Demon of Demonetisation & Digital Evolution

Demon of Demonetisation has struck many in the past one week, especially those who played dubious games with the system. In order to set these people right, billions of commoners have also been affected. Here is a snapshot of the impact

Impact on Loans & Deposits

Interest rates on deposits have started to fall as the total deposits in banking system reached 100 lakh crores as of 17th Nov 2016. This is also a good news for those, who want to take loans as the interest rates on loan will see a downward trend very soon.

Impact on E-commerce

Cash on delivery (COD) is an option given by websites like Flipkart, Amazon, Snapdeal, ShopClues and Paytm etc while placing an order for a product. Close to 60% of all e-commerce orders are paid through cash on delivery, according to stats. Due to shortage of cash, deliveries that are being made to customers are being turned down and even cancelled. COD helps in easing the cash flow as it ensures a steady income for logistics companies, who charge for their services.

To counter this, the e-commerce companies are incentivizing customers to make pre paid orders. Other alternative that these companies are encouraging customers to use is payment gateways to pay for their orders like Ekart for Flipkart and ATS for Amazon India. This is apart from conventional payment options like using debit card, credit card and net banking

Impact on Branded Salons & Wellness Providers

Some branded salons are incentivizing customers for premium services by paying half for it. They are also accepting notes of Rs 500 and Rs 1,000. Jawed Habib’s and Head Turners are accepting cash deposit of Rs 25000 for membership while giving services worth Rs 50000 to ensure a steady demand for their services. Meanwhile there has been 20% increase in demand for services like hair smoothening, straightening and highlighting, as reported. Some salons hare also accepting notes of Rs 500 and Rs 1,000 if customer is buying their products.

Impact on Multiplexes & Small Screen Theaters

Demonetisation also made entertainment inaccessible for a few days. Multiplexes sell 40-60% of their tickets online or by card. To incentivize customers to book online or on mobile app, PVR has waived off the convenience fee for total of 4 weeks. 35% discount has been given on Food & Beverage combos & 20% off on first transaction on mobile app.

Meanwhile small screen owners in tier III & tier IV cities are facing brunt of cash crunch as they are not associated with any online payment gateway partner. They faced less than 10% of the occupancy in the first two days of demonetisation announcement. Very soon they will have to acquire the infrastructure to accept cards or sell tickets online for smooth running of their business.

Impact on Kiranawala/ Paanwala

Kiranawala and paanwalas are looking for digital solutions in times of cash crunch. These merchants have been frantically placing requests to get an installation made for new POS (Point of sale) terminals. According to Lokhvir Kapoor, CEO of pine labs, who manufactures these terminals, thousand requests have already been made for the installation of new terminus. According to Manish Patel, founder of mSwipe, there has been a rise in demand for mobile POS terminals, which can be attached to mobile phones and used to swipe cards.

Impact on Construction Workers Domestic Helpers

The Modi government claims that the Jan Dhan Yojana that they started out in 2014 covers 99% households. Banks have opened 25.45 crore accounts under the scheme that provides banking facility to all.

Domestic helpers and workers, who are usually at the lower wrung of the society, are mostly poorly paid and have to exert for physical labour often for long hours. Demonetisation brings bad news to these workers if they have been ignorant about their rights.

Impact on Real Estate & Stock Prices

Black money has been the prevailing norm in the real estate sector. Demonetisation could mean stalling of few projects leading also to cancellation of few projects. This could have an impact on demand for cement, building material & paints, thereby also affecting their stock prices.

Impact on Demand for Gold

Gold prices went down post the announcement of demonetization. The gold prices have fallen 1% and are likely to fall further 3% by next month. Gold imports are likely to drop 35% in the next few months. Buying will be slow till march as consumers will wait for the price of gold to go down further.

Impact on Truckers/ Farmers & Laborers

Traders are unable to make payments, due to which vegetable market are suffering. The supply chain was brought to a halt. A trader from Ghazipur mandi said that onion supply was stopped from the state. In Gujarat, cotton and groundnut mandis were closed. The demand has fallen due to lower purchasing power.

Meanwhile amidst all the confusion, Modi has requested its citizens to side by him till Dec 30th in his fight against black money and terrorism.

Impact on Tourism

International tourists, students, medical tourists, delegates and diplomats have been affected. Embassies are suggesting for a separate counter at banks to facilitate their needs for Indian currency also since locals are being preferred in banks to be helped first. Tourists are finding themselves to be stranded in far flung areas with banned notes. Medical tourists from Iran and Sudan cannot make payments from credit card due to sanctions. Meanwhile embassies have cancelled visits by delegates to India while this problem of cash crunch gets solved.

