Electronic transactions have risen all around after the Indian govt introduced demonetisation on November 8, 2016. A large body of data exists that detail this shift. Let us look at them to understand this shift.
The use of electronic payments has increased since November 2016. In data published by the RBI which tracks the representative data on Electronic Payment systems.
Also, UPI (Unified Payments Interface) through BHIM has grown a staggering 5777.77% since demonetisation.
— STPI (@stpiindia) October 16, 2017
AEPS or AAdhar Enabled Payment systems is witnessing rapid growth across rural India as detailed in this report leading to an overall surge in electronic payments.
Currency in circulation
Growth in mutual funds
A stellar success of demonetisation has been the ‘nudge’ effect provided to Indian households to invest in more formal modes of investments, such as equities, mostly via mutual fund SIP’s. According to the Association of Mutual Funds in India, total assets have grown tremendously with individuals holding the higher share of assets now.
This points out the overall shift of the India economy to a more formal economy where savings are channeled to equities. This will increase Govt Revenue and Govt budgets which will help kickstart a virtual cycle leading to a more developed economic structure.