Demonetization was a major turning point in India’s financial history. One year on, the stage witnessed a fiery round of debate when leading industry stalwarts came together to deliberate on demonetization at an India Today Conclave Next 2017 hosted by India Today Network.
Throwing light on the impact of demonetization, Su-Kam Managing Director Kunwer Sachdev said: “Business came to a standstill. Chaos prevailed. People were wary of the next step of government. However, one year on, business has made a comeback.
On being asked about the impact demonetization had on digital payments, he said: “No doubt, demonetization has given a fillip to digital payments. But to say that it has replaced cash transactions completely would be an overstatement. Today 70-75% transactions still take place in cash.
Sanjay Sethi, CEO, Shopclues echoed a similar sentiment. “The cash is back in the economy even after one year of demonetization. Although demonetization represents a burning desire to curb black money and combat corruption, what is needed is a behavioural change towards digital payments.”
Bipin Preet Singh, CEO and Founder, Mobikwik had a different stance on the issue. “Demonetization triggered digitization. It initiated a remarkable level of progress in India in three months which the country would have otherwise made in one year. Over 100 million users got a taste of digital payments.”
He, too, agreed with the view that digital payments will not replace cash transaction completely as behavioural change is yet to take place.
Rajeev Talwar, CEO, DLF Ltd. said: “It is a misconception that demonetization led to the fall of companies. The typical problem that plagued the real estate sector was an oversupply in the residential segment. People facing major cash crunch and delay in project approvals were the major impacts of demonetization.”
India Today Conclave is India’s best known global thought platform. It brings together leading stakeholders of the industry to discuss and debate on the issues of public concern.