DNA Money Edit: How demonetization has changed our life

Looking beyond the immediate pains, which is normal in the aftermath of any groundbreaking event on the economic front, demonetization has brought about some fundamental changes to the way we conduct our daily life. First, your grocer, baker, veggie vendor, chemist, chemist, even the roadside chaiwalla started accepting digital money. This is not just cashless transactions happening but unorganised sector joining the formal economy. The ubiquitous mobile handset found its true worth.

Second, the banks got flush with funds, and they can now lend you at cheap rates and not getting too much bothered about whether the business you are planning to start has enough collateral. How about that?

Ola and Uber and other app-based services have successfully demonstrated that a consumer-centric business can be conducted wholly on the digital platform. A cash economy is a high-cost economy.

Even before demonetization forced people to adopt digitisation, the state of your neighbourhood automated teller machine (ATM) showed you that such model is not sustainable. The ATM machines, initially housed in a chilled room having secured doors and an armed guard, now lie unattended with faulty air-conditioners and a door without a lock thereby creating potential security hazards.

A less cash economy where people have less need to go to an ATM machine can bring back the lost sense of security. Thirdly, the first step has been taken towards attacking black money. The habitual offenders are now scared like never before. Surely, better days lie ahead.