November 8, the day ended with a huge move by the government. Demonetization, leading to weeks of hurdles for the common man. The state was that, you have money but still cannot put it in to any type of use.
The country witnessed many a things since then. From the hardships of the many to boom of the digital payments. Obviously, it had effects, especially in property and stock markets. In the real estate markets, the effect was not huge but not light as well. It was dependent upon the fact that which part of the country it was.
Whatever be the industry, it was the beginning of a cash-less era. In cities like Bangalore and Mumbai, the number of card swipes went out of the roof. The network also crashed during the first weekend of demonetization. People who pay in cash were forced to make the digital move and start the use of cash cards.
White-collar salaried employees are found today in almost all parts of India, but certain areas have much higher concentrations. Bangalore leads India in the new-economy job boom, whereas traditional powerhouse cities such as Mumbai and Delhi have a higher proportion of other types of income. It stands to reason that the property markets of emerging growth centers such as Bangalore would not be impacted as heavily by curbs on black money as those of more cash-driven cities.
Stock prices of many private sector companies and real estate developers tumbled. Yet, the effect was only half in above mentioned cities.
This move may take months for a complete liquidation of all the things.
How Technology Played Its Job
PayTM was the biggest influencer. The employees of the company would have put in day and night efforts to scale their system as the transactions reached up to 7 million a day. The company is making cash transfers of about Rs 120 crore in a day. PayTM also started offering POS service where a retailer can accept card payments through their PayTM app itself.
Another move was by MobiKwik who even launched their lite app for slower 2G networks. They even collaborated with the Indian Railways to make it easier to book tickets through their payment gateway. Freecharge also had their piece of cake with sudden surge in transactions. Meanwhile, Airtel launched their payments back in Rajasthan, offering an interest of 7.25%.
A few apps also popped up in the Play Store which helped people in locating ATMs with cash, as most of them ran out of it.
With all of this, the demonetization effects are large and hard to rollback. But it is also paving way for a better India with monitored transactions.