New Delhi: India has started liking cash again. Till December, digital transactions were increasing, but with the decline in card payments in January, it is clear that the trend of people is returning to cash payments. Cashless payment has also suffered a major setback due to the increase in the supply of new notes.
If there is no cash, it will run cashless, if there is cash, then only cash will work. This is the message of the people of the country. The data for the last 15 days shows that people are again turning to cash transactions. The increase in digital transactions that was seen after demonetization due to the cash crunch has now been left behind.
It is clear that even 50 days of demonetization could not bring any major change in the habits of the people. According to the data of the Department of Electronics and Information Technology, between November 9 and November 17, more than 28.60 million online transactions were done for 27 services, which started decreasing from the second week of December. And between January 9 and 18, only about 21 crore online transactions were done. According to experts, to promote e-transactions, the government will have to pay attention to some things.
In fact, the exemption on charges for digital transactions till December 30 has been gradually removed by banks and e-wallet companies. This has made digital transactions costlier than cash. Also, now the cache has started increasing in the system. Recently RBI has increased the ATM withdrawal limit from 4500 to 10 thousand rupees. The effect of all this is visible in the form of an increase in cash transactions.
