Special Story On Use Of Cash: Do You Know What “Feel My Cash” Means? Have: Ever heard of the concept ‘Feel My Cash’ before? Even though it has been six years since the demonetization of big notes in our country, even though digital payments are increasing, people are still using cash at record levels. They say the reason is ‘personal’. They say ‘Feel My Cash’ like the song ‘Feel My Love from the movie Arya. It is said that having money in a bank account is different from having it in hand. It is said that ‘Feel My Cash’ means having money with us.
It can be said that ‘personal’ is also a reason why there is so much demand for cash in our country. If you have money in your hand or pocket, you can make the payment immediately. Same.. if you on the phone. there will be unexpected interruptions while making payments. Mobile may not receive signals. May run out of data. Otherwise, the QR code may not work. Merchants may not accept online payments. You can ask for cash. There are so many difficulties if you want to make mobile payments. These break the concept of ‘feel my cash’.
Even though it has been six months since the demonetization of big notes, the cash in circulation in our country is increasing. With this, there is an opinion that the demonetization process has failed to reach the target. Due to the cancellation of old notes, the hardships faced by lakhs of people to exchange them for new notes is truly indescribable. This decision, implemented unexpectedly by the Reserve Bank of India and the central government, crippled the economy.
Meanwhile, a community-led social media platform called Local Circles has conducted a survey to find out the current level of cash usage in our country. Around 32 thousand opinions were collected in 342 districts across the country. 44 percent of those who participated in the study said that they had partially paid cash for the properties they bought in the last seven years. He criticized that there are zero reforms in property transactions, hence bribery and corruption are rampant.
Property owners complete the land or property transaction through cash payments to avoid paying full taxes. In the fortnight that ended on the 21st of this month.. the cash in the hands of the people was recorded at a record level of 30 point eight eight lakh crores. This data is released by RBI itself. This is a 72 percent increase compared to November 4, 2016. Less than six years ago the cash in use was only about 18 lakh crores. There is another reason for the increase in the use of cash in our country.
Due to the imposition of lockdown in the background of Corona two years ago, the public could not go to the ATMs for cash, again and again, so they brought a large amount of cash and kept it nearby. This automatically led to an increase in cash in circulation. People in rural districts and small towns used to make cash payments for purchasing essentials. They didn’t turn to online payments in the wake of Covid. Nowadays people are using cash more and more, so it is not to be expected that the number of digital payments is going down.
Because.. in recent times digital payments are gradually increasing and not falling. Neither the number of transactions nor the value of transactions has decreased. At the same time. there is growth in the ratio of cash in circulation to GDP. This is possible due to overall economic growth. The digital payments document released by RBI in 2019 reveals this. The RBI said that an increase in the digital payments to GDP ratio over a given period of time does not necessarily indicate a decline in the country’s currency-to-GDP ratio.