Know how much cash and digital transactions increased in 5 years of demonetisation, what is the condition of the country at this time?

5 Years of Demonetisation: The central government had banned 500 and 1000 rupee notes in the country on November 8, 2016, 5 years ago to curb black money, but even after the nationwide demonetisation, the cash flow continues. Cash remains king in the country even today. In the year 2016, the circulation currency was about Rs 16 lakh crore, which has almost doubled to 29 lakh crore in the year 2021. Talking about the currency circulation ratio, this ratio was 11.6 percent in the financial year 2016 which has increased to 14.5 percent in the financial year 2021.

Cash flow increased in times of pandemic
During the nationwide epidemic, people needed more cash to help families and pay hospitals, after which people again started keeping cash in hand.

Cash inflow increased by 64 percent
According to the data released by the Reserve Bank of India, on November 4, 2016, the notes in circulation were around Rs 17.74 lakh crore. Which increased to Rs 29.17 lakh crore by October 29, 2021. There has been a total increase of 64 percent in this.

There has also been an increase in digital transactions
On the fifth anniversary of demonetisation, all modes of digital payment have seen a boom. Be it UPI, credit and debit cards or FASTag, everyone has boomed. This shows that along with cash, digital transactions are also increasing rapidly.

RBI’s index also increased
Digital payments have seen a nearly three-fold increase since FY18. The Reserve Bank of India’s (RBI) Digital Payments Index, which has a base year of 2018, has also increased from 100 to 270. Digital payment accounts are included in this index.

Cash usage increased in festive season
In this festive season starting from Dussehra, there has been a surge in the demand for cash and cash transactions in India. Historically, the demand for cash has been high during the festive season as many merchants depend on cash payments for end-to-end transactions. The demand for cash has increased this festive season as people have been seen primarily buying jewelry using cash and hence paying for purchases on e-commerce portals like Amazon and Flipkart.

how much is cic
Let us tell you that Japan and Hong Kong have a CIC of more than 21 percent of GDP, while Singapore has more than 12 percent and the United States has about 10 percent.

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