Write any four limitations of cashless transactions.

1.	Write any four limitations of cashless transactions.
Answer» Following are the four limitations of cashless transactions : 1. Problem for illiterate class : The largest problem proceeding ahead towards a cashless economy is the existence of a big population of illiterate and less educated people. This limits its advantages. 2. Lack of banking habits: It is an important economic problem of developing countries that people do not have banking habits. 3. Apprehension of fraud : Due to apprehension of fraud, people avoid cashless transactions. If they keep their password confidential, fraud is almost impossible. 4. Limited expansion of banking facilities : In a large economy like India, limited expansion of banking facilities is also a huge hurdle in the implementation of cashless transactions.

Answer»

Following are the four limitations of cashless transactions :

1. Problem for illiterate class : The largest problem proceeding ahead towards a cashless economy is the existence of a big population of illiterate and less educated people. This limits its advantages.

2. Lack of banking habits: It is an important economic problem of developing countries that people do not have banking habits.

3. Apprehension of fraud : Due to apprehension of fraud, people avoid cashless transactions. If they keep their password confidential, fraud is almost impossible.

4. Limited expansion of banking facilities : In a large economy like India, limited expansion of banking facilities is also a huge hurdle in the implementation of cashless transactions.

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