Call it the surgical strike on black money, or a ’draconian decision’ if you will. The truth is that the Prime Minister is strong on digitisation of currency and hard on hoarders of black money. But the move does not leave the common man unscathed. The overnight scrapping of the Rs. 500 and Rs. 1000 denominations came as a bitter surprise for the people who were holding their cash for larger transactions.
While the nation came together on social media to celebrate the bold move with jokes, trolls and memes, one forwarded message on Whatsapp really caught my attention. Here’s the screenshot:
And it just struck me – the wedding industry is going to take a very big hit because of this impromptu move.
Black money comes from Shadow Economy, but what is a Shadow Economy?
1. The truth is that the size of the shadow economy operating in India is the almost 20% of our GDP.
2. This “Shadow economy” is made up of all sorts of cash transactions ranging from the innocent Rs. 15 you pay for your sabji-wallah to the 15 crores a dirty politician may have stashed aside.
3. Not all of it may be illegal, but most of it is unaccounted for.
But almost nobody uses cards in most of (rural) India…
1. The thing is, almost 80% of the wedding market operates in cash. You pay almost everyone from the pandit-jee to the DJ to the venue owner in cash, and from the midnight of November 8 2016, that’s a problem.
2. Many of you may have already set your plans in motion and your payments aligned to pay the caterers, photographers, decorators etc.
3. You may have also paid the advance booking amounts, and are stuck because there’s no way they are going to accept the old notes, and putting that cash back in the bank would raise eyebrows.
4. This instinctive shortage of the ability to render as well as accept huge amounts may have a short term effect on the costs of these services. For taxation reasons, many vendors will avoid large amounts altogether and accept smaller amounts in total “white” transactions while the industry figures a way to either crawl their way out of this pickle or go “all-white” in all the future transactions (till the new Rs. 2000 denominations kick in at least).
Is there a solution to this dark, dark problem?
Yes, there is! The only best way to tackle this situation is if your vendors start accepting payment by credit card.
In come the cashless transactions: As you saw Vijay Shekhar’s (CEO, PayTM) tweet or if you saw their full page Ad on 10th November’s Hindustan Times, going cashless is the most hassle free way to do business.
Keep the money digital. Superb step by our dear PM @narendramodi
From a bit inconvenience to incredible bold step ! #win #??
— Vijay Shekhar (@vijayshekhar) November 8, 2016
Line of credit: By using your Credit Card, you get a substantial line of credit, and your wedding schedule doesn’t suffer at all.
We’re here: So, we as Wedding Problem Solvers by DNA, had begun working on this since day one, and have already introduced safe and secure Credit Card and Debit Card payment facilities for all the vendors on our platform.
We will help you get your favourite vendor on Shaadismart.com and set you up for the balance payments as well, and also help you look for other vendors – fikar not.
Simply give us a missed call on +91 7498-17-8084 and we’ll call you back with the details. Or, you can click here to look for the best wedding vendors in Mumbai.