Ola! you got credit to pay later. Paytm me, Uber

Ola, a point to point taxi service has created an option for frequent users and corporate clients to repay through Ola Money e-wallet – payment option in the app even after 1 week. Meanwhile Ola’s contemporary Uber allows payment through paytm payment gateway.

Digital Solutions

Discontinuing Rs 500 & Rs 1000 note on Nov 8th 2016 by Prime Minister Narendra Modi has led many to look for digital solutions for payments. The beneficiaries include payment gateways like Paytm, MobiKwik, Payzapp, Freecharge that are being looked into as a desperate measure in desperate times.

Demonetisation Hacks

Here are a few hacks to counter the affect of demonetisation.

  • Every individual has 2.5 lakh tax free income that can be put in banks. Homemakers are most to benefit.
  • Gifts from Relatives can be tax free upto a certain limit
  • Weddings/ Ceremonies: Cash received in ceremonies and weddings are tax exempt to a believable limit.
  • Loans to staff/ Vendors: To save money in another’s bank account, they could be given a loan with a commission.


“In the short term consumers will be constricted by the unavailability of cash and that will trickle down through the consumer network and that will have some impact on their performance. Whether it is for months or for quarters is hard to say. A lot will depend on how the financial institutions and the government continue to respond through this constraint. But without any doubt, they will see impact on their results.”

Jack Ringquist, global leader for consumer products at Deloitte

Smart Light Bulb Causes Viral Cyber Attack

A light bulb can cause a cyber attack. Recently popular websites like Twitter, Reddit, and Amazon were taken down by an attack that was prompted by a chain reaction on semi-infected smart bulbs linked to smart devices.

Unlike our personal computers, mobile phones and pads, which run an anti-virus/ anti- malware softwares, smart devices like light bulbs, new in the market, are often not secured.

The brand in question, Philips Hue light bulbs, have an inbuilt ability to control bulbs’ brightness and colour via smartphone apps. The wireless protocol – called ZigBee in the bulb can be exploited for cyber attacks. The malware can spread virally from one bulb to the other enabling attackers to turn on or off all city lights within minutes.

Even though this has been set right incase of Philips bulbs, one needs to keep updating the software to ward off the possibility of such attacks. Webcams, baby monitors, and smart appliances are likely to be vulnerable to such attacks.

There is no one solution but for the manufacturers of smart devices to step up their timely security up-gradation to prevent disruption on a larger scale.

Like they say, there is light at the end of the tunnel and for those uninitiated to such smart devices yet, here are couple of videos to keep oneself bright perhaps at least seasonally with city lights.

Diwali Lighting In Jaipur / DIY Home Decoration With Lights

Diwali Lights At Ramoji Film City Hyderabad/ Stop Motion Video


Can Virtual Gaming counter Social Media Indulgence at work?

I see my peer on Facebook every time he has free time. He would just mindlessly scroll through the app, liking random posts because sometimes its just obligatory ‘to like someone’s post’ OR virtually not making a mistake of either liking or commenting on ‘specific’ people’s posts. He has figured out his style of being on Facebook. Facebook has become a boardroom of sorts where consensus are made, shaped, aligned and then set free when other priorities shout at the door.

Facebook has also become meditation, spending few minutes here and there on it to find peace. It is a virtual world, where people dominate their onscreen realities as they like it and determine how people should treat them off it.

For such a high consumption of space by billions, it just makes sense to officialize Facebook or spending time on social network an essential part of people ‘work – life balance’ No?

According to a study done by HR service company TeamLease, employees spend 2.35 hours on social media during working hours. Same employees also spend 1.5 hours outside work on these platforms. This implies that 13% of employees productivity is lost, resulting in losses for the company.

Another way to look into this would be to counter the “pastimes” that employees indulge in, by making them interact in virtual gaming, where team(s) enter the game zone to work on deliverables. This could perhaps be customiszed based on the intellectual levels required to compete. This could become a non mind numbing outlet for those employees, who do not participate in physical sports activities thus giving them lesser room to remain in their Facebook/ digital social network bubble.

This would perhaps also result in employees productive turn around in offices!

Mobile App for distressed employees

According to reports, some Indian companies have adopted customized mobile apps to ensure timely and easy communication with their employees.


Through the app,


  • Employees can apply for attendance, leave and travel from anywhere in the planet and bosses can approve ‘On The Go’


  • E-learning & certification courses: Brain cells can be exercised by accessing these app friendly courses from anywhere


  • Directory service: Now grapevine will travel faster with easy access to every employee information


  • Goal setting: Make goals on the football field and see your company’s dreams come true


  • Internal communication: Newsletters, activity club, etc can all happen here


  • Feedback surveys: Your feedback is important to the company and so is the survey.



Through these apps, companies can create a Digital Universe for Digital Transformation within the company!