BrahMos WORLD INDIA MADHYA PRADESH BHOPAL WTN SPECIAL Astrology GOSSIP CORNER SPORTS BUSINESS FUN FACTS ENTERTAINMENT LIFESTYLE TRAVEL ART & LITERATURE SCIENCE & TECHNOLOGY HEALTH EDUCATION DIASPORA OPINION & INTERVIEW RECIPES DRINKS FUNNY VIDEOS VIRAL ON WEB PICTURE STORIES
WTN HINDI ABOUT US PRIVACY POLICY SITEMAP CONTACT US
logo
Breaking News

Modi government proved to be unsuccessful in promoting the cashless transactions after the demonetization

Tuesday - February 12, 2019 4:46 pm , Category : WTN SPECIAL
Decrease in the digital transaction after November, 2016; increase in the withdrawals from ATMs
Decrease in the digital transaction after November, 2016; increase in the withdrawals from ATMs

Modi Government falls behind in the growth target of the cashless transitions

FEB 12 (WTN) - It was being said that after the demonetization, the digital transactions will be increased in the country, so that the purchasing can be monitored; but instead in the increasing in the digital transaction, it has been declined. According to the information, the number of debit cards increased by about 30 per cent after the demonetization, but a decrease in the digital transactions has been recorded. According to the RBI, about 9.36 per cent decreasing in the digital transactions and about 6.87 per cent decreasing in the amount has been recorded.

After the demonetization, it was said that the withdrawal of the cash from the debit card would be reduced, but it did not happen and the withdrawal of the cash from the debit card was seen very fast. As you know, the demonetization was imposed on 8th November, 2016 from 12 mid night; but at that time, POS machines i.e. Point of Sale machines were low due to that the digital transactions were not being in excess.

After the demonetization, Modi government had made several attempts to promote the digital transactions. It was only after the demonetization, that the people of this country could know the fact that the debit card can be used in the digital payment in addition of withdrawing money from the ATMs. Although the government did a lot of efforts in promoting digital transactions, but there was confusion amid the people that there would be the transaction tax charge and hence there was a reduction in the digital transaction.

After the demonetization, the numbers of debit cards have increased nearly 30 per cent in the country. According to the Reserve Bank of India; debit cards were issued by 56 banks in the country in December, 2016, and at that time, the numbers of debit cards were 76.44 crores. Almost two years later; in November 2018, 66 banks issued 99.24 crore debit cards. That is, during these 23 months, 29.82 per cent debit cards i.e. 22.79   million debit cards have increased.

It was being said that after the demonetization, the purchasing through the POS machines would be increased, but it did not happen. But from December, 2016, debit card purchasing through the POS machines recorded a decreasing. In December, 2016, the transactions from the POS machine were 41.54 million times, while in November, 2018, the number of transactions from the POS machine dropped from Rs 41.54 crore to Rs 37.65 crore. In terms of rupees, in December, 2016, there was transaction of Rs 58,031 crore through the POS machines; while in November, 2018, the purchasing through the POS machines decreased by 6.87 per cent to Rs 54,041 crore.

Where there was a decrease in the digital transaction after the demonetization on one side, but o the other side, there was increasing in the withdrawal of money from the debit cards through the ATMs. In December 2016, Rs 84,934 crore from ATMs through debit cards was withdrawn from 63.04 million times; in November, 2018, Rs 2,77,868 crore was withdrawn from 83.89 crore times. Figures clearly indicate that there was increase of 33.06 per cent in the ATM withdrawals, while during the same period, 227.15 per cent more funds were withdrawn from the ATMs. However, there has been a decrease in the number of ATMs both onsite and offsite.

That is, if the RBI data is taken into consideration then it is clear that all efforts of the digital transaction of the government have proved unsuccessful. It was being said that due to lack of cash after the demonetization, people will be inclined towards digital transition, but statistics shows that after the demonetization, there was a decrease of 9.36 per cent in the digital transactions, while there was 33.06 per cent growth was recorded through the ATM withdrawal.

It can be said that after the demonetization, the control on the black money and keeping the view on the purchases were the goal of the digital transaction and it was kept in the mind, but Modi government has proved to be completely unsuccessful in fulfilling it.