The mega Cash-Clean Up drive which started in November after the unceremonious announcement by PM Modi has it’s repercussions still reverberating pan-India.
The major aim of demonetisation was to erode black-money supplies and also usher in Digital wave in the country. Recently, RBI spilled beans as to how effective was the decision of demonetising higher value currency notes of Rs 500 and Rs 1000.
The RBI report revealed statistics as follows:
- Transaction volume at point-of-sale (POS) machines via credit card (CC) and debit card (DC) in the period of October 2014 to February 2017.
- Total amount transacted at POS machines via CC and DC in the period of October 2014 to February 2017.
- Total amount transacted via the Bhim app from December 2016 to February 2017.
- Total amount transacted via UPI from August 2016 to February 2017.
Prominent wallet services like Paytm and Freecharge saw a massive surge in transactions post Demonetisatio from the usual level of transactions. Reportedly, these payment platforms transaction numbers grew multifold by 1500%.
In January, Paytm boasted of a surge from 130 million users to 190 million. However, in February, 190 million users rose by another 100 million users, hovering around 200 million.
In the 2 year span from October 2014 to March 2016 period witnessed an uphill of Credit Card/Debit Cards transactions. Card transactions shot up from 100 million to around 200 million.
Not only this, card transactions after demonetsation move saw a massive splurge in the small transaction category. Demonetisation drive also engendered digital payments for transacting with local vendors or grocery shops. Dhaba-walas or drink-vendors also encouraged digital payments, else they would have lost ground.
What government has really achieved beyond introducing the digital wave is the milestone development of UPI and Bhim, which has facilitated Indians in making digital transactions. It is also a hassle-free method of transacting. Also, it mitigated public’s fear of privacy and reliability and instilled trust in transacting digitally.