10 | P a g e
(agricultural produce marketing committee) markets. Therefore,
despite a good harvest, there is unlikely to be a commensurate
improvement in rural demand.
SENSEX AND FOREIGN INFLOWS
Since demonetisation, the Sensex has fallen by around 5%
while foreign portfolio investors (FPls) withdrew around
Rs.37,300 crore in November, the highest since June 2013. FPls
had withdrawn Rs.12,140 crore in October.
Foreign investors have pulled out funds from capital markets
due to fears of rate hike by the US Federal Reserve in
December, uncertainty over US ties with emerging markets post
(the) Donald Trump victory, and concerns over the impact of
demonetisation and GST on economic growth & corporate EARNING.
INDIA MOVING TOWARDS CASHLESS ECONOMY
It won't be wrong to say that India is moving towards more
cashless economy as data from RBI reveal that bank branches
increased at 5% per year, but automated teller machines
(ATMs), debit cards and card-swiping machines have doubled in
four years and online transactions have grown 20 times in six
years to 2016 and this process is likely to be greatly boosted by
According to RBI data, currency in denominations of Rs 500
and Rs 1,000 have increased 50% over three years (from Rs 9.6
lakh crore in 2012-13 to Rs 14.1 lakh crore in 2015-16) while
India's gross domestic product (GDP) increased 22, and per
capita income rose18 over this period.
With the base created by bank accounts linked to Aadhaar,
the national identification system, and the upcoming Unified
Payments Interface, which will facilitate payments through
mobile phones linked to bank accounts through a unique
number, demonetisation will help speed the transition of a
predominantly cash economy to a cashless one.
The number of debit cards in India more than doubled
between 2012 and 2016. Over the same period, point-of-sale or
PoS machines - the credit I debit card-swiping machines in
hotels and shopping malls, also more than doubled.
Online transactions through the National Electronic Fund
Transfer, popularly known as NEFT, rose from Rs.4 lakh crore in
2009-10 to Rs 831akh crore in 2015-16, a 2000 rise.