Cashless Honeymoon is Over
It seems that the cashless honeymoon is about to end in India. On 8th of November 2016, a sudden declaration of banning high denomination notes had created a lot hullabaloo across the nation. The decision was taken to encourage cashless India as well as draining out the black money from the economy. The move by the Prime Minister has been shown quite a good progress in last 100 days of demonetization. However the cashless honeymoon is now seemed to be over as the progress shows declining trend in past few months.
Cashless is over – various opinions
- Sometimes in last week the nation, especially the heads of the monetary policy makers in India were celebrating 100 days of demonetisation. The celebration word is quite confusing here there was nothing much to celebrate about it.
- Demonetisation opened up for all the people of the nation. Unfortunately only few of them could actually be benefitted with the policy of digitization. Mass of the inhabitants is still living in a place where technology is yet to be reached.
- According to the Chairman, State Bank of India, Smt. Arundhati Bhattacharya, the cashless honeymoon seems to be over as people are returning back to cash transaction again. Once the banks increase the supply of liquid asset in the economy, people are tending to go back to cash transaction again.
- The digital mode of payment is using only by few people whereas the large part of the nation is still struggling with the Smartphone. There is a huge number of people who are still not used to digital payments. Hence they are opting for cash transaction again.
- HDFC, a large money lender organisation is not much sure of the mobile wallet sustainability as well. According to a spokesperson mobile wallets are not going to stay forever as the process depends on network.
The reason for failure of Digital mode of transactions
There are not much of reasons that come forward in this regard. Most of the people are facing server problems and for mobile users it is network issue in many places. In case of digital mode of payments many people face such situation where server is down, card does not work properly because POS machine isn’t working and sometimes the seller does not even know how to use these machines.
Wallet is growing – what experts say
While bank people are saying that wallets won’t work, the biggest mobile wallet company Paytm has a different scenario to show. All this while many a people have used Paytm and other mobile wallets and according to the founder of Paytm, start-ups take time to bloom so wallets will also show up good profits in future.