Cash may no longer be king in India. The nation’s nascent digital economy stands to be the biggest beneficiary of its strongest crackdown on corruption since 1978.
In a surprise announcement late Tuesday, Prime Minister Narendra Modi banned 500-rupee ($7.50) and 1,000-rupee notes effective midnight, sweeping away 86 percent of total currency in circulation. Paytm, India’s largest digital wallet startup, hailed the move in the morning newspapers as it splashed Modi’s photograph in a full-page advertisement.
“This is the golden age to be a tech entrepreneur in India. Specially a fintech one,” tweeted Vijay Shekhar Sharma, the founder of Paytm, whose investors include Alibaba Group Holding Ltd. “Keep the money digital.”
In a nation where 98 percent of consumer payments are still made in cash and about a quarter of the $2 trillion economy is unaccounted for, Modi’s pushing for electronic transactions to improve transparency. The latest move is estimated to more than double annual growth at payment companies.
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From PayTM to Ola: Brands cash in after Rs 500, Rs 1000 notes banned – While the rest of us were panicking after Prime Minister Narendra Modi’s dramatic announcement that the current Rs 500 and Rs 1000 notes will cease to be legal tender from midnight, some quick-thinking brands sniffed out an opportunity in the mess. In a stroke of timely marketing, they thought rather innovatively and promoted their cashless and online payment schemes. It all started with PayTm’s immediate response to the breaking news. The witty tweet advertising the m-wallet brand started trending within seconds. (Hindustan Times)
Rs 500, Rs 1,000 notes gone: Paytm to MobiKwik, digital wallets are rejoicing – Rs 500 and Rs 1000 notes have been abolished by the government and it looks like digital wallets are rejoicing. The government of India has abolished Rs 500 and Rs 1000 notes that were in circulation, and these have stopped to be legal tender as of November 8 midnight. The move is aimed at curbing black money and corruption in the country with citizens having the option of going to a bank or post office to exchange these notes or deposit them in their bank account. (Indian Express)