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Unprecedented rise in digital transactions an implication of Modi’s demonetisation?

YB WEB DESK. Dated: 4/7/2021 11:59:20 AM

In a row of some really positive news for all of us, as per the latest report published by ACI Worldwide, India has led the whole world in terms of digital transactions, fascinatingly leaving behind the US and even China. Although India has surpassed every other nation in terms of the sheer volume with 25.5 billion digital transactions and not the overall monetary value, it hints towards the rapid pace of digitisation in India. And if this trend continues to work its way similarly, it would be a matter of time when India accomplishes similar feats in terms of monetary values as its economy witnesses a rapid expansion. Indian consumers have a significant variety of platforms offering online payment methods to opt from, primarily due to the popularity of online transactions which has grown abruptly in the recent few years. Given the remarkable numbers we have managed to accomplish as a nation in terms of the number of digital transactions, many financial experts have praised this development while pointing out that this rise may very well be due to the strict lockdowns implemented by the Indian government for quite some time. It may have urged people towards the digital medium of monetary transactions, but it is not the only aspect involved in the matter. The much controversial decision of demonetisation, implemented by the central government in 2016, widely acclaimed as a political and economic disaster by many, definitely played a crucial role in promoting and encouraging digital transactions mainly because the country lacked cash, as around 86% of the currency in cash was demonetised. Though the implementation of this decision was not so well managed, it was a bold one in itself. Bearing quite some economic repercussions, demonetisation came with some positives attached to it as well. The rise in digital transactions is one of those positive developments which managed to emerge with time. The other critical factor which forced Indians towards digital transactions was the deadly spread of COVID-19 and the lockdowns implemented to safeguard our lives. The fear of catching the disease with any form of touch encouraged countless people to shift towards an online mode of transactions to avoid any physical interaction altogether. The boom in digital payments has numerous benefits for the individual as well as the economy. It is not just easy and convenient as per the individual's needs but ensures more transparency and curbs black money to a certain extent. Digital transactions are not just the way to the future but the path to building a more transparent and prosperous future for our society.