind the black money and any illegal or unauthorized transactions, as the whole transactions are recorded in the bank system. This can result in a transparent system of the transaction and it will be easy to fight corruption.

Such an organized transaction can also aid in the increased tax revenues which can be used to develop the country’s economy. The cashless system can also reduce the instances of counterfeit notes. This, as a whole, can prevent terrorism intervening in the country. Printing of the currency notes in India costs close to 30 million per year. Cashless economy can cut down these charges and the government can utilize that money for other social and educational policies.

Demerits:

Being a developing nation, many villages and citizens in India do not even have a valid bank account. Computer illiteracy is higher, thus it prevents electronic transactions. Moreover, the rural locations do not have proper reception of internet on which the whole electronic transactions depend upon. The reach of digital transactions is limited to only urban city centers and hence, it is somewhat difficult to implement the complete cashless economy system in such a big country like India.

As easy as it sounds, it is also risky to do online transactions due to security issues. People with half-baked knowledge are easily exposed to cyber fraudulence activities and lose their money. The growing thirst of becoming rich has made people use crooked ways to earn money. In this line, hi-tech stealing of others’ money by exploiting the loopholes in the cyber world is becoming a major threat.

Additionally, extra charges are levied on the cashless transactions across the counters in any business outlets that people are hesitant to switch over to a completely cashless system. On the other hand, not all shops accept the credit and/or debit cards during a purchase.

Conclusion:

The cashless economy has its own sets of merits and demerits. In huge democratic countries like India, before implementing the system, the government should count into expert opinions to analyze strategically and work on the implementation of such plans for better economic growth in a sustainable way.

Essay on Cashless Economy – For College and University Students (Essay 7 – 600 Words)

Introduction:

Cashless economy has many merits and demerits. It has changed the direction of our country in terms of the economic conditions. It has brought a lot of transparency and ease of cashless payments with it. As with any other technology, this also faces risks of hacking and cyber-attacks. So, there needs to be some measures in place to make the system more secure and safe for use. We have not completely moved to a cashless economy but we have initiated the transition towards a cashless economy.

What is cashless economy?

A cashless economy is a system where there is no circulation of physical cash in the economy. In this system, the payments are made via credit cards, debit cards, electronic fund transfer systems like NEFT or virtual wallets like PayTM.

Merits of Cashless Economy:

There are many benefits of a cashless economy. Some of these benefits include that there is no need to carry wallet anymore, it saves a lot of time and is hassle-free. Use of cashless system also helps in reducing long queues in banks which saves time of both, customer as well as banking professionals. And everyone these days has a smartphone with them so making a transaction in cashless economy is much easier and simpler to do. You can make a large transaction without having to carry loads of money which might not be safe.

There are other benefits that limit illegal activities such as reducing chances of tax evasion, money laundering, lowers threat of counterfeit currency and reduces use of black money. All this makes monitoring of transactions and money movement more easy and manageable for the government and the Revenue Department. As the economy becomes cashless, it is also more cost effective as it lowers the necessity of printing of notes and minting of coins.

Along with all this, the Government has started sending the funds directly to beneficiary’s account so that a middleman is completely avoided. The user gets the money directly and there is no chance of losing money because of corrupt officials and middlemen.

Demerits of Cashless Economy:

Although there are many benefits, there are certain drawbacks of a cashless economy too. With the digital transactions involvement, there is some population that is not as tech savvy as others. It is difficult for them to manage digital payment methods. Even though it is a system of cashless economy, a bank account is a primary requirement. There are many people in the country who do not have a bank account of their own. There is also lack of financial awareness in the people and that leads to their dependence on conventional mode of transactions.

Also, the digital payment systems might not be available at every place as that itself requires some investment on the retailer’s part. An infrastructure of good internet network is also required to make any digital transaction. This is not well established in many rural regions of the country. On user side, there might be some transaction fee levied to the customer in form of internet handling fees and such which is not there in the case of cash transactions.

