No rise in cash withdrawals after RBI removed limits. Is India moving towards cashless transactions?

An RBI report states that there was no surge in cash withdrawals after the RBI abolished all limits on March 13.

A study by the State Bank of India (SBI) shows that there was no actual rise in cash withdrawals after the RBI abolished all limits on it.

The study states that demonetisation may end up permanently eroding about Rs 1.7 lakh crore worth cash from the system, which is equivalent to about 1.1 per cent of GDP.

It reveals that there was no surge in cash withdrawals after the RBI abolished all limits on March 13.

"In a span of one week (i.e. between March 17-24), cash withdrawal has declined by Rs 20 billion (Rs 2,000 crore)," reads the SBI research.

WHAT DOES THE REPORT SAY

The RBI data says that cash withdrawals dropped drastically after 50 days of note ban (From November 10 - December 30).

It reached a peak of Rs 52800 crore on the January 13 weekend, but came down to Rs 32500 crore during the March 24 weekend, said the report.

In March 2017, RBI lifted all restrictions on cash withdrawals and the government said that new legal tender worth over Rs 10 lakh crore will be remonetised into the banking system by January 2017.

If such reports are to be believed, then India is fast veering towards cashless transactions post demonetisation.

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