Cash use by public increasing steadily.

A year after demonetization when most of the money has been remonetized and GST has been put in place, the cash use by the public has been steadily increasing. This development has been attributed mainly to GST rollout, as according to RBI data the surge in currency with the public began happening only after the new tax regime was introduced.

This is considered to be a reverse in the little progress that was made after demonetization towards a cashless economy. Another reason for an increase in cash with the public was also the rapid speed of remonetization, due to which the cash with the public has been growing. Majority of the small businesses today are holding on to a greater amount of cash. The amount of money banks are receiving has almost gone down to the pace before demonetization.

RBI reports state the almost 90% of the demonetized currency has been remonetized and is back in circulation. Rs 17.94lakh crore of money was in circulation before demonetization last year, and as per the latest reports, Rs 16.35lakh crore is currently in circulation. Indicating that the cash availability with the public has again come to levels closer to the situation before demonetization.