India’s Cash Revival
Aug 2, 2024
Spending is on the rise in India, and so too is cash. ATM withdrawals were up 5.5 percent between April 2023 and March 2024, accelerating later in the period to a 7.2 percent increase over the previous year.
Market Brew cites a report from CMS Info Systems, the nation’s largest cash management company, and adds that metro cities are leading this return to cash, with a 10.4 percent increase in average cash withdrawn. Semi-urban and rural areas, which are already typically higher users of cash, saw an increase of 3.7 percent.
Cash remains king during festivals in India. Despite the rise of digital payments, ATM, cash withdrawals surged by 29 percent during the Diwali week compared to the previous week. This surpasses the growth in UPI and IMPS transactions (5 percent) and contrasts with a 4 percent decline in credit and debit card transactions.
Market Brew
The article suggests ‘the pandemic has further fuelled this preference for cash’ as people sought the certainty and reliability of physical money. As in many countries, ‘cash remains a preferred store of value for many Indians’.
In a nation where millions remain below the poverty line, cash retains its crown, yet digital transactions emerge as a formidable queen. Striking a fine balance between the two is paramount for financial inclusivity and progress.
Market Brew
Last Updated: Aug 2, 2024