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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
                                                                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
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