The economic phenomenon in India that led to a surge in digital payment platforms like Paytm and UPI was the Demonetization in 2016.

Here's a step-by-step explanation:

1. On November 8, 2016, the Indian government announced the demonetization of all ₹500 and ₹1,000 banknotes of the Mahatma Gandhi Series. This was done to curb black money in the economy, reduce cash in circulation and promote digital transactions.

2. As a result of this sudden move, there was a cash crunch in the economy as the two denominations accounted for over 86% of the cash in circulation.

3. This led to a situation where people had to look for alternatives to cash transactions. Digital payment platforms like Paytm, UPI-based apps, etc., which were already in existence, saw a massive surge in usage and adoption.

4. These platforms provided an easy, convenient, and cashless mode of transaction, which was the need of the hour during the demonetization phase.

5. Even after the new currency notes were introduced and the cash situation normalized, the habit of digital transactions had set in among the people, leading to continued growth and adoption of these platforms.

So, it was the demonetization in 2016 that led to a surge in digital payment platforms like Paytm and UPI in India.

Question

The economic phenomenon in India that led to a surge in digital payment platforms like Paytm and UPI was the Demonetization in 2016.

Here's a step-by-step explanation:

1. On November 8, 2016, the Indian government announced the demonetization of all ₹500 and ₹1,000 banknotes of the Mahatma Gandhi Series. This was done to curb black money in the economy, reduce cash in circulation and promote digital transactions.

2. As a result of this sudden move, there was a cash crunch in the economy as the two denominations accounted for over 86% of the cash in circulation.

3. This led to a situation where people had to look for alternatives to cash transactions. Digital payment platforms like Paytm, UPI-based apps, etc., which were already in existence, saw a massive surge in usage and adoption.

4. These platforms provided an easy, convenient, and cashless mode of transaction, which was the need of the hour during the demonetization phase.

5. Even after the new currency notes were introduced and the cash situation normalized, the habit of digital transactions had set in among the people, leading to continued growth and adoption of these platforms.

So, it was the demonetization in 2016 that led to a surge in digital payment platforms like Paytm and UPI in India.

Knowee AI · Accepted Answer

The economic phenomenon in India that led to a surge in digital payment platforms like Paytm and UPI was the Demonetization in 2016.

Here's a step-by-step explanation:

1. On November 8, 2016, the Indian government announced the demonetization of all ₹500 and ₹1,000 banknotes of the Mahatma Gandhi Series. This was done to curb black money in the economy, reduce cash in circulation and promote digital transactions.

2. As a result of this sudden move, there was a cash crunch in the economy as the two denominations accounted for over 86% of the cash in circulation.

3. This led to a situation where people had to look for alternatives to cash transactions. Digital payment platforms like Paytm, UPI-based apps, etc., which were already in existence, saw a massive surge in usage and adoption.

4. These platforms provided an easy, convenient, and cashless mode of transaction, which was the need of the hour during the demonetization phase.

5. Even after the new currency notes were introduced and the cash situation normalized, the habit of digital transactions had set in among the people, leading to continued growth and adoption of these platforms.

So, it was the demonetization in 2016 that led to a surge in digital payment platforms like Paytm and UPI in India.

What economic phenomenon in India led to a surge in digital payment platforms like Paytm and UPI?Economic liberalization in the 1990sDemonetization in 2016The introduction of GSTFDI in the e-commerce sector

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