Impact Of A Cashless Economy On The 1.2 Billion Indians

The introduction of new 2000 and 500 notes came in as a shock and surprise to most people in the nation. Although the notion behind the introduction was supported but the practicality was critiqued. But one good aspect of all this was the push unto cashless economy that people have been talking about. ArunJaitley, the Finance minister of India, said “The note Ban is not merely nudge the economy in the direction of cashless economy but [give it] a significant push in that direction.” The general public were still digesting the whole note ban phenomenon when this new cashless idea came forth.

Basically a cashless economy means an economy that runs on digital cash which includes debit and credit cards, e-wallets, e-payments, and online transactions like NEFT, RTGS etc.

In a country like India, it seems very radical to change to a cashless economy as cash in its liquid form is used very widely. 85-90% of the economy runs on cash transactions and people seldom use the cashless way to deal in day to day life. The demonetization move actually made 85% of India’s cash null. Time had come for people to take a new carved way i.e. the cashless way.

Cashless economy has been laudedfor the reason that it will actually curb down the black money in the economy. Furthermore, these transactions leave a trial which can be used for taxation purpose. These new methods of transaction will provide universal banking services to all the people in the country making it easier to transact between far off places as well. 1 in 7 notes is supposed to be fake, which has a huge negative impact on economy, by going cashless, that can be avoided. The costs in online transaction seems to be the main concern for people to use their cards right now, but this will reduce immensely if the cashless action plan takes a full swing.

However, cashless economy has been criticised for various reasons. One of it being the fact that common people feel it is very complicated to deal everything online. Another reason is that internet and financial literacy might not be there among some people. India is dominated by small retailers. They don’t have enough resources to invest in electronic payment infrastructure. Another major fear that has risen is that of hackers who might take control of the banking system itself. So people are quite sceptic about this as well.

It has been 50 days that Mr. Modi asked for. And today we can see not much has changed except for the fact that even the vegetable vendor has a card machine to transact. So whether the country is going through an economic development or a degradation, this time will only tell.  

After-Effects Of Demonetisation

Demonetisation is being called one of the boldest and drastic measures taken in the history of independent India by Prime Minister Modi. The move has been lauded for being an excellent step towards eradicating the infamous black moneyin our society. It is told to bring back the unknown black money and make India a much richer and safer place to live in.

But what kind of an impact does this have on common men, the small traders, and other small shop owners.

Post announcement of the demonetisation move, people rejoiced that black money and all the evil that came with it would disappear. The next day itself people realised that this was a huge step taken rather hastily.

Now, almost after one month of the announcement of the move, people seem to be frustrated. Especially the common, poor and the daily working men. There have been complaints about how people waited in the queue for almost 8 hours to get their money exchanged with the new notes.

The small trader and small shopkeeper say that their business has been the worst hit since one month. These people deal with liquid cash on a day-to-day basis and due to the unanticipated note ban, their business has been hit adversely. The flower, fruits, and other road side vendors said that they usually bought their goods in bulk for a 500 or 1000 rupees. But could not do so as the wholesaler did not accept the notes. They earn money on a daily basis and suffered immense loss.

Similarly, the daily wage worker, who are required in all types of industries, were also largely hit. These people get paid at the end of the day after they do their and usually are paid around 800 to 1000 rupees. With insufficient hundred rupee notes with their employers, daily wage earners were either denied of any work or were told they would be paid in a later day. These worker earn the money to meet daily needs and cannot forgo the money that they get. They say it was a not a good move at all.

Furthermore, the same common and ordinary working citizens have questioned the functionality of 2000 rupees. The small traders and shopkeepers deal more in hundreds than thousands. Thus, they wonder where to find change for a rs.200 sale if the customer gives a 2000 note. This has led to a lot of confusion and chaos.

Banks have seen a long line of queue in front of their office. Frustrated customers and equally frustrated bank officials do not mix well. There are quarrels reported and of course the death that was apparent due to waiting in the line.

With the unfolding of this new move, common people have started to have an opinion that the government is not for the poor while making a safe haven for the rich and upper class. However, there is still a majority of people who believe that this move is a good one and prosperity will soon be in our way. All that needs to be done is wait and watch.

