Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Markets will remain closed on 30th November, 2020 on account of Guru Nanak Jayanti.

Are Digital Transactions Slowing Now That Cash Is Back?
Wed, 22 Feb Pre-Open

Back in November and December everyone was talking about digital transactions. One of the major byproducts of the notebandi drive was a push towards a cashless, digital economy. There was a notable increase in digital wallet transactions; people couldn't talking about Paytm, Freecharge and other digital payment apps.

The government was also pushing the digital payments in a big way. The BHIM app, developed by the National Payments Corporation of India (NPCI) and based on UPI, has been downloaded 12.5 million times. Not to mention, to boost digital payment numbers the government plans to deploy 1 million new PoS devices (that help with credit card transactions) by March, and 2 million Aadhar Pay PoS machines by September.

With such focus on digital transactions, one would have thought digital transactions would increase even after the post-demonetization period.

But turns out that is not actually the case.

As per the RBI data, digital transactions showed a 10% decline in mid-January, compared to a month earlier, as access to cash got easier. Overall, the number of digital transactions (debit cards, credit cards, electronic transfers, wallets & mobile banking) fell to 923 million in January from 1,028 million in December.

Just Released: Multibagger Stocks Guide
(2017 Edition)

In this report, we reveal four proven strategies to picking multibagger stocks.

Well over a million copies of this report have already been claimed over the years.

Go ahead, grab your copy today. It's Free.

NO-SPAM PLEDGE - We will NEVER rent, sell, or give away your e-mail address to anyone for any reason. You can unsubscribe from The 5 Minute WrapUp with a few clicks. Please read our Privacy Policy & Terms Of Use.

Why such decline?

The answer is greater currency supply. With currency crunch easing some customers are returning to cash. It is important to note that India is a country where a bulk of transactions are still carried out in cash.

The other issue is inadequate infrastructure. India has about 350 million internet users, about one-third being broadband users. Apps such as Paytm, freecharge, and BHIM need high-speed internet connectivity. Not to mention, other issues such as crashes and frauds. None of these payment systems is 100% secure. Frauds have gone up in tandem with a rise in digital transactions.

Apart from the above, there is one more reason why cash may beat cashless. Recently, I went to one photocopy shop to give some printouts. I found that if I wanted to pay by Paytm, I'd have to shell out an extra 5% service charge. And in that moment I too switched from cashless to cold hard cash.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Read the latest Market Commentary


What else is happening in the markets today? Dig in...

Equitymaster requests your view! Post a comment on "Are Digital Transactions Slowing Now That Cash Is Back?". Click here!

  

Views on News

It's Time to Book Profits (Fast Profits Daily)

Nov 27, 2020

In my first video on Equitymaster, I want to introduce you my proprietary greed and fear index. It's telling us to book some profits in the market.

Mirae Asset Large Cap Fund: Participating in High Quality Businesses (Outside View)

Nov 27, 2020

PersonalFN's analysis on the features and performance of Mirae Asset Large Cap Fund.

Create Wealth for Yourself in India's Drone Revolution (Profit Hunter)

Nov 27, 2020

The Chinese drone market is 14 times that of India's. Billions may flow into Indian drone companies too. Don't miss out on this wealth creating opportunity.

Two Very Important Updates For You (Fast Profits Daily)

Nov 26, 2020

In this video, I'll have an update for you on gold and the new member of my team.

Adani Green: A Future Multibagger or a Big, Speculative Bubble podcast (Views On News)

Nov 26, 2020

Rahul Shah discusses the hype around Adani Green Energy and analyses whether it is justified.

More Views on News

Most Popular

Stocks that Could Shine More than Gold After Diwali (Profit Hunter)

Nov 17, 2020

If the markets become volatile over the next few months, do this.

Not Infosys or Wipro. India's Next Wealth Creators Could Be Drone Stocks (Profit Hunter)

Nov 25, 2020

India's drones directorate signals the next big defence tech multibaggers.

How to Build the Best Trading System (Fast Profits Daily)

Nov 20, 2020

In this video, I'll show you how to make the best trading system.

How the New Margins Will Impact You (Fast Profits Daily)

Nov 25, 2020

The new rules on margins will come into effect from 1st December. Are you ready?

An Eraser and Some Pencils (The Honest Truth)

Nov 17, 2020

Ajit Dayal on the road ahead for the world after covid.

More

Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms

S&P BSE SENSEX


Nov 27, 2020 (Close)

MARKET STATS