Perhaps one of the greatest after effects of demonetization, digital momentum is soon engulfing the nation in totality. Prime Minister Sri Narendra Modi has declared the currency ban of Rs 500 and Rs 1000 notes, and the move sparked off great noise across the country. What was launched as a counter offensive to fight the ongoing corruption and black money circulation led to severe complaints from the regular Janta and the opposition parties. While some look at this as a great move, there are critics who opine that the strategy could have been executed better.
However, India has taken to digital revolution, thanks to non availability of cash. Tired of lining up and waiting outside the ATMs, the citizens are slowly switching to going cashless. This is proving to be a great advantage, especially in lines of digitization.
Why is going digital important?
Today, most superpower countries are living off their electronic wallets. People in the advanced nations often use plastic instead of cash. This ensures sizable transparency in the economy. India is yet to get in line, as majority of the rural population still survives on cash.
Demonetization, taking India to the next digital level
Let us just admit, people would have not made many efforts to go digital if not for demonetization effect. The rural and the backward population is slowly getting used to the idea of going digital. Several villages are now going cashless already, using platforms like Paytm to undertake everyday transactions. The best part, even the farmers and local vendors are making a move to go cashless.
One of the intended consequences is to move to e-transactions. We cannot be the kind of country and economy we deserve to be with shady practices that lead to a black economy. Kenyans have been paying for stuff from the middle of the jungle through mobile phones for near a decade now, not sure why we cannot do so in 2017. Why do we still need cash, except to perpetuate a shady side? In a span of eight days, banks got nearly 90 Billion dollars worth of new deposits. This is a tremendous boost to our economy, which will unleash a virtuous cycle of growth. Now when other elements of the black economy are brought online, just imagine. This is like 10 years worth of FDI being raised internally.
Suresh Rayudu Chitturi, Managing Director, SH Group
Going Cashless Ensures Transparency, Leads to Progress
This is the case of diamond cutting the diamond. Corruption prevails highest because of cash circulation in any economy. Going digital actually curbs the possibility. The transaction are transparent and reflect on an individual. Funds are thereby not misused for illegal activities. Digital transformation is much required for India at this point of time, both in lines of advancement and fighting fraud.
We have to accept that the aftermath of demonetization is not all that worse. Every good change comes after painful sacrifices and tribulations. India will find this stage a little tough, but will soon see the reaps. Digitization is definitely one of the best outcomes so far, after the currency ban.