Cash Withdrawals Up In Last 5 Years – Free PDF Download

• The central bank released the report titled- ‘Assessment of the progaress of digitisation from  cash to electronic’
• Cash withdrawals from ATMs in India increased  over the past five years.
• India is next only to China in terms of cash  withdrawals from ATMs.

• Over the last five years,
• The demand for high value denominated currency has  outpaced low value denominated currency.
• This indicate that cash is increasingly used as a store of  value and less for making payments.

CURRENCY IN CIRCULATION

• Currency in circulation as a percentage of GDP  was at 11.2% in 2018-19, lower than the 12.1% in 2015-16.

• Between October 2014 and October 2016,
• Notes in circulation (CIC minus coins in circulation)  increased at an average rate of 14%.
• The same rate of growth would have taken notes in  circulation to Rs 26.04 lakh crore.
• The actual level of notes in circulation was about Rs 3.5  lakh crore lower.

DIGITAL PAYMENTS GAIN TRACTION

• The digital payments in the country have  witnessed a compounded annual growth rate of  61% & 19%
• in terms of volume and value, respectively over  the past 5 years.

• An independent report by Credit Suisse had also  commented that, 72% of transactions are being carried out by cash  in India.
• In China it is just half of this.

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