Though the economy has seen a significant pace of digitalisation in payment methods, cash still has a significant share as nearly one in every four Indians used cash for over 25 per cent of their monthly household purchases in the past 12 months, according to a Business Report report quoting a survey by LocalCircles found.
According to the survey, about 56 per cent of the respondents said about 5-25 per cent of their monthly household purchases in the past 12 months were transacted in cash and without a receipt. However, it said 15 per cent did not use any cash for these purchases.
Among the top categories paid in cash during the period were salaries to domestic staff, home repairs, travel, and personal services, according to the survey.
According to the survey, 15 per cent of resident paid over half of the value of a property transaction in cash in the past 7 years. About 18 per cent paid around 18 per cent in cash during the property transaction in 7 years.
Separately, CMS Info Systems in its “India Cash Vibrancy Report 2023” said monthly ATM cash withdrawals using debit cards have jumped over 235 per cent since the Centre announced the demonetisation exercise in November 2016.
It said as compared to Rs 84,934 crore withdrawn in December 2016, Rs 2.85 trillion were withdrawn in March 2023.
The withdrawals in March are 121.33 per cent and 40.88 per cent higher than the withdrawals values of April 2020 and May 2021, respectively.
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