Less cash, but slowing digitisation

One year after 86 per cent of India’s currency in circulation ceased to be legal tender, it is time to take a closer look at what impact that decision of Prime Minister Narendra Modi has had on the country’s drive towards increasing digitised payments. There can hardly be any dispute over its adverse impact on growth and jobs. Nor can anyone claim that there was no disruption to economic activity once all old currency notes of Rs 500 and Rs 1,000 were annulled.

Government economists have already admitted to a slowdown as a result of demonetisation and