New Delhi: The usage of plastic money is catching up in India as industrial hot-spots and tourism destinations report high rates of card usage, says a survey.
According to a survey by Retail Management Solutions provider, Ginesys, besides tier I cities, the usage of plastic money is high in industrial hot-spots and tourism destinations.
Tier I cities like Delhi, Vadodara, Kanpur and Chandigarh continue to lead in terms of card usage, the survey based on analysis of card sales data for the fiscal 2012-2013 said.
"Plastic money consumption in tier I cities was around 19.09 percent of total sales. In comparison, tier II townships such as Karnal, Ambala and Junagadh had a percentage of around 7.27 percent of card usage," Ginesys said.
The study also reveals that industrial hot-spots and tourism destinations had high rates of card usage compared to other cities and towns.
While Bharuch in Gujarat had a rate of card usage (20.94 percent), Kanpur and Mesana sported figures of around 10.61 percent and 18.33 percent, respectively. This can be attributed to higher levels of financial activity in such destinations.
Card usage was seen to be high in densely populated locations like Lajpat Nagar in Delhi and Law Garden in Ahmedabad. This can be attributed to high levels of commercial activities in these areas.
As per the findings of the research, card penetration is low in cities like Jalandhar and Karnal, and this, inspite of the fact that these cities are hubs of manufacturing.
Moreover, it was found that cities like Chandigarh, Vadodra, Jamnagar and Kota etc, which have above average levels of card usage are witnessing sluggish rates of growth.