“Cash usage declines as the country becomes richer,” says the latest RBI report. However, the cash in circulation surged to Rs 21.16 lakh crore in June 2019, which is over 24 per cent more than the cash present in the system just before demonetisation in October 2016.
Cash in India has grown fast since demonetisation, but digital payments have grown faster. However, it’s the use of credit cards and debit cards which has failed to keep up the pace with the changing times, going by the latest RBI data. “Cash usage declines as the country becomes richer,” says the latest RBI report. However, the cash in circulation surged to Rs 21.16 lakh crore in June 2019, which is over 24 per cent more than the cash present in the system just before demonetisation in October 2016.
Notably, one of the objectives of the demonetisation was to decrease the usage of cash and to boost digital payments in the economy. Since demonetisation, digital payments have grown by about 34 per cent, however, the growth in usage of debit and credit cards at POS terminals has declined in the post-demonetisation period, says the RBI report.
The central bank says that the wider adoption of digital payments depends on many factors like robust payments system infrastructure, reduced cost of e-payments, the introduction of new and innovative schemes to attract consumers, push to greater financial literacy, bank accounts and strong consumer demand for e-payments because of convenience, safety and add-on benefits.
Source: Financial Express
