A recent study by Visa International has found that Indians cannot account for as

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much as Rs 20,000 a year, or Rs 383 a week, in cash purchases. Among young Indians, the figures are 20 per cent higher.

“Indian consumers cannot account for an average of Rs 383 per week in cash spending, adding up to almost Rs 20,000 a year. Younger adults between 18 to 24 claim to lose track of almost Rs 24,000 annually,” the global payments technology company said after conducting a survey covering 12,000 adults in 12 markets, including 1,000 in India.

Indian consumers reported that they were unable to account for about 30 per cent of their cash spending each week. People in Delhi reported the highest figures in the country both in terms of the actual amount (Rs 495) and the percentage of total cash spending (31 per cent).

The study found that mystery spending occurred most while shopping for food and groceries (60 per cent), snacks (36 per cent), leisure and non-essential products (29 per cent) and while dining out (28 per cent).

The survey highlights how people using a payment card for even small purchases are able to track money better than someone who uses cash. Almost two-thirds of Indian consumers who use debit cards agreed that the cards helped them to keep mystery spending to a minimum.

According to Reserve Bank of India data, debit card spending amounts to just 29 per cent of total card spending in the country compared with 52 per cent globally. “For the period ending December 2009, spending on Visa debit cards surpassed spending on Visa credit cards globally,” the company said in a statement.

“Indian customers have a mind block about the usage of debit cards and credit cards and hence we see such low spending on debit cards,” a banker said. According to him, debit cards are mostly used at ATMs while credit cards are used for purchases.

“While cash purchases can be difficult to track, the survey revealed that Indian consumers believe debit cards can help them monitor spending more closely and stay within budget,” Uttam Nayak, Visa’s country manager for South Asia, said.