What is a potential disadvantage of digital transactions?

The correct answer is option 4- Dependence on internet connectivity.

Dependence on internet connectivity is a potential disadvantage of digital transactions.

Demonetisation is to create a less-cash or cash-lite economy, i.e., channeling more savings through the formal financial system and improving tax compliance. Though there are arguments against this as digital transactions require use of cell phones for customers and Point-of-Sale (PoS) machines for merchants, which will only work if there is internet connectivity.