Three retail sectors, consumer durables, multi-brand outlets and FMCG that have witnessed the highest consumption growth in terms of average cash-led purchase per retail store, the report said.
The findings of the study suggest coexistence of cash and digital that serve different needs. “Some of these states see strong remittance inflows—a pattern that revived significantly during and after the pandemic. While the transfer of funds may be digital, the last mile is often still cash, especially in rural and semi-urban areas” said Anush Raghavan, President, Cash Management Solutions, CMS Info Systems . “Add to that sustained government initiatives and financial inclusion efforts, and what we’re seeing is the evolution of a balanced, formal economy—one where cash and digital don’t compete, but coexist seamlessly to serve different needs.”
Between 2014-2024, several enablers have aligned to propel the cash economy through a robust cash infrastructure, which, in turn, has been instrumental in the making of a consumption economy noted the Reserve Bank economists. “In this decade, Currency in Circulation (CIC) rose by 157%, the number of ATMs increased by 32%, and bank branches expanded by 36%—all clear indicators of cash’s enduring relevance, despite major disruptions such as demonetisation and the surge in contactless payments during the lockdown period” the pape said.
