The Hungama of Cashless economy seems to be over and the people in the country are getting back to their old habit of using cash for daily transactions. In Hyderabad, Card Transactions have decreased by 7% when compared to that of the Demonetization time.
Retailers have been charging 2% to 5% on Card Payments which is pushing back the customers to Cash. With the introduction of GST, some of the retailers are offering No Tax if the payments are paid through cash and so these transactions are expected to increase further.
Retailers are saying that they can not offer Card Transactions for free since the banks themselves are charging them 2-3% as Processing Fee for facilitating the transactions. They say they have bore the loss during the Demonetization to keep their businesses moving.
