The end of Rs. 500 and Rs.1000 declaration by the prime minister of India Mr. Narendra Modi will help India move towards Digital India. It is a bold move by the prime minister as it will help in the rise of digital payments. People have finally started realizing the importance and advantage of the digital currency. We live in a country where 98% of consumer payments are still made in cash but with this change undoubtedly our country in the coming days will witness a huge transformation from print to digital.
Impact of banning Black money
With the new cashless economy, here is how different sectors will be impacted:-
Mobile wallets like Paytm, Jio money and Mobikwik will be rapidly replacing the cash transaction which in return will bring financial transparency.
Currency ban will assist the e-commerce websites to boom as a mass crowd will be using debit or credit cards and net banking to conduct transactions. Business giants like Amazon has already stopped their cash on delivery service.
Now as the government has declared bigger transactions have to be made through cards and other internet wallets the use of debit cards and credit cards will increase. Although more than 697 million debit cards are in circulation in India today but not all of them are in use.
The Reserve bank of India has asked all the banks to make sure that at least 10% of their ATMs dispense Rs. 100 note. The impact has also forced all the banks to make smaller denominations available in the selected ATM counters for the first time ever.
UPI or Unified Payments Interface is a payment system that allows money transfer between any two bank accounts by using a smartphone. The NPCI (National Payments Corporation of India) has declared on Thursday that bank applications of UPI have officially become operational. The application is now available on android app store and apple istore.
With the decision of the Indian government, POS terminals which is a machine that accepts card payments in retail store need to radically increase at retail stores as people will increase using their cards.
Digital companies are flooded with opportunities like building plug-ins, applications, vendor management space. It will increase transparency and government institutions can keep an eye on people. There is a pool of opportunities to partner with online payment brands like PayTM. Since customers will avoid cash transaction they will definitely go online and once they understand the feasibility and get used to online payments they will gradually go digital.
In short, the recent demonetization will give a huge push to cashless payment systems like online payments, mobile payments, POS etc. which in return increase the rush in digital payments and other digital platforms.
The demonetization announcement by Anourable PM Narendra Modi will also help to increase employment. With digital companies booming they’ll now have to recruit suitable and proper candidates by screening and deploying them effectively. There is no doubt our country will go fully digital in next few years.