Good topic, i was curious why know others had posted this question earlier since it is a gamechanger for the indian economy , cashless or otherwise, it has captured the imagination of the country and there are all kinds of opinions on the topic, some political, some economical , but for the most part the evidence for both sides of the argument is out there for all to see.
The demonetization is likely to have a positive impact on the startup community , and especially those interested in mobile wallets, bitcoin and online commerce, which constitutes a fair bulk of startup innovation going on in the country.
Unfortunately the