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Despite Government attacks, cash is still king in India





Nearly 83 per cent of the value of total consumer transactions were made with cash in 2018, compared to 87 per cent in 2012.

Cash still rules as the king of payments in India, despite the rising trends of digital payments in recent years, as the aftereffect of demonetisation wears off. Cash in circulation in proportion to GDP has now once again reached a level as high as it was before demonetisation. Nearly 83 per cent of the value of total consumer transactions were made with cash in 2018, compared to 87 per cent in 2012, Capital Economics said in a research note citing RBI data. While it is expected that due to social distancing and the need to stop the spread of coronavirus, cashless payments will rise, but cash will continue to be the main method of payment for a long time yet, the research note added.

Despite various efforts of the government and financial institutions, the number of digital transactions per capita is still very low in India in comparison to other countries. India’s digital payments landscape saw a boom after demonetisation in November 2016, when 86% per cent of the total value of banknotes was discontinued overnight. The incident also suggests that enforced changes in spending behaviour could become permanent if cashless payments have to be increased, the Capital Economics report further said.

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The cashless society from an ethical point of view

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The cashless society from an ethical point of view









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