Importance of the services related to electronic cash
The following advantages can be achieved by using electronic cash for the transactions.
# Instantaneity - The services related to electronic cash are efficient and methodical. Since all
activities are performed via electronic media, banks and customers can
save time by doing their activities easily and quickly.
# Minimizing the risk - The risk of losing cash while carrying it is reduced due to these services.
# Recording information automatically - Since all activities are performed automatically, transactions are recorded
easily and accurately.
# Ability to transact at any time of the day.
Limitations of services related to electronic cash
# Risk of data being destroyed
Problems can arise due to the risk of data being destroyed as a result of
technical errors.
# Risk of being exposed to new types of electronic frauds.
Example :-
A person can use personal Identification Number (PIN) of another
person fraudulently to do transactions.
# Incurring an extra cost
When the payments for a credit card are delayed, a penalty for delayed
payments and high interest rates will be charged.
# Inability to use for payments at certain shops.
