With no option left after demonetisation, consumers have been increasingly using their plastic or mobile money to transact. Provisional Reserve Bank of India (RBI) data for November-December show a steady increase in card usage.
For instance, in December, the volume of card transactions
for four banks was at 311 million and the estimated value was at Rs 52,220 crore. This is higher than the 214.48 million transactions
worth Rs 44,119 crore recorded in August when data from all the banks was collected. We also see a similar story playing out in case of mobile wallets.
However, what needs to be seen is if the momentum in cashless transactions
continues even after cash withdrawal restrictions are removed.