Demonetisation: Corporates take the cashless path

Demonitisation has led to a surge in bank deposits, particularly in zero-balance Jan Dhan accounts.

By: Express Web Desk | New Delhi | Published:November 26, 2016 11:06 pm

Demonetisation has unleashed a payment revolution. Paytm and mobile wallets like Mobikwik and Freecharge have reported a huge jump in new customers. Seeing the changing trends, aReputation, a Delhi-based social media analytics firm, has joined hands with American Express in a move that is aimed at bringing relief to their restive employees.

“At aReputation, we are driven by the belief that a happy employee is an asset. It’s a win-win situation. The current scenario has caused inconvenience, not just to our people, but to everyone. Our alliance with American Express is aimed at ensuring that the workforce does not face daily transaction issues. We feel a corporate responsibility towards our people and believe this initiative is for everyone’s good”, said Manya Khare, CEO, aReputation.

The company celebrates ‘cash-less card-held life day’ on November 27. They are encouraging the workforce to opt for credit and debit cards for all their transactions through their association with American express.

Prime Minister Narendra Modi’s move to scrap Rupee 1000 and 500 notes has turned India into a fractious society. Although we are restless and inconvenienced, Demonitisation has threatened the continuing existence of black marketers and hoarders.

Demonitisation has led to a surge in bank deposits, particularly in zero-balance Jan Dhan accounts that swelled by over Rs 21,000 crore, according to reports, in just two weeks, raising suspicion that these accounts may have been used by hoarders to launder black money.

Also, according to published reports, banks received Rs.5,44,571 crore in deposits and old notes submitted for exchange from the time banks reopened after demonetisation till November 18.

It simply means that if the scourge of black money is to be defeated, India must become a generally cashless society. The two banned notes account for 86% of all notes in circulation in India’s largely cash economy.

Countries like Belgium and France are dominated by cashless economies where transactions, according to reports, are as high as 92% cashless in nature. Canada is 90 % cashless. Demonitisation is expected to put India on the same patch.