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.
