Sunday, 27 November 2016

India moving towards Digitalisation after 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 

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. 

Many of the shop owners and vendors across India have started accepting money through digital wallets such as Paytm, Mobiwik etc. Paytm for e.g. has seen a multifold increase in number of transactions and is said to have met its internal targets 4 months in advance.


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!  

Subscribe via email

Like the post above? Please subscribe to the latest posts directly via email.

3 comments

Tulis comments
avatar
10 January 2017 at 03:34

Hi,

The demonetization action takes by the government of India to counter black money has short term affected the peer to peer lending business activity as it requires regular rolling of money.
however, you can still lend and borrow online.
lendenclub.com gives you an opportunity to do the transaction online.

Reply
avatar
11 January 2017 at 02:43

Various financial institutions have started reducing their interest rates. This will boost the affordable housing segment in a big way. Peripheries of Mumbai and tier II cities will emerge as viable options. IDBI,SBI have been in the forefront and this trend is expected to be followed soon by other banks as well. Credai believes that the rates might further go down to create the immediate impact on home buyers. Please read my blogs on http://www.wallsnroof.com/blog/home-loan-interest-rate-cut-may-drop-further-credai/

Reply
avatar
11 January 2017 at 02:45

Various financial institutions have started reducing their interest rates. This will boost the affordable housing segment in a big way. Peripheries of Mumbai and tier II cities will emerge as viable options. IDBI,SBI have been in the forefront and this trend is expected to be followed soon by other banks as well. Credai believes that the rates might further go down to create the immediate impact on home buyers. Please read my blogs on WallsNRoof

Reply