India moving towards Digitalisation after Demonetisation?
digital India digital wallets fintech startups after demonetisation Money Manager peer to peer lending Short term credit mismatch surgical strikes on black money why demonetisation
In the previous blog, you read about how our Prime Minister,Mr. Narendra Modi has made a strike on corruption. One of the breath-taking and
historic move by PM. What I can say is “8th November 2016 will now
be a day to remember”.
The 500 Rupee and 1000 Rupee note consist of almost 85% of
the currency that was being circulated all over India but now they are like a
piece of paper for some!
Source : Economics Times
Source : Economics Times
“Why Demonetisation?”
India’s Ministry of Finance stated that this demonetisation
is to restraint financing of terrorism and put a curb on the shadow economy in
India. As per some experts this move will also result is showcasing the
people’s real income and ensure that they are paying a proper income tax.
This cracking move by the BJP government has put everyone in
shock not only in India but everyone around the world. Due to this move, India
is moving towards digitalisation. Everyone is going digital from big shop
owners to a local pan vala.
My India is going Digital.— ashima (@AshiQuotes) 17 November 2016
मेरा देश बदल रहा है।#DigitalIndia #SayNoToBlackMoney pic.twitter.com/pEionJwZgS
How Fintech Startups can help you at the time of demonetisation?
Digital
Wallets and E Payment Gateways: As government has put a limit on the
withdrawal of amount from ATM i.e. Rs. 2500 per day and a maximum of Rs. 24,000
per week from a bank. Digital wallets can help you to a great extent as now
many of the vendors do have this as a mode of receiving the amount. E Payment
Gateways can also help you in dealing with demonetisation. You can also swipe
your ATM card at most of the places as now a days do have an electronic machine
for transactions.
Money Manager: Some apps do manage your transactions i.e. how many ATM transactions you have done in a month. These apps will help you to track your expenses.
Peer to Peer Lending Marketplace: Peer to Peer Lending is a practice of lending money to borrowers through online service that match borrowers directly with lenders. As small business owners whose work was dependent on cash flow to deal with the regular expenses has been affected by this demonetisation step. They are seeing the drop in their business of upto 40-50%. P2P lending platforms can help them to maintain their regular expenses. They can avail a short term loan for their business to maintain the workflow and also to maintain the creditmismatch as discussed in the previous blog.
While there is no debate of short term impact on lives of
every Indian and Businesses that the demonetization move has had – the impact
to a certain extent can be muted if we adopt digitization in our daily lives –
how sustainable is this – is anyone’s guess!