Digital Yet to Reduce Cash Usage in India

India’s economy has, like most countries, been buffeted by unexpected shocks over the last few years. Cash was disrupted by the November 2016 demonetisation exercise and by the pandemic. It is also facing a determined and unprecedented effort by the government to increase the use of bank accounts and digital payments. In this context, the cash management solutions provider CMS Info Systems (CMS) has issued its Cash India Vibrancy Report 2023. It provides context for India’s payments and a cash overview based on its CMS Cash Index™.

Drive to financial inclusion

The Indian government has been keen for people to have bank accounts. In August 2014 it introduced Prahan Mantri Jan Dhan Yojana (Jan Dhan) no-frill bank accounts. The number of Jan Dhan accounts has grown from 7.07 million in September 2014 to over 500 million in August 2023.