Paving The Way Towardsa Cashless Economy

On 8^th November 2016, the Government of India took the bold step of demonetising all ₹500 and ₹1000 banknotes, ceasing the usage of all these banknotes as a form of legal tender in India. In an effort to stop the counterfeiting of current banknotes used to fund terrorism, and to control the black money in the country, the Indian Prime Minister Mr Narendra Modi made a live address to the nation declaring the usage of ₹500 and ₹1000 banknotes invalid, and announcing the issue of new ₹500 and ₹2000 banknotes, in a bid to reduce corruption, terrorism, and drug smuggling.

In the ensuing days, a lot has been written for and against this move. Although in general, the move to demonetise and thereby hinder black money was appreciated by the masses, the manner in which it was carried out, and the hardships caused to the common man has been criticised. It is important to understand the economics behind this historical move before forming any further opinion.

Demonetisation is a radical monetary step to invalidate a currency unit’s status as a legal tender. Such a monumental step is usually taken when there may be a need to change national currency, for example when the European Monetary Union nations decided to adopt Euro as their currency. In India’s case, this is a move to curb corruption and control counterfeiting by reducing the amount of cash available in the system.

There is no transparency or accountability for a significant amount of cash flowing through the Indian economy, with the money never entering the tax system of the county, hurting the Indian economy, and making the honest, working class Indian suffer. Due to large amounts of unaccounted money in the economy, the government is unable to collect enough tax revenues, prompting increasing of taxes, further impacting honest tax paying citizens. Rampant corruption exists because of a cash economy, as it allows the money to be unaccountable. Demonetisation may not completely weed out corruption, but it will enable the system to capture the flow of money.

This historical move is likely to have a significant impact because of being unanticipated, thereby not giving people any time to find means to park their black money. A cashless economy can help curb inflated prices, recapitalise banks, reduce interest rates thereby increasing capital inflow to the economy. Such monumental changes cause their share of inconveniences but recalibrating an entire nation’s economy is no small feat. Currently, only 2.6% of the Indian population pays taxes! The rest either don’t make enough money or siphon it off and bypass taxes. Accountability of the cash flow will help the system identify and keep track of the Indian currency, and control tax evasion. As Prime Minister Modi promised, it is a big leap towards building the “India of our dreams”.

Must take courses for MBA

An MBA is a very prestigious degree in itself, but today companies demand more than just a degree. They want their candidates to be all-rounders with an MBA degree. This is indeed a lot to cope up with for students. Thus, the choice of electives and many add-on courses makes a lot of difference in the future of the candidate.

Top 100 MBA schools in the world offer a variety of electives to choose from for whatever specialization the candidate has chosen to pursue. These should be the primary foundation for what to do in future.

If you have chosen marketing as your MBA specialisation then know what electives you can choose. Furthermore, do research and see what you can individually do to develop your CV. Probably taking online or certificate courses on online marketing or probably a personality development class will help a long way.

A specialisation in finance can be improved by a short term course on the stock market or any related short courses which can help you build your confidence level. These also add as a plus point while giving your interviews. 

Similarly in all other specializations in MBA, there can be a lot of add-on courses that can be taken up on the side. These help in the overall development of a candidate and also adds a feather to their academic record.

Learning a new language is especially appreciated by many MNCs as their employees can travel to different places with this advantage. An MBA graduate with knowledge of a foreign language can keep their passports ready as they are expected to travel and work in different places throughout the world.

Familiarity with software like System application products or SAP adds as a huge advantage. Companies search for people with this faculty within them as this gives the candidate an extra edge over the others.

Attending various workshops, seminars and guest lectures related to your specialization or interests also adds as an advantage.

GIBS, unquestionably a best b school in India, know that their students deserve best and thus, they provide some these facilities and many more as a part of the curriculum. It is no surprise that the students enjoy their life here and come out to be the best among the lot.

Case Studies during MBA

Case study method is a very popular methodology used in classes for MBA & Business Management students. In this method the students are given a particular case or file to study and they have to analyse and take a decision on the basis of discussion and thorough research.

This method is responsible for intensive study of a unit; students usually study about n number of cases which gives the analytical power to increase the knowledge and come out with flying colours. The case study method has been lauded for the encouragement it gives to students to interact and to discuss and develop solutions for a particular study.

Few of its advantages are:

• Builds Leadership skills

The idea of a case study is that it stimulates a pseudo real life work environment which lets the students take responsibility which in turn builds confidence and leadership skills. Taking firm decisions, getting their viewpoint across, and giving credit to subordinate when required are just some of the leadership skills that develops in the process. Furthermore, this helps them get ready for the real business world that they need to face after their graduation.

