{"id":5247,"date":"2017-06-12T16:14:51","date_gmt":"2017-06-12T10:44:51","guid":{"rendered":"https:\/\/teekhapan.wordpress.com\/?p=5247"},"modified":"2017-06-12T16:14:51","modified_gmt":"2017-06-12T10:44:51","slug":"digital-transactions-were-growing-faster-before-demonetisation","status":"publish","type":"post","link":"https:\/\/vivekkaul.com\/2017\/06\/12\/digital-transactions-were-growing-faster-before-demonetisation\/","title":{"rendered":"Digital Transactions Were Growing Faster Before Demonetisation"},"content":{"rendered":"
The finance minister Arun Jaitley recently said<\/a>: “Through demonetisation, the government created a new normal, with a big step in removing the earlier scenario of cash economy and shadow economy.”<\/em><\/p>\n If this is true then there should have been a substantial jump in digital transactions in the recent past. If people are not carrying transactions in the cash economy, then they should be carrying out transactions digitally. But is that true<\/em>?<\/p>\n Let’s first look at the number of digital transactions (i.e. volume of digital transactions) that have happened every month between November 2016, when the demonetisation of Rs 500 and Rs 1,000 notes was announced, and May 2017, the latest monthly data available. All the digital data used in the column deducts the transactions carried out through Real Time Gross Settlement system simply because it is not a retail mode of digital transactions, which is primarily what we are looking at here. The minimum amount that can be transferred through this mode is Rs 2 lakh.<\/p>\n Take a look at Figure 1. This basically plots the total number of digital transactions that have happened between November 2016 and May 2017.<\/p>\n Figure 1: <\/p>\n