Indepth: India Inc on operating in a post-demonetised ecosystem
It’s one year today since the Modi Government introduced its demonetisation drive in India. The policy decision taken to curb black money in the society and also fasttrack the country’s move to digital payments is most remembered for the haunting images of people standing in long queues outside banks and ATMs in search of elusive cash. Overnight, 86 per cent of the country’s currency, especially 500 and 1,000 denomination notes was rendered invalid.
We at Adgully have been following up with industry stalwarts on the impact of the demonetisation drive across media, marketing and advertising. Print players, broadcast experts and radio majors have reminisced about how the initial days after demonetisation were, analysed the short term and long term impact, how they coped with the challenges that cropped up and what the industry did to tide over the impact of demonetisation.
On the first anniversary of demonetisation, a cross-section of industry leaders share their insights, experiences, advice, analyses and much more…
He further added, “The initial impact was of a big squeeze. Faced with cash shortage, consumers put a halt to a lot of discretionary spending and markets saw dwindling activity. We saw a big dip in execution with all our brands.”
“Digital payments were the first step to digital finance for many people. As people made their foray into digital transactions, they became more aware of the benefits – simplicity, speed, transparency – of not just cash transactions, but digital finance in general. Today, this has led to more customers opting for the online route with a great deal more confidence. Be it credit products such as loans or credit cards, insurance products, or investments such as mutual funds, we at BankBazaar are seeing a sustained and growing interest and preference for the paperless model, especially for products that are supported by instant, paperless verification and documentation processes,” Shetty added.
According to him, “Post demonetisation, the challenge for the banking system was primarily to create the proper system of liquidity and availability of cash. Secondly, we have been promoting digital banking with machine, apps (Bheem app) and other digital initiatives. Because of that, the footfalls have come down and more people are doing banking transaction digitally.”
However, demonetisation has had little or no effect on digital. “Since Jio added millions of new users to the digital ecosystem, the medium became relatively cheaper (CPM basis) this year, thus attracting more advertising and continuing to grow at a fast clip,” Sodhani noted.