This is the first time in two decades that cash usage has come down during the festive season. This trend has been shown by people preferring digital payments for payments
reduce cash use
Digital Payment: By Government of India digital payments Now with promotion cash But the dependence of the people is decreasing. Clear signs of this have been seen in the last festive season. During this, the use of cash has seen a decline for the first time in two decades. In other words, this year people have increased the use of digital payment to buy goods compared to last year and reduced the use of cash. this information SB I given in a report by Economists.
Cash usage decreased in festive season
This year, the cash in circulation (CIC) of the system decreased by Rs 7,600 crore in the week of Diwali. For the first time in two decades this has happened. Bank notes and coins etc. come in CIC. SBI economists report said that this happened due to the popularity of digital payments among the people. The report also said that the Indian economy is going through a major transformation at this time.
According to the report, there was a marginal drop of Rs 950 crore in cash in the system during the Diwali week in 2009, but this was due to the economic slowdown in the midst of the global financial crisis. Economists said that technological innovation has changed the Indian payment system. Indian economy is no longer cash based but has shifted to smartphone based payments. He said that cash flow in the system is beneficial for the banks.
Why is the use of cash decreasing?
The main reason for the decline in the use of cash and the increase in digital payments is the ease of digital transactions, its convenience and increased trust in it. At present, all the big shops and purchases of the country are giving priority to digital transactions. At the same time, due to the increase in the trend of payment through mobile, street vendors are also easily accepting it. Due to less hassle of carrying cash and ease of payment, people are now making digital payments instead of cash.
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