Discussing effects of recent cash crunch at banks, ICICI Bank CEO Chanda Kochar on Friday said that credit and debit card usage has almost doubled since the implementation of demonetisation drive by government. “There is a huge movement towards e-transactions, card usage has almost doubled,” she said. Kochar said people are using their accounts for transactions more than the liquid cash adding that queues outside banks are also getting shorter day by day. “Queues getting shorter,not longer. Reduction in queues for exchange as people are using their accounts for transactions,” she added. Prime MinisterNarendraa Modi on November 8th declared Rs 500 and Rs 1,000 as illegal tenders and asked people to exchange their existing currency within 50 days, i.e from 10th November to 30th December. Since than long queues have been seen outside ATMs and Banks as people are gathering in large number to exchange/ return thir exsting notes.
Kochar’s comment comes a day after Snapdeal CEO Kunal Bahl said that people are migrating from cash-on-delivery to digital payments at at rapid pace. “Eighteen months ago the usage of cash-on-delivery option was around 80 per cent of the total transactions. Now, it has come to around 50 per cent and we are witnessing a further drop of 20 per cent this month,” Kunal had said. He added that the surge is a significant push in the direction of cashless transaction. “Now, already our cashless transactions are touching 60-70 per cent, so it’s been a significant push in that direction,” said Bahl.