ATM Cash Withdrawals Rises By 235 Per Cent After Demonetisation Done In Year 2016 See Details

There is a saying in English, ‘cash is king’. It is often used to criticize new means of payment. It is believed that less tech savvy and old fashioned people prefer cash. However, new figures present a contrary picture. Even though digital payment has increased rapidly in the country, but along with it the use of cash has also increased a lot.

The use of cash has increased so much

In an ET news report, CMS Infosystems, a banking logistics and technology service provider, has been quoted as saying that the use of cash has increased rapidly since demonetisation in the country. Demonetisation was done in India in November 2016 and then the prevailing notes of Rs 500 and Rs 1000 were put out of circulation. After that digital payment has got a big boost. One of the objectives of demonetisation was also to discourage cash transactions. However, statistics show that there has been a jump of 235 per cent in cash withdrawals from ATMs since demonetisation.

These states are withdrawing more cash from ATMs

According to statistics, by the end of March 2023, 76 months after demonetisation, the number of cash withdrawals from ATMs has increased by 235 per cent to reach Rs 2.84 lakh crore. The company said that there was a 16.6 per cent increase in cash filling in ATMs by it during the financial year 2022-23. States like Maharashtra, Gujarat, Tamil Nadu, Karnataka and Uttar Pradesh are ahead in this matter. Together, these states contributed more than 43 per cent to the total cash dispensed in ATMs.

This is how digital transactions have increased

On the other hand, along with this, tremendous speed has been recorded in digital transactions. Reserve Bank Governor Shaktikanta Das gave this information in a program on Wednesday. According to the RBI governor, in the year 2016, where around 2.28 crore digital transactions were taking place every day across the country, now their number has increased to 38 crore. At present, an average of 37.75 crore digital transactions are taking place in the country every day and UPI has the highest share in these. About 29.5 crore digital transactions are being completed everyday through UPI alone.

These figures show that even though digital transactions have increased a lot in the six years period from demonetisation to demonetisation, there has been no decrease in the use of cash, in fact transactions in cash have also increased during this period.

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