Cash may no longer be king in India. The nation’s nascent digital economy stands to be the biggest beneficiary of its strongest crackdown on corruption since 1978.In a surprise announcement late Tuesday; 8th November 2016 Prime Minister Narendra Modi banned 500-rupee and 1,000-rupee notes effective midnight, sweeping away 86 percent of total currency in circulation.In a nation where 98 percent of consumer payments are still made in cash and about a quarter of the $2 trillion economy is unaccounted for, Modi’s pushing for electronic transactions to improve transparency. The latest move is estimated to more than double annual growth at payment companies.
Cash may no longer be king in India. The nation’s nascent digital economy stands to be the biggest beneficiary of its strongest crackdown on corruption since 1978.In a surprise announcement late Tuesday; 8th November 2016 Prime Minister Narendra Modi banned 500-rupee and 1,000-rupee notes effective midnight, sweeping away 86 percent of total currency in circulation.In a nation where 98 percent of consumer payments are still made in cash and about a quarter of the $2 trillion economy is unaccounted for, Modi’s pushing for electronic transactions to improve transparency. The latest move is estimated to more than double annual growth at payment companies.
Transaction volumes at companies including Its Cash Card Ltd. could increase about 120 percent each year over the next few years instead of the 50 percent gain previously estimated, said Managing Director Naveen Surya, who’s also chairman of representative body Payments Council of India. “This is a strong and loud signal that physical cash is no longer welcome.”To bring each of India’s 1.3 billion citizens into the financial system and remove unaccounted cash, Modi started a massive campaign in 2015 to open no-frills bank accounts. He’s betting that this initiative, together with bio metric identifiers to cut illegal payments and more mobile payments, will ensure a cashless future and reduce opportunities for graft. The learning curve will be steeper and faster as this innovative move has pushed people against a wall and is forcing them to change transactions into lesser cash intensive ones. In the present scenario online transactions are the smartest way of collecting or making payments. FEEGENIE provides availability of digital payments mode at any time and from any place. Just in few clicks, you can avail the services either by using Smartphone or Android App, to pay fee online.