If Demonetization is announced to move India towards Cash-less or Less-Cash economy, it is not happening. The digital transactions which were higher during the period of demonetizations are on a decline with cash crunch easing. This was revealed by the Reserve Bank of India’s representative data of electronic payment systems.
According to the data, there were 100 million fewer transactions in February 2017 compared to December 2016 at the point of sale (PoS) counters through bank cards. The increasing availability of cash and taxes levied on card transactions has led to people to leave back the digital transactions and get back to their old ways.
Mobile transactions have also seen a sharp decline from 70 million transactions in December 2016, to 55 million transactions in February 2017. Wallet transactions have also witnessed a 20 percent decline during the same period. It’s high time the government does something about this.
