Note ban fuels digital payments

Much to the surprise of critics, sectors such as petroleum saw twofold jump in digital transactions

When India announced scrapping of old denomination of Rs 500 notes and Rs 1,000 notes on November 8, 2016, many said the move would cause disruption for months as cash transactions were prevalent. 

However, much to the surprise of critics, sectors such as petroleum saw a twofold jump in digital transactions, to 750 million from 250 million, in four months from December. 

This was mainly because of a 0.75 per cent discount on digital payments at retail outlets and Rs 5 discount per LPG cylinder on online payments. 

Shine Jacob takes a look at how the sector has fared in terms of digital transactions before and after demonetisation.

Future Perfect

Now, oil marketing companies like Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation are planning home delivery of petrol and diesel to boost digital transactions. Currently, multiple wallet facilities are available at outlets. Public sector oil companies, including Oil and Natural Gas Corporation, IndianOil Corporation and Bharat Petroleum Corporation, have even made 30 of its housing campuses cashless.

With all these additional measures, the sector is expected to grow beyond 20 per cent share on digital transactions in a few months.