A Revised Outlook on Payments, Banking, Investments, Tax, and Everything Finance

The introduction of new currency has perhaps dampened the spirit to spend, or even invest. Since this situation is expected to be temporary, it is worthwhile to revisit your options. It is also advisable to adopt e-banking; in a few months you will be required to file your IT returns.

Speculation is high for real estate prices to crash. And people are wary about investing in stocks. Inflation is expected to go down. There are many opportunities to invest in assets or through other financial channels, to leverage growth in your personal funds. On the flip side, there can be a temporary hit on cash-driven companies, such as e-commerce or the automobile sector.

Consumer sentiment is upbeat about receiving better returns on shares. They are likely to explore more affordable options for buying a home. From a business perspective however, the resale property market might take a hit.

People are expected to bear the brunt like the fall in bank fixed-deposit interest rate. Demonetisation has opened up plethora of opportunities, and at same time, created economic havoc.

Even the economy is in a wait-and-watch mode. Already, there is an economic activity slump in India, which is being considered temporary. The Government is pushing hard for cashless economy. And though there are plenty of reasons to seek digital asylum at the moment, people are making an extra effort to withdraw money in every way possible, the long queues outside ATMs and banks are proof of it. There is indeed a big challenge facing the government to realise its digital goals.

Even in the metros, there are many who have not adapted to e-transactions. Their apprehensions of ‘risking’ a transaction online are to do with keying in personal details such as PIN number, password etc. The whole perception about digital transaction needs to be changed, and the common man should be made aware of digital benefits like faster processing of tax and quicker refunds.

The Indian economy is also slowly shifting from savings to investments. Life Insurance has penetrated faster, whereas health insurance has seen a very modest growth. The younger population base of home buyers is seeking home insurance, for any life collateral damage. If you have taken a home loan, isn’t it better to secure that amount, and therefore your property, in case of any calamity?

Overall, we can expect interesting times as people get influenced by changes in the political and business administration.

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About The Author

Vijay Soni