In a world that is going digital, cash is still king | AGS India

In a world that is going digital, cash is still king - AGS India Even though digital payments are on the rise, cash continues to hold its throne. In an economy like ours, we are likely to continue witnessing the coexistence of both cash & digital payments. The Indian economy has been in a constant state of evolution. From using precious metals, cowrie shells, and currency notes to now intangible payment modes such as cards, BHIM UPI, QR codes, and RFID – the payment landscape is evolving at a rapid pace. However, one mode that has stood the test of time is cash. While India has predominantly been a cash-intensive economy, two events may have challenged the status quo – Demonetisation & Covid-19. They brought about a change in people’s payment habits. Before demonetisation, digital payments were very nascent in India. In just a matter of few years, digital payments have gained extraordinary growth, with the volume of transactions increasing at a CAGR of 36%. Interestingly, cash in circulation is also now about 14.5% of GDP. According to the data released by RBI, ahead of Diwali, the currency with public rose by Rs 15,582 crore. On a year-on-year basis, it has increased by Rs 2.21 lakh crore. This is an indicator that despite the rising demand for digital transactions, cash has still seen an upward curve. Let us look at various reasons for this increase: 65.07% of Indians still reside in rural areas India is a country with a wide customer base coming from urban, semi-urban, and rural areas. Interestingly, the rural population constitutes over 65% of the