India’s 2016 demonetization aimed to reduce corruption and promote digital payments, but cash remains vital.
Despite a surge in digital transactions, the use of physical cash grew by 16.6% in 2020-21, posing a ‘currency demand’ paradox.
Indians still value cash for emergencies and major purchases. Real estate deals and political funding also contribute to its persistence.
This mirrors a global trend, challenging the expected decline of physical cash in the digital era. For many, like auto-rickshaw driver Atul Sharma, cash remains indispensable.
Source: BBC.
https://www.bbc.com/news/world-asia-india-67674453