The New Cash Cow

Shiva Kumar runs a provision store at Attibele, a semi-urban area on the outskirts of Bengaluru, next to Hosur in Tamil Nadu. He mostly sells groceries, vegetables and other FMCG products such as soap, shampoo and hair oil - goods that are always in demand among his shoppers, many of whom travel an hour or more to go to the 'city' for work. And much like the majority of Indians, they had always paid in cash, before demonetisation.

All that changed on November 8 last year when the government banned Rs500 and Rs1,000 notes, withdrawing about 86 per cent of the total currency in circulation. Even after six months, Kumar's customers find it difficult to access cash as ATMs often run dry. "Even when they have cash, some people give me Rs2,000 notes for purchases of Rs120. Where would I get change for that?" asks Kumar.

Initially, he used to extend credit to his customers (till they have enough smaller denomination notes to pay the actual amount), but monitoring credit was becoming a challenge and hurting his margins as he had to pay his dues on time. So, when an agent from a leading public sector bank told him about a hassle-free micro-ATM - basically a smartphone attached to a fingerprint reader that validates a buyer's Aadhaar ID and bank account details, and enables digital payment, all via a mobile application - Kumar decided to give it a try.