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Formal Digital Economy

According to government estimates, there were total 300 crore digital transactions in 2016-17 financial year.

How India became a more cashless economy after note ban

The difficult decision of demonetisation by the Prime Minister Narendra Modi government has now started bearing fruit and showing considerable returns, according to a government analysis.

The initiative to ban Rs 100 and Rs 500 notes has helped boost Indian economy, brought in more cash into the formal banking structure,  India Today quoted the internal report of the government as saying.

The abolition of high denomination notes was done on November 8 last year. The Centre had to take a lot of flak for its bold step, as it disturbed the daily lives of millions of people.

Among advantages like widening of the tax base and curbing tax evasion, the report said India became a more digitised economy.  Here are few findings of government analysis that suggest India became a less cash economy after demonetisation:

(Source – India Today story; image – Reuters)

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