Has demonetisation led to higher digital payments?

Has demonetisation led to higher digital payments?

A report on ‘Digital Payments post demonetisation’ by Motilal Oswal Securities on:

The aggregate value of all transactions under electronic payment systems (EPS) has failed to witness significant increase even six months post demonetisation.

Further, while the value of transactions in retail digital modes (PoS, PPIs, IMPS and UPI) increased sharply in December 2016, it has stabilized at higher levels since then (up to May 2017).

Finally, after falling by more than 60% in the last months of 2016, cash withdrawals from ATMs have moved back to pre-demonetisation levels.

All these data points raise doubts over the desired structural shift towards digital payments post demonetisation.

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