Cash Is Back, Digital Transactions Slow Down: Report

[The_Showstopper]

Cash Is Back, Digital Transactions Slow Down: Report
Liquidity is creeping back.

• 
  
  AFP/GETTY IMAGES
  
  
  Industry executives say that while card transactions jumped by 30 percent after demonetisation, they, over the past few weeks, have observed that cash is coming back into the system and card payments are tapering off.
  
  
  While it is still early days, the slow down in digital payments could be worrisome to the Modi government, which wants to minimize cash transactions in the country. To this end, the Centre is even considering taxing large cash withdrawals. This "cash tax" could be included in the 2017-2018 budget to be presented on 1 February.
  
  
  Earlier this week, the Reserve Bank of India increased cash withdrawal limit at ATMs to ₹10,000 per day.
  
  READ: Modi Government Is Considering Taxing Your Cash Withdrawals - Report
  
  With the Reserve Bank of India printing more ₹500 notes, there is more liquidity in the system, which allows people to use more cash, The Economic Times reported today. The injection of ₹500 notes have mitigated the problems which people faced in getting change for the new ₹2000 note.
  
  
  "There has been a slowdown in the rate of growth of card based transactions over the last few weeks, but the growth trend still continues to be positive," Lokvir Kapoor, CEO of Pine Labs told ET. "We have seen that small value payments which were being done through card after demonetisation are shifting back to cash with change against Rs 2,000 not being such a major problem anymore."
  
  
  But the cash in circulation had shrunk by 4.3 percent from the previous week, which suggested there was still a paucity of notes, RBI said earlier this week. Currency in circulation has come down from ₹17.9 lakh crores as of 4 November to ₹10.5 lakh crore on 10 December, to ₹9.38 lakh crores on Dec 30, to ₹8.98 lakh crore as of 6 January.
  

http://www.huffingtonpost.in/2017/0...-slow-down-report/?ncid=fcbklnkinhpmg00000001

 

[Abba_Dabba_Jabba]

RBI will keep the total currency value down from the earlier level and the digital transaction will be higher than November 8 level. So the we can expect India's currency to GDP to be much lower than the 8th nov level, it should be reduced by 5%.

So demonetization can be considered as successful in shifting the economy towards less cash.

 

[IndoCarib]

"There has been a slowdown in the rate of growth of card based transactions over the last few weeks, but the growth trend still continues to be positive," Lokvir Kapoor, CEO of Pine Labs

 

[Mitro]

Hawa thire thire niklegi 56" ki [emoji50]

 

[scionoftheindus]

Hawa thire thire niklegi 56" ki [emoji50]

I am also sad...What purpose did the ban actually serve?I don't question the motives or intentions of modi but he should have taken a bit more care while taking a decision of such a huge scale

 

[The_Showstopper]

"There has been a slowdown in the rate of growth of card based transactions over the last few weeks, but the growth trend still continues to be positive," Lokvir Kapoor, CEO of Pine Labs

India's run as the world's fastest-growing major economy has ended thanks to its self-imposed cash crisis

Source: http://money.cnn.com/2017/01/16/news/india/imf-world-economic-outlook-india-china/index.html

 

[CBU-105]

I'm very happy to be back to normal (99% cash transactions) for regular daily retail stuff and small payments etc, it'll be interesting to see how it plays out long term in real estate, keeping an open mind but still a retarded move which so far hasn't accomplished anything but made life inconvenient for normal people, let's see though..

 

[IndoCarib]

India's run as the world's fastest-growing major economy has ended thanks to its self-imposed cash crisis

Source: http://money.cnn.com/2017/01/16/news/india/imf-world-economic-outlook-india-china/index.html

But it also anticipates an eventual Indian recovery, forecasting that the economy will return to 7.2% growth in 2017 and 7.7% in 2018.

sorry to burst your balloon

 

[The_Showstopper]

But it also anticipates an eventual Indian recovery, forecasting that the economy will return to 7.2% growth in 2017 and 7.7% in 2018.

sorry to burst your balloon

Why did it fall in the first place? Bhakts always amaze me

 

[IndoCarib]

Why did it fall in the first place? Bhakts always amaze me

It fell bcoz of noteban. You don't have to be Einstein to know that. It will bounce back strongly.

 

[The_Showstopper]

It fell bcoz of noteban. You don't have to be Einstein to know that. It bounce back strongly.

Strongly? Naah doesn't look so...

IMF downgrades India's growth estimate after demonetisation, upgrades China | business-news | Hindustan Times

Source: http://www.hindustantimes.com/busin...rades-china/story-3Qvtjo8veUZtllmUFaDb3I.html