New Delhi: For the first time in 20 years, there was a significant fall in the volume of currency in circulation during this year’s popular Diwali week, NDTV reported citing studies.
The Indian cash-led economy has evolved to a smartphone-led payment economy as a result of technological advancements over the years, according to SBI Research’s most recent Ecowrap research.
“The success of the digital journey is primarily due to the relentless push by the government to formalize and digitalize the economy. Further, the interoperable payments systems like UPI, Wallets and PPIs have made it simple and cheaper to transfer money digitally, even for those who don’t have bank accounts,” the report authored by Group Chief Economic Advisor Soumya Kanti Ghosh said.
“Over the years, the system has expanded rapidly with new innovations like QR code, NFC etc., and has also seen the swift entry of big tech firms in this industry,” Ghosh added.
According to the research, the surge in digital payments benefits both the RBI and the government because it reduces the need for currency and lowers seignorage costs.
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