Being termed as “short-term pain for long-term gain”, the self-imposed cash crunch by the government has 2 faces to it, the good and the bad. The move is definitely imposing a structural change in how India functions and encouraging the adoption of use of plastic and electronic money. The transition to a cashless economy will improve savings in financial assets which will benefit banks, NBFCs, micro-finance and fintech. On the other hand, the currency crisis has severely affected traditional businesses, MSMEs, real estate, travel & tourism and restaurants that rely heavily on cash for daily operations.
So, what are the sectors that are clear beneficiaries of the move and which sectors have taken a fallback? Also what are the customer acquisition strategies you should bear in mind to bounce back?
