While there are several ways in which transitions in money and its usage have been observed in
the last few decades, there have been some significant changes in the way money is perceived
and used in the last 5 years. Money and its use as well as its value has evolved in India, just like
the other parts of the world. While people still use cash for most day to day transactions, Indian
money spending is now moving more towards card and digital payments. The latter guarantees
not only safety but also ease of use making it convenient for investors to get access to funds
without having to go through a laborious process.
Here are a few significant changes that occurred in terms of money in India in the past 5 years:
One of the significant events concerning money that has taken place in India, over the past few
years is demonetization. The currency notes worth Rs. 500 and Rs. 1000 were devalued
overnight and instead replaced by new Rs. 500 and Rs. 2000 notes. It not only changed the look
and feel of the currency notes, but also helped in eliminating unsanctioned and unethical cash
transactions completely. While the aftermath of demonetization witnessed a lot of chaos, it also
eliminated several important issues that plagued the economy of India.
Post demonetization, the country has also seen a growing interest and performance in
cryptocurrency. Bitcoin is a digital currency which is independent from banks and government.
Thus becoming attractive alternative than government controlled currency. The demonetization
was done to reduce and eradicate the black money from the country so that no such cases of
corruption happen. Bitcoin will become an ingenious way to hide money from the state so many
of the money launders would simply purchase a large number of bitcoins with old rupee notes
and then sell them back later for legal currency. After the rise of Bitcoin as a currency, many
different types of cryptocurrencies have now been launched in India.
While the traditional forms of investments included storing cash or buying real estate due to the
safety, there are now many more safe investment options available in the market. Fixed Deposits
is one such investment which offers guaranteed returns on flexible tenors making investments
and money management that much simple. It also ensures that a certain amount is set aside to
grow which could otherwise get spent in other expenses. NBFCs like Bajaj Finance even offer
higher interest rates which could maximize the amount of savings that you put into investments.
There also are other forms of Safe Investment Options such as Recurring Deposits, Mutual
Funds, Bonds and Stocks that offer lucrative returns to investors.
Along with the introduction of virtual money came the concept of digital wallets, firstly
introduced in India by Paytm. As people are moving towards more digital forms of transactions,
they are also not keen on carrying a lot of cash for day to day transactions. With online payments
and bank account management becoming more common, e-wallets offered customers the
flexibility of storing money digitally in a wallet that can be accessed on merchant websites and
Unified Payments Interface or UPI is one of the other major changes that have taken place in the
way money is perceived and used in India. This particular initiative was introduced by National
Payments Corporation of India and primarily facilitates faster payment transfers between one
bank account to the other on a mobile interface. There are many companies and banks that now
offer UPI services, facilitating instant bank transfers without having to enter too many details
and going through a cumbersome payment process.
While this is not a change that has taken place in the past years specifically, the trend has really
set in these years. Cash is increasingly becoming rarer and people are increasingly preferring to
carry debit or credit cards for payments instead of carrying a large sum of money in cash. This
alternative is not only safer, using a credit card can even grant flexible EMI options and offers to
customers. Credit card companies have also started offering a large number of discounts and
cashback offers to encourage its use. Due to this, cash is no more the most preferred payment
option for people.
This changing habit of banking is a new growth of India. But with this new age banking many
people are now opting for investing their money in fixed deposits, loans, mutual funds etc. Many
people are looking for fixed deposits and been investing their money in fixed deposits so that
their money remains safe and secure and so that they can get guaranteed returns on their money.