The demonetization of the 500 and 1000 rupees notes has been a historic step taken by the honourable Prime Minister Narendra Modi. This step of money demonetization has been the boldest and a revolutionary step.
The common people are seeking for smaller units of currency which is becoming somewhat a problem these days. The after effect of the demonetization has proved to be a win-win situation for the fintech industry. The people are using the innovations of the fintech so as to keep up with the payments, financial transactions, and much more.
The business ventures of the fintech industry have seen a great peak in the business because of the demonetization of the larger currency. The people are getting much more awareness towards the fintech and encouraged to use the innovations of the fintech business ventures. The ventures of the fintech industry have touched the heights of business after the money demonetization. Almost all of the financial transactions that are being carried out these days are based upon the fintech innovations. Online and mobile banking have seen increased usage in the past few days.
- The business of the Paytm have hyped drastically. It has become the first runner in the race of the fintech. The transaction volume of the Paytm has been astounding. According to a report on the Paytm, it was observed that in a single day it has hit approximately 5 million transactions. Paytm has served and processed the financial operations of worth rupees 24000 Crores till date. Even the small shopkeepers and vendors are also accepting the payments through Paytm. The traffic on the website of the Paytm has increased by 700% and the volume of the money added in the Paytm wallet is being increased by 1000%. The installation of the Paytm app has also been increased up to 300% in the past few days. Earlier, the use of the Paytm by a common person was limited to 3 transactions per week but now it has increased up to 18 transactions a week.
- The idea of the Digital India is promoted to a great extent. New business ventures and investment capital in the industry of the fintech is increasing after the demonetization step.
- The Government of India is promoting the use of these fintech innovations. The Finance Minister of the country has emphasised the topic of the cash less transactions in the coming years.
- Various online shopping sites are also supporting the demonetization by favouring the payment through online or net banking. Moreover, the cash on delivery facility have improvised. The payment at the time of delivery can be done through cash or by card swiping.
The historic step of the money demonetization has not only made a step towards curbing black money but also to boost up the digitization of the country. The fintech industry is growing at an extraordinary pace these days.