Motilal Oswal - MOSL: ECOSCOPE-Has demonetization led to higher digital payments? Doubtful-ATM cash withdrawals back to pre-demonetization levels

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Motilal Oswal

Nikhil Gupta

MOSL: ECOSCOPE-Has demonetization led to higher digital payments? Doubtful-ATM cash withdrawals back to pre-demonetization levels

â€‹ECOSCOPE: Has demonetization led to higher digital payments? Doubtful; ATM cash withdrawals back to pre-demonetization levels

One of the key structural benefits expected from the historic demonetization announced in November 2016 was a shift towards digital payments. However, the aggregate value of all transactions under electronic payment systems (EPS) has failed to witness significant increase even six months post demonetization.

Further, while the value of transactions in retail digital modes (PoS, PPIs, IMPS and UPI) increased sharply in December 2016, it has stabilized at higher levels since then (up to May 2017). Similarly, while the volume of retail digital transactions doubled by December 2016, there are no new net additions since then.

Finally, after falling by more than 60% in the last months of 2016, cash withdrawals from ATMs have moved back to pre-demonetization levels. All these data points raise doubts over the desired structural shift towards digital payments post demonetization.

19/06/2017 6 EN

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Motilal Oswal

Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.

Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.

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Analysts

Nikhil Gupta

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MOSL: ECOSCOPE-Has demonetization led to higher digital payments? Doubtful-ATM cash withdrawals back to pre-demonetization levels

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

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