• Better than lectures

 Case studies involve a lot of analysis and in depth research. Although, this may seem boring, it is considered fun by many MBA students since they get to interact and share ideas. Many students who are pursuing the degree do not disagree that lectures are too much to take in but say that they prefer case studies as they are forced to think in various manner. It also helps them to experience the real human problem bring a sense of achievement.

• Decision forcing                          

The case studies that are provided to the students are quite complex and need time and attention to be solved properly. A decision has to be taken by the end of the project. This forces the students to think in a more creative and critical manner making them ready for the job.

• Role play                          

In trying to solve the problems posed in the case studies, students usually take a step towards a little bit of role play to better their decision. This helps them grow individually building empathy factor in them. This only strengthens as a positive aspect in their life.

• Quick decision making

Case studies helps students firstly to develop good decision making skills but more importantly how to do the same quickly. There are a lot of case studies that students will have to do during their MBA, thus, it becomes important to take concrete, plausible, and exact decisions.

One of the top B-schools in southern India, GIBS, keeps in mind the value and importance the case study method holds. Thus, students in our institution are encouraged and motivated to take them up to broaden their horizons.

The Eminence of Events & Happenings in GIBS Business School…!!!

Being Recognized as Top B School, the GIBS Business School interactively explores the most significant event opportunities in addition to the best academic path and an event which keeps track of all happenings in and around the Global residential campus. Student efforts to take the lead in learning and shaping the living environment in Beautiful Global Residential Campus. Perhaps one of the largest student-directed events conducts here.

GIBS understand that extracurricular-celebrations or event involvement is a key appliance to the student’s progress which focuses on the individual student level.  This plays an elemental role as it involves the entertainment, social, and amusement purposes, but most decided to promote their proficiency.

According to GIBS perspectives, for the comprehensive or the long-term development of the students, they need to allow in their areas of interest. This contributes a sole student an event to promote the undisclosed talents haunted within them.

Each activity in GIBS B School refers students a chance to perform with others which could absolutely gain the fundamental growth skills.

Here are some of the Major Events Benefits which would impact on student’s profile:

• Valuable Social Network: This means a great exposure.  Events at GIBS Business School are the powerful weapon for students as the number of social media platforms that they get to post.
• Global Movement: The evolution seeks to inspire new culture through continued events, the creative arts. Multicultural activities in B schools focus on increasing awareness and understanding of various cultures across the globe.
• Self Admire: This enriches GIBS MBA students with various specialties which include dance, musical interests, art & workshops etc. Also extending for students to learn and enjoy. Many more…

GIBS Believes the key to a smooth event is a lot of planning and commitment with the focused effort. Here in GIBS Campus, Management Students enjoys planning the composite events & being actively participate in activities, therefore they are focused on making life interesting & accomplished. This could lead them to have opportunities also endorse one’s leadership quality…!!!

How Residential Campus would influence you …???

GIBS B School was formed as a vibrant Residential campus under the Goyal Education Trust with the belief of research and development of a student to enhance their living & learning experience meaningful. Hence GIBS campus guarantees all kinds of facilities and amenities which will be readily accessible for all the students.

Here students get to learn distinctive perspectives from others who come from other towns, cities, states, or countries. Also students will get a chance to live with their classmates and friends. The research shows that students who live in campus will perform better academic achievement, social, recreational, and spiritual development too.

Well, Students have many advantages, as every day they have the chance to interact, impact and influence with faculty and staff. The chance begins right here. Such as;

• Students get the opportunity to involve in campus activities. This will certainly enrich their experience.
• GIBS Global Residential campus classes emphasize the knowledge for students and get to know their faculties as well.
• Students can Increase their chances of academic success and persistence.
• Students will have a fabulous way to meet people and forming long lasting friendships as it’s a lively social life.
• Student can save money when they live in residential campus, as they would not spend money.
• Students get the opportunity to participate in campus and student sponsored events.
• Students will have a Convenience and Time Management which is extremely important for today’s students.

Being a Reputed MBA Institute, GIBS culture influences the opportunities for students in learning and social experience through courses & university’s outstanding academic programs. The implementation of the plan will deepen the creative climate of the campus.

Residential Learning Programme represents a major transformation in One’s life. Here GIBS creates programs that bring students together structurally, intellectually and emotionally. This may build the commonalities and connections which are very much essential to our education and our society…