Indians are withdrawing less cash from ATMs now, opting for digital payments

Indians are withdrawing less cash from ATMs now, opting for digital paymentsThe weekly cash withdrawals have slowed down since demonetisation as people are shifting gears towards digital payments. The cash levels in the Indian economy remained nearly 26% less than what it was before cash ban.

The cash and currency in circulation is 74% of the levels in early November 2016, or 26% less than early November 2016. Then, the currency in circulation was Rs 17.97 lakh crore.

The digital payment mode has also picked up as the United Payments Interface (UPI) saw as surge in March as compared to January.

Advertisement

Presently as per the Reserve Bank of India (RBI), currency in the system is around Rs 13.32 lakh crore as of March 31.

Weekly cash withdrawals too have dipped for the fourth consecutive week from Rs 47,400 crore in the week ended March 10 to Rs 22,194 crore in the week ended March 31.

The number of transactions under UPI for March was 49 lakh in March with value of transactions rising from Rs 1,900 crore to Rs 1,970 crore during the period.

Advertisement
"Currency in circulation may settle at around 10% to 10.5% of the GDP which is in line with international standards,” SK Ghosh, group chief economic advisor, State Bank of India, told ET.