Ola, Paytm Gains With Ban Of Old Notes; Chaos At ATMs In India
The currency replacement scheme overnight by India is urging the people to pay online instead of opting for cash on delivery (COD). Internet startups for years have been trying to suggest it.
In the late evening of November 8 the Indian Prime Minister Narendra Modi announced existing currency notes of two biggest denominations, Rs 500 and Rs 1,000, would cease to be legal from midnight of the same day.
The move was cited to curb black money in Asia’s third-largest economy.
With a note of cooperation from the Indians the PM ensured a smooth transition of new currency notes would take place to ATMs and banks across the country in about two days.
The banks were shut down for public on November 9 and ATMs were closed too on November 9 and 10 to aid smooth replacement of the new notes of Rs 500 and Rs 2,000, newly introduced highest denomination in the country.
However, the replacement process was not so smooth as believed. What followed was total chaos. People in hundreds and somewhere even in thousands queued up at ATMs to stock up new currency notes.
Mobile wallet company Paytm and ride-hailing startup Ola grabbed the opportunity and it is reported they logged thousands of new registrations in the two days following the announcement of old currency ban.
Ola revealed they saw a 15-time increase in recharge volumes on its Ola Money e-wallet. Paytm witnessed huge spikes in traffic and transaction value.