Rise in online payments: RBI
The Reserve Bank of India on Monday said it will strive to make digital payments a divine experience for the users. This comes at a time when there has been over Rs 3.5 lakh crore reduction in the notes in circulation (NIC) post demonetisation and an increase in online payments growing at a rate of 61% and 19% in terms of volume and value, respectively over the past five years. an active growth in GDP brought down the cash in circulation as a percentage of GDP to 8.7% in 2016-17.
However, the central bank clarified that “Cash still rules but is increasingly seen as a way to store value as an economic asset rather than to make payments.”
About 4 years ago in November’16, the government had demonetised the prevailing high value denomination notes of Rs 500 and Rs 1000 in November 2016 with an aim to check black money and transit towards a less cash economy.