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Heroes of Demonetisation
By Rishi Gupta, MD & CEO at Fino Payments Bank
Despite the speculations, I am people to move over from cash to
convinced that the demonetisation of online transactions making it a
500 and 1,000-rupee notes will significant step in the transformation of
ultimately help the country, and more the Indian economy.
importantly, the Indian people.
I believe this for two reasons. The first: Why was demonetisation necessary?
Prime Minister Modi’s bold initiative As I mentioned in my first blog,
will clean up the shadow economy, managing a cash economy is an
creating more faith in India’s civic expensive affair that costs the country
institutions.
billions. India uses a lot of cash and has
The second: the temporary disruption a high ratio of currency in broad money.
in the cash supply is encouraging more As a cash economy, we also lag behind
and more individuals and businesses to other countries. According to a recent
embrace digital transactions, a move report by the Bank for International
that will ultimately improve the quality Settlements (BIS), India’s cash-to-GDP
of life for all Indians. ratio of 11 per cent is among the
I feel this is the start of a new monetary highest in the world. Non-cash payment
revolution in India, where payments transactions added up to just 11 per
will become more transparent. The inhabitant in 2015; China, for instance,
demonetisation move will encourage reported 17 such transactions per
