Hours after the historically redefining announcement by Prime Minister Narendra Modi, decommissioning all Rs. 500 and 1000 denomination currency notes, Mobile wallets and online payment service providers have seized the opportunity to promote cashless transactions by their users to tide over this period.
Late evening on Tuesday came an announcement which shook the entire nation, the higher denomination currency notes of Rs.500 and 1000 ceased to be legal tender. People who currently possess these notes can deposit them in their bank account either through the teller or the cash deposit machines from 10th Nov to 30th December as banks remain closed for customers today. Customers can withdraw money from accounts in Rs.100 denomination notes starting 11th Nov, Initially a withdrawal limit of 2000 per day from ATM and 4000 per day from banks will be in place which will then be increased to 10,000 a day and 20,000 per week.
While individuals who do not have bank accounts can get the old notes exchanged up to a maximum of Rs.4000 at banks or post offices by showing a valid government ID proof like Pan card or Aadhar card. At this time there is however no restriction on online transactions whatsoever. This is the perfect time for mobile wallets and online payment service providers to market themselves and increase their subscriber base.
PayTM has started to send out notifications to its subscribers to add money in its wallet to be free from the worry of 500 and 1000 Rs. notes being scrapped. Subscribers who recharge their PayTM wallet with Rs.222 are being offered 25% cash back on the next 5 Uber cab rides up to 13th Nov. It is also offering up to Rs.20 cashback on recharging of Delhi Metro cards for a minimum denomination of Rs.200, along with Rs.150 cashback for bus ticket booking and Rs.500 cashback for flight booking.
The online food ordering app Zomato has sent out notifications to its users, offering a flat 15% cashback on all orders for which the user selects an online payment method. Subject to a maximum cashback of Rs.100 and valid up to 13th November.
Ola cabs India's homegrown competitor to American behemoth Uber, is offering flat Rs. 500/- extra on recharges of Rs. 500/-, for the first 25000 users. Simply use the code MEGA500 when you reload your ola money with Rs.500. The offer is available only on first recharge by new users and is valid only on recharges done on 9th Nov between 1 PM and 1.15 PM.
Kunal Bahl, Co-founder and CEO, Snapdeal which also owns online recharge company Freecharge, said, We welcome the Government's bold and courageous move to weed out black money, which will have significant long term benefits for the economy. Snapdeal is offering a 10% Instant Discount on All Credit and Debit cards at www.snapdeal.com, m.snapdeal.com and Snapdeal Mobile App. There is no minimum transaction required to avail this offer. The maximum discount applicable is Rs.500/- Offer Duration: Valid till 09 Nov 2016
In today's day and age where everything is transforming from physical to digital, the impact of this diktat can be minimised by online transacting instead of dealing in hard cash. At least in urban areas people have a myriad options to supplement their daily needs. Grocery needs can be met by ordering on Big basket and Grofers, food can be delivered by ordering on Swiggy and Zomato, commuting in cabs can be met by using Ola and Uber, Any and every shopping need can be met by shopping online on Amazon and Flipkart, Movie tickets can be booked on BookMyShow, house handy work can be ordered using Urban Clap. It is the rural areas and unbanked population who will feel the pinch more.
Note: For all big amount payments we suggest using Debit cards, net banking, wallet money transfer, NEFT, IMPS, RTGS or the newly launched UPI service which has all major banks as participants.