Apropos the editorial Long Live Cash! Even as cashless is in (ET 26/6/25 )the surge in digitalisation and the promise of robust economic growth have paradoxically been accompanied by an increase in cash demand—a scenario that seems contradictory, yet also indicative of a certain optimism in the Indian economy. Despite rapid strides in digital payments, the behavioural preference for cash remains deeply entrenched. Traditional factors such as the prevalence of black money, corruption, high inflation, and inconsistent cash supply through ATMs continue to reinforce this tendency. For many, cash remains not just a medium of transaction, but a symbol of financial control and certainty in uncertain times.Moreover, the increasing demand for real estate, gold, and other high-value commodities reflects widening inequality, but perhaps also hints at a deeper shift: the growing confidence in the Indian rupee. The rupee’s use in international transactions, in place of the dollar in some contexts, may be a subtle but significant development in India's economic story.
While digitalisation has indeed grown multifold—a welcome and necessary change—it has not yet delivered fully on some of its key promises. Better tax compliance, reduced use of hard currency, and a shift in behavioural motivations for cash use remain elusive goals. These realities call for deeper introspection.In essence, the co-existence of rising digital adoption and continued cash demand is not merely a contradiction—it’s a reflection of India’s complex and evolving economic fabric. Both cash and digital must continue to co-exist until systemic trust, inclusion, and behavioural shifts align more decisively.
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