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…

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Why RBI Is In Choppy Waters?


It is funny to note that while RBI kept itself busy counting notes, another big man of dubious means kept himself busy with counting money as well. Only difference is that RBI was counting demonetized notes while this other big jewelry guy was counting all valid notes. The end was…

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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,…

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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…

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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…

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Indian Banks Performance in Digital Space: FY17


Digital has been the talking point in practically every discussion that banks are having today. So how many really ‘walked the talk’? Did the private banks, as expected, takes the cake or do we see a strong play by public sector banks as well? Without much ado, our analysis indicates…

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Why Banks Are Reducing Savings Rates?


For last few days, banking headlines are all about reduction of interest rates on customers deposits. Many are calling it ‘banks gundagardi’ etc but the logic is very simple. It is in bank interest only! Post demonetization, banks are flush with cash so there is no need to keep deposit…

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