One Year Journey of Demonetisation
It is not only changed the common perception of people but it completely re-branded India’s thoughts and execution processes
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Demonetisation was a bold step taken by our Prime Minister Narendra Modi, especially in a country like ours where a large portion of the economy was run on cash transactions. This step was a major blow against terrorism, black money and corruption, but turned out to be a tough journey for many others.
The importance of Micro, Small, and Medium Enterprises (MSMEs) sector, which comprises to almost 8 per cent GDP in our economy cannot be overstated. Due to greater dependence on cash, this sector has been affected more than the rest of the economy.
The cash inflow almost came to a halt and people had limited cash, which they saved for the uncertain future. At that point, all the small and medium businesses suffered a lot. It was the dependence on hard cash which created the main disruption in dealings. The whole procedure of adapting to online transactions, e-wallets etc. came out as the main challenge where most of the people did not even have a bank account. And, transition, as we all know, is generally painful as it requires changes and alterations from the routine.
However, with demonetisation as well, once the initial setback phase was over and businesses were able to streamline their processes and accounting, they were then able to access credit markets more efficiently and at better pricing, thus lowering their cost of funding.
Through this move government wanted people to move towards a cashless society and make most transactions through the registered mode of payments. As the time passed, businesses spotted their ways to get through the tough time and came up with many innovative solutions as well. It was a well thought of decision which was focused to make India business-friendly for all companies in the long run.
Among a plethora of changes and variations that demonetisation brought with it, is one important element which is ‘acceptance to change.’ Demonetisation not only changed the common perception of people but it completely re-branded India’s thoughts and execution processes.
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