According to the latest Global Cash Index™, cash continues to hold a significant role in Indian culture, and despite government efforts, it won't cease to do so any time soon. In fact, it is expected to grow!
Even with one of the lowest regional ratios for POS terminals per 100,000 people, cash use in India remains of the highest in the region.
Here are some notable findings from the latest Index:
- India has just six point-of-sale (POS) terminals per 100,000 people, far below the rate of other Asia-Pacific neighbors.
- India spent $1.5 trillion in cash in 2016, far more than any other nation in the region.
- India has four bank branches per 100,000 people, a rate lower than Australia and South Korea, but more than Singapore.
“If you try to force [alternative] solutions down [the] throats of people who are still interested in cash, then sometimes you will have pushback...”
Demonetization was launched in India in an effort to crack down on the nation’s underground economy, boost tax revenues and encourage the transition to a digital banking infrastructure. However, nearly two years after the policy launched in 2016, cash remains a key component of the nation’s economy...Based on current trends, the rate of total cash usage in India is expected to rise at a compound annual growth rate (CAGR) of 10.47 percent from 2016 to 2021.