A report has said that with easing of the liquidity crunch, transaction volumes for overall retail electronic payments has seen a marginal dip in the past few months.
According to HDFC Bank, the argument that decline in currency with the public from the pre-demonetisation levels implies a structural drop in cash usage is perhaps misleading.
As per reports, the volume of retail electronic transactions peaked to 1.30 billion in December, last year, after demonetisation was announced by the government on November 8 as part of its drive to counter black money menance as well as promote cash-less culture. However, since then the volume of retail electronic transactions has steadily been below the 1.30 billion level.
"After an initial spike in digital payment methods, there is anecdotal evidence that some smaller merchants are reverting to cash," the report said.
"With easing of the liquidity crunch, transaction volumes for overall retail electronic payments have seen a marginal dip," it added.