As it is a digital system, it is prone to cyber-attacks and can be hacked. This makes security a primary concern for any payment system portal. Because of this, it is more risky than traditional cash transactions.

Conclusion:

For this cashless economy system to be well established there needs to be certain challenges that need to be overcome. Some of these include developing adequate infrastructure and making people more aware about such systems. So, even though there are certain demerits, the merits associated with the cashless economy outweigh those.

Essay on Cashless Economy – Long Essay for Competitive Exams like IAS, IPS and UPSC (Essay 8 – 750 Words)

Introduction:

A cashless economy isn’t one where no cash changes hands. Rather, it includes exchanging cash by means of advanced and electronic techniques. In a cashless economy, most of the payments are made using digital modes which do not require cash to be present physically. A cashless economy is the trend of the day and many individuals have now switched over to having most of the transactions online.

History:

A cashless economy is a new concept having being introduced in the 1990s. However, the barter system of earlier times is often referred to as primitive means of a cashless economy when people did not have specific currencies.

Merits of Cashless Economy:

There are many advantages of a cashless economy. First and foremost you need not carry cash all the time with you. At one point it is convenient to just carry a card or an app in your mobile while in the end, it protects you from chances of theft.

Another advantage is that it helps in curbing the black money as the transactions are done electronically and are on record. It makes it easier for the government to monitor transactions where huge sums of money exchange hands.

A cashless economy is more convenient to use. You need not go to the bank and stand in queues to transfer money. Moreover, electronic transactions can be done anywhere, anytime. This reduces the dependency on the banks and makes the payments faster.

The cashless economy has certain advantages for the government as well. Since the cash remains with banks in electronic transactions, there are fewer chances of a cash deficit for the government. Moreover, since the transactions are recorded, it increases in the tax revenue generations as well. This increased revenue is helpful for the government in using it for different policies intended for the betterment of the people.

Additionally, electronic payments ensure that people do not use counterfeit currencies. This reduces the chances of the economy being affected due to the circulation of large fake currencies. This, in turn, helps in the prevention of terrorism as well as most terrorist activities are based on physical cash and counterfeit currencies.

Also, the need for large denomination currencies does not arise if the people switch to electronic payments in large transactions. For the small transaction, coins and smaller currency notes serve the purpose. This reduces the burden on the government to print new currencies.

Demerits of Cashless Economy:

There is the other side of the cashless economy as well. A cashless economy can only be possible if there is proper internet connectivity in the region. This is the basic requirement for any electronic transaction. Given the situation in countries such as India, not all areas have proper internet connectivity. This makes it impossible for the people living in such areas to depend on electronic transactions.

Another disadvantage of cashless economy is that not too many people in India are educated enough to understand the working of an electronic transaction. In fact, many people still do not have bank accounts. However, this situation has improved after the implementation of Jan Dhan Yojna by the government. Still, the concern for lack of information remains. This makes such people vulnerable to cyber-attacks and increases their chances of losing money to e-theft.

Another major disadvantage of this system is the reluctance of people to keep money in the banks. Even today, many people believe in keeping cash with them rather than using a debit or a credit card. It is difficult to make such people understand that electronic payments are in fact safer than physical payment methods.

Another disadvantage is that since physical cash does not change hands, people don’t realise how much they have actually spent in a day. Often this leads to budgetary issues for the people by the end of the month.

Conclusion:

There are advantages as well as disadvantages of a cashless economy. However, with the introduction of safer methods and stricter rules by the government, it is definitely the most sought option as of now. Cashless economy increases the speed at which the money is transferred from one person to another. Moreover, it provides transparency in the transactions as well.

On the other side, it is important for the individuals to follow the security procedures in place such as not sharing the card details with anyone. This is important to ensure no illegal transactions take place and the money remains safe.

On the government’s side, it is important for the government to address the issues related to achieving a proper cashless economy by providing financial education to the people along with better internet services. A cashless economy is definitely an integral part of our financial system now and is here to stay.