With currency supply easing 100 days after demonetisation, some customers are returning to cash even as digital transactions begin to drop off from peak levels seen in December 2016.Also, while card acceptance has picked up in several retail outlets, kirana stores and restaurants continue to resist digitisation of payments, says a survey.
According to SBI chairman Arundhati Bhattacharya, adoption of digital channels has slowed down as cash situation is normalising. “There has been a fall in digital transactions in recent weeks, but it is higher than what it was predemonetisation,“ she said. She added that loan demand continued to be low in January following demonetisation, but she expected things to improve by next month.
Latest data from the RBI shows that around Rs 8.5 lakh crore, which is nearly 55% of the Rs 15.5 lakh crore, has been remonetised following withdrawal from banks.Banks expect deposits to stabilise soon, as large value of transactions have moved to electronic channels.
According to sources in card companies, the usage of cards for low-value transactions have dropped as people are returning to cash, but debit card transactions continue to be high and are expected to soon overtake credit cards in value.
A survey jointly undertaken by Deloitte and Confederation of Indian Industry shows that there has been a twofold growth in the use of point of sales (PoS) terminals and mobile wallet transactions post-demonetisation.
The survey revealed that petrol pumps recorded 100% acceptance of digital payments. At the other end of the spectrum were grocery and kirana stores, where only 20% and 15% of outlets accepted card payments.
29 Sep 2020
30 Sep 2020