Did Demonetization Pressure Tilt Indian Digital Barometer?


The question though is whether it tilted enough, considering the inconvenience caused by demonetization. Digital is important to economy as it brings down cost of transaction, improves efficiency of financial system, increases transparency and transforms customer experience. Replace of more cash by digital and adoption of digital by a wider…

Read More...

The Mood(y) on Demonetization


Yesterday in a dramatic turn of events, Moody upgraded country rating of India after nearly 14 years and demonetization was cited as one of the economic reforms triggering the same, along with GST and others. While the upgrade caught everyone by surprise but citing demonetization is the more surprising element,…

Read More...

Was Demonetization Triggered By Sudden Surge In Cash or FICN?


“In his book, Glimpses of Indian Economic Policy: an Insider’s View, Patel writes that when the then finance minister HM Patel told him about the step, he asserted that steps like these rarely have striking results”* IG Patel was the RBI Governor when India underwent demonetization in 1978. Lately high…

Read More...

Did Demonetization Benefit outweigh the More than 165 Billion INR Cost?


A back of the envelope analysis based on RBI FY1617 annual report released today, puts the benefit at around 120 Billion INR for the year compared to a conservative estimate of the cost at ~165 Billion INR. Basically the whole exercise turns out to less than a zero sum game which put the…

Read More...

‘Currency At Hand’ Is Still Down 22% Compared To Pre Demonetization!


Indian’s held around INR 17 Trillion in currency (all possible legal tenders) as of 28th Oct 2016. By 14th April, 2017, the same stands at INR 13.3 Trillion (~ 22%) below, pre-demonetization level. This is even 17% less than 31st Mar 2016 level and still 4% lower than the 31st Mar…

Read More...

Tracing Demonetization Through Electronic Transaction Behavior


RBI today (25th April 2017) released the POS & ATM statistics for month of March. Do you know that the stats of credit & debit card usage at POS & ATMs closely reflects the dynamics of demonetization? For ease of comparison, we converted the statistics to ‘per day transactions’ and…

Read More...

Is Digital Payment Tapering off With More Cash Available?


This will be a million dollar question/ apprehension that not only GOI but many analysts will be having! While GOI believes that Demonetization & Digital India working together will push India towards more cashless (aka electronic) society, there is a question lurking in everyone mind whether the return of cash…

Read More...