October 5, 2016
Cost of cash can be reduced from 1.7% to 1.3% of GDP by expanding acceptance of digital payments, energizing innovation and bolstering financial inclusion
New Delhi, October 05, 2016: Visa, the global leader in payments technology, today unveiled the report Accelerating the Growth of Digital Payments in India: A five–year outlook. This study, the first of its kind for India, looks at the benefits of transitioning India to a less–cash society over the next five years and provides a roadmap for action.
According to the study, the cost of cash places a huge burden on the Indian economy equivalent to 1.7% of GDP. This high cost of cash stems from large volumes of cash flow in the Indian economy relative to its peers across the globe. For example, in India, in 2015, the number of digital transactions per capita was only 10, compared to 163 in Brazil, 420 in South Korea and 429 in Sweden.
Unveiling the report, Amitabh Kant, CEO, NITI Aayog, Government of India said:
We welcome the release of Visa’s report and its policy recommendations for transitioning India to a less-cash society. Digital payments ...