Letter to BS: India continues to have a strong bias for cash payments

The frequent occurrence of various online banking frauds is perhaps one of the key inhibiting factors

This refers to “Cash is still king in India, but digital payments rising sharply: RBI” (February 25). It was interesting to learn that India continues to have a strong bias for cash payments. This fact is reportedly based on an internal study of the RBI which points out that cash is still king in India, but there has been a perceptible shift in favour of digitisation in recent years. Statistically put, the cash in circulation as a percentage of GDP stood at 8.70 per cent in 2016-17. 

This followed the surprise announcement of demonetisation of some currency notes in No­vember 2016,