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
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!