5 years after demonetisation, while the use of digital transactions in India has rapidly accelerated due to the COVID-19 pandemic, a survey found that the use of cash is still prevalent in property transactions, grocery purchases and payments for services. Is. Prime Minister on 8 November 2016 Narendra Modi He had announced his government’s demonetisation move, when in a sudden announcement, Rs 1,000 and Rs 500 notes were discontinued.
70% of citizens surveyed said that when they or their family bought a property in the last 7 years, they had to pay a part of the prices in cash, while 16% paid half the amount in cash. Of those who have used cash to purchase products in the past 12 months, 95% have paid for groceries, eating out and food delivery.
Similarly, of those who used cash to purchase services during this period, 3 out of 4 used it to pay for services like house help, home repairs or beauty/haircut etc. Is.
The survey, conducted by community social media platform LocalCircles, received over 36,000 responses from over 388 districts in India. Out of which, 44% respondents were from Tier 1, 33% from Tier 2, and 23% from Tier 3, 4 and rural districts.
It further found that for 2 out of 3 Indians, cash transactions now account for less than 25% of their total transactions. Moreover, if the data points of the previous years are compared, it is clear that in the last 12 months almost 20% of Indians have reduced their cash transactions.
black money in property transactions
Citizens of LocalCircles continue to report that cash is still widely used to buy and sell assets. People have also highlighted that even for many MSMEs, the sale of immovable property and purchase, sale and purchase of agricultural land, transactions continue with the registration of the property, at a fraction of the value paid. Which leads to evasion of taxes.
Overall, 70% of property buyers in the last 7 years had to pay a part of the prices in cash, while 16% paid half the amount in cash. This question got 8,920 responses in the survey.
Cash transactions now down to 25%
The questions in the survey asked citizens about the percentage of average monthly purchases they made without receipts over the past 12 months. In response, 56% of citizens said that “5-25%” of their monthly purchases were without a receipt. 15% said it was “25-50%”, and 15% said it was “50-100%”.
Only 11% of citizens said “none”, while 3% could not. This means that overall, for 2 out of 3 Indians, cash transactions now account for less than 25% of their total transactions. This question received 9,082 responses in the survey.
growth in digital payments
After comparing the search with similar survey results from the 2019 and 2020 surveys, 27% of citizens in 2019 and 14% in 2020 reported saying, “50-100%” on average their monthly purchases were without receipts, and is currently 15% this year.
This shows that the number of citizens making most of their monthly purchases without receipts has decreased by about 20% in the last 12 months.
95% have used cash to pay for grocery, out-of-pocket food and food delivery
The survey also sought to understand what categories of products citizens spent or paid a major chunk of in cash in the last 12 months.
Overall, 95% of those who have used cash to shop in the past 12 months have paid for groceries, eating out and food delivery. This question received 9,180 responses in the survey.
13% have used cash to buy gadgets
If the reasons given by citizens are evaluated in order of priority, the findings show that 95% have used cash to buy “groceries, eating out and food delivery” in the past 12 months, 13% has used it to “buy gadgets like gadgets”. Smartphones, laptops, etc.”, and 11% used it for “property valuables such as jewellery, used vehicles”.
3 in 4 have used cash to pay for services like home-support, home repairs or grooming/haircuts, etc.
Similarly, the following question tried to understand for which categories of services citizens have paid cash for in the last 12 months. In response, 20% said “home workers’ salaries”, 1% said “travel”, and 19% said “personal services or home repairs, etc”.
On an overall basis, the survey found that 3 out of 4 have used it to pay for services like house help, home repair or grooming or haircut etc. This question received 8,927 responses in the survey.
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