Following the implementation of the demonetisation policy by the Narendra Modi government, and as the Prime Minister scrapped currency notes of higher denominations, there had been an increasing demand for online exchange of money among the common people of the country. And as the metro cities’ adaptation of digital marketing had increased post implementation of the note-ban policy, cities from outside, which were considered as low-penetration market for digital payment, had also seen a steady increase in the use of e-transactions.
While, after November 8, e-transaction firm, Paytm had witnessed an average of three transactions per customers in big cities like Delhi and Mumbai, there had been 4 transactions through Paytm, per customer in small cities. Before the implementation of the demonetisation policy, there had been just four transactions per week, through the e-wallet application.
Another e-wallet firm, Mobikwik had seen a rise of 1,000 per cent in the adoptation of its e-transactions in Tier II and Tier III cities.
The increase in digital payment in the market had also been witnessed from almost every unorganised businesses sectors including street sellers, grocery stores, pharmacies, food joints and others.
Citing the increase in the flow of blackmoney in the country, Prime Minister Narendra Modi, on November 8 had initiated the demonetisation policy, following which there had been a ban on currency notes of the denomination Rs 500 and Rs 1,000. And as the struggle among people continues, with several standing in never-ending queues outside banks and ATMs, waiting for hours to replace their scrapped notes or collect usable paper currencies, there had been a steep rise in the digital modes of payments in the Indian market.