In this digital era, demonetization has come as a shocker to the entire nation. And, no one is to blame because major transactions in different areas in the country are still dependent on cash payments to get rid of the problem of parallel economy. While the country remains divided into three sects with the advent of the ruling- the ones who are happy, others who are against it and quite a few who remain neutral about the entire thing, there’s a lot more that escapes the newspapers.
The demonetization ruling has different effects on urban areas and the rural areas. In most rural areas, digitization has not settled in and maximum transactions happen in the way of hard cash which also means people in the area have been deeply affected. But with things going wrong, this ruling also has the prospect to become an opportunity for rural India. The opportunity to now turn digital and explore various other streams of profession and payments. So we are looking at how Demonetization and Digitization are strolling around hand in hand romancing each other while we ogle at them in envy (or in contentment).
1. Demonetization came in at a juncture when it was least expected and that too in a sudden manner which shook the country with the ruling and it also managed to succeed at its crux to bring down corruption in the system.
2. As the liquid flow of cash in the system went down, people started turning to digital payment instruments such as Debit and Credit Cards or pre-paid transactions alongside digital wallets likePaytm, OlaMoney, Freecharge and Mobikwik in order to make their disbursements flow smoothly.
3. Earlier these payment instruments were restricted to a number of activities like shopping and travel, however with demonetization, smaller shops and outlets also started accepting payment via online transactions.
E.g.: A pani-puri stall vendor in a small village in Haryana continued with his business using Paytm Wallet. As a matter of fact, this shift undertaken by him actually boosted his sales due to lesser competition from other sellers accepting online payment.
4. The liquidity crunch in the system has also encouraged the government to appoint a 13-member panel headed under the Chief Minister of Andhra Pradesh, Mr.Chandrababu Naidu to promote digital payment systems across various sectors in the country.
5. There are a number of cash-back options which are available with online payment instruments making it a more viable choice for customers.
6. The government aims to find bottlenecks and works on addressing the issues that the common man is facing so as to conceive solutions which will make the payment system flow easily in the economy thereby promoting rural India to adopt the new schemes of digitization.
7. It’s time that Digital India became a reality, and thanks to demonetization, for rapidly boosting this change that will result in the nation’s progress.