Cash withdrawals from ATMs have increased over the past five years: Reserve Bank

Mumbai, Ta. February 25, 2020, Tuesday

The Reserve Bank of India (RBI) meeting was held on Monday. At this meeting, a statement was made that Cash is King But Digital is Divine (cash transaction is like a king, but online transactions are divine) to increase online payment, increase digital transactions. The prevalence of this formula will be increased in the coming days. The bank said that cash withdrawals from ATMs have increased in the last five years.

On the one hand, the central government is striving to reduce cash consumption through digital India scheme and increase online transactions. Various schemes are underway for the advancement of Digital India.

In the wake of this, the government's bank provided this shocking information. The bank said that India is the largest cash withdrawal company at ATMs after China. The bank also made it clear that cash withdrawals from ATMs are at a rate of 17 per cent, with no significant ups and downs.

Asked about the cash flows after bankruptcy in India, the bank said that in 2015-16, 12.1 per cent of GDP currency notes were circulating in the country. That dropped to 11.2 percent in 2018-19. The currency notes, which were more than 26 lakh crore in the economy, have dropped to 22 lakh crore.

Digital payments, on the other hand, are also on the rise. The proportion of online money transfers has increased by 42 percent. So the amount kept in digital wallets has also increased by 78%.