Several financial technology companies and payment banks have hailed the demonetisation as a masterstroke to establish a cashless economy. On November 9, e-wallet firms reported an increase in deposit rates by 35 to 50 per cent. “All moves towards large-scale digitisation are on,” said Sunil Kulkarni, deputy managing director, Oxigen Services.
Amit Sachdev, founder of CoinTribe, an online financial marketplace, said: “Use of digital currency and payment systems driven by wallets and cards will create enormous transparency and pave the way for faster evolution of fintech companies in India.”
Some experts, however, said the move could have been postponed. “Penetration of e-wallets is still limited in India,” said Sridhar Iyer, head of marketing and digital banking innovation, Citibank India. “To really bring in a cashless economy, [there needs to be] a number of other infrastructure [changes] and further penetration of digital banking, which cannot be achieved overnight.”