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A recent survey conducted on the anniversary of demonetization has brought to light an intriguing shift in property transactions, indicating an increase in cash usage. The social media platform Localcircles conducted the survey, involving a vast demographic of 44,000 individuals from 363 districts. Remarkably, it revealed that 24 percent of the respondents reported conducting property purchases without the involvement of cash, a deviation from the 30 percent reported two years prior.
This shift in payment methods can be traced back to the momentous decision made on November 8, 2016, when Prime Minister Narendra Modi announced the demonetization of Rs 500 and Rs 1,000 notes. These notes collectively represented over 86 percent of the currency in circulation by value, and the intention was to reduce the heavy reliance on cash within the economy. An illuminating facet of the survey is the revelation that over three-quarters of the participants who had purchased houses within the past seven years, subsequent to demonetization, resorted to cash payments.
Impressively, over 28 percent of the respondents disclosed that a significant portion, ranging from 10 to 20 percent, of their property transaction amounts were settled in cash. Equally noteworthy was the fact that 15 percent of respondents indicated that over half of the total transaction amount was paid in cash, while 18 percent reported that 30–50 percent of the deal amount was comprised of cash payments.
Interestingly, the survey findings clearly demonstrate that the use of cheques in property transactions is no longer a common practice. Respondents shared that only select builders, primarily those engaged in extensive property developments, demand cheque payments for the entire transaction. This norm in property transactions underscores the increasing prominence of cash payments, rendering cheque payments an exception.
While digital transactions have achieved new heights and the world progresses toward a cashless economy, the survey has provided valuable insights. It revealed that a significant 82 percent of the respondents still resorted to cash payments for a range of expenses over the past year, including groceries, dining out, and food delivery services. This data suggests that although digital transactions are on the rise, cash continues to play a pivotal role in everyday expenditures, reaffirming its significance in the modern financial landscape.
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