One year of demonetisation: Banks see cost benefit from digital push

Demonetisation and implementation of the goods and services tax has also led to formalisation in the economy

Digital initiatives by banks accelerated in the past year after demonetisation. This was driven by the cash crunch and a government push, resulting in more awareness and adoption of digital products.   

“Awareness levels have increased manifold. Now, if we offer the same products and services, acceptance by customers is much better,” said Anup Bagchi, executive director, ICICI Bank.

Axis Bank says it’s seen a sharp decline in transactions at branches. Digital transactions are now two-thirds of their transaction mix. IndusInd Bank saw a 50 per cent jump in the number of digitally active customers and significant rise in transactions per active