Demonetisation: Around Rs 25,000 crore of cash transactions go digital post note ban

Businessmen and manufacturers in Mumbai and Pune have been hit hard by the Prime Minister Narendra Modi's demonetisation move.

70 per cent of the businessmen in financial capital of Mumbai and the manufacturing hub of Pune along with nearby areas bore the blunt of currency ban on daily basis transactions, says a SBI research report.

The report also found that construction sector and the informal roadside vendors have been impacted greatly.  55 per cent and 71 per cent respondents said that their business came down by over 50 per cent.

The survey was conducted between December 30 and January 3.

Sectors such as construction and the informal roadside vendors are the worst hit by note-ban, an report said on Tuesday. 

A total of 175 responses were recorded and analysed of which 40 per cent respondents were from premier business locations of Mumbai and the remaining 60 per cent were from Pune and nearby areas.

Main finding of the report

# 15 per cent of cash-based transactions adopted digital modes in the weeks following demonetisation.

# Around Rs 25,000 crore worth of cash based transactions migrated to digital modes in the last 2 months.

# While 69 per cent of the respondents said that they have been impacted.  

#  63 per cent of the  sample still supported the demonetisation. 

#  The respondents said the lack of supply of lower denomination notes resulted in more chaos.

#  The prevalence of digital mode of payments in chemist shops and even in automobile stores has possibly resulted in only marginal impact on their sales, says the survey.

#  Within the textile sector, shopkeepers dealing with retail segment have been more impacted than those in the wholesale segment. Moreover, the wedding season has been disappointing with sales dipping significantly.The gems and jewellery sector has also been hit with declining sales.

(With PTI inputs)