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Consumers shifting from cashless to cash owing to high costs, reveals survey

ANI  |  New Delhi [India] 

Citizen engagement platform LocalCircles , via a survey, revealed that out of the 8, 715 participants, 68 percent said that majority of their transactions are now happening in Only 32 percent said that they still prefer using debit or credit cards as well as other forms of transactions to make payments.

has majorly been a cash-based economy .The move by the in November 2016 put our country on the path of being a cashless economy. In the initial period, post the move, as the flow in the market was low; many discounts were offered to customers on electronic transactions.

charges were waived off and it looked like was on the right path of reducing transactions and increasing online transactions. But three months after the move, as the availability of cash improves, people are going back to cash transactions.

The trend shows that as the availability of cash is improving in the market, even the people who had started using payment methods after are using cash for majority of their transactions. Some of the major reasons outlined by the citizens for this were high charges for debit or credit cards, less availability of POS terminals at shops in local markets, cases of fraudulent transactions and so on.

Citizens also made many suggestions for promoting cashless and reducing cost. Citizens want charges to be zero. Also, people want maximum merchant charges on and wallet usage to be fixed at less than one percent.

Citizens are also of the view that entities like Bhim and RuPay should have zero or minimum transaction fee and be aggressively promoted.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, February 17 2017. 16:07 IST