The intensive persuasion for a cash less transactions by the central and state governments seems to be yielding multiple benefits. The significant surge in the usage of both credit and debit cards across both the Telugu state is evident of its impact.
It was estimated that the overall assumed growth of card usage is 60 per cent. While debit card usage has gone up by 70 per cent, there has been a 40 per cent spike in credit card usage.
On a single day, on December 8, these cards alone accounted for over 6.8 lakh transactions amounting to about Rs 200 crore across the State of Andhra Pradesh. According to officials over two crore transactions have taken place in the state via cards since November 9.
Similarly, the demand for point of sale (PoS) machines is also increasing day by day. Bank officials admits that people are preferring card transactions as they are hassle-free and the best option available. More number of people are now coming forward and applying for credit cards, irrespective of their usage.
Cards are being used not just for purchases but also for transferring money from account to account. This way, one can avoid serpentine queues at banks. Banks estimated a 35 per cent jump in the usage of debit cards at business establishments and a significant rise in the number of traders and merchants seeking e-PoS machines.
The main problem traders are now facing is the shortage in availability of PoS terminals. It was also found that the usage of cards for transactions for less than Rs 500 has more than doubled. However, the note ban has come as a blow to the liquor outlets in many places. The sales has dropped by 40 per cent.
