Currency circulation in the country reached a two-decade high

- Transactions through NEFT and RTGS decreased due to the epidemic

Digital payments have also declined on the other hand, disrupting economic activity in the wake of the second wave of Corona epidemics. Against it, cash transactions have reached a two-decade high.

According to data released by NPCI, digital transactions also declined in April and May. So on the other hand the cash currency in the economy has reached a new record level.

During May, transactions through UPI stood at 4.5 billion. Which was 3 and 4 per cent less than last April and March, respectively. The transaction is valued at Rs. 4.5 lakh crore. Which was 0.5 per cent and 6 per cent less than last April and March, respectively.

Other transactions, including lockdowns imposed by various states, led to a decline in digital transactions. So on the other hand there was a big increase in cash transactions.

According to RBI data, by March 2021, the cash flow in the Indian economy had reached a two-decade high. This is an increase of 12.5 per cent over the previous year. Thus, among the epidemics, cash transactions have seen the biggest jump since 2010-11.

During May, transactions through National Electronic Funds Transfer (NEFT) fell by 10 per cent to Rs 2.5 crore. The transaction resulted in a turnover of Rs 2.16 lakh crore.

Transactions through real-time gross settlement (RTGS) fell by 12 per cent to 1.4 crore in May. Through this transaction, Rs. 6.5 lakh crore was transacted.

The decline in digital payments in May had the most adverse effect on Fastag. In May, 11.5 crore transactions were made through Fastag. Which was 3 per cent less than in April and 3 per cent less than in March.

However, the month of May saw an increase in the India Bill Payment System (BBPS). During this time, it had 2.5 crore transactions. Which was 11 per cent more than the previous two months.