Demonetization cuts cash use — 13% overnight
Cash usage fell by 13% and card spending jumped after the note ban, accidentally stimulating the reward points market in India. This led to more spend categories and issuers improving their card offerings.
India’s cash usage crashed from 70% to 57% of retail spend after the demonetization of ₹500 and ₹1,000 notes. This sudden shift led to a surge in debit and credit card spending. The note ban inadvertently stimulated the growth of reward points in India, making it a more mainstream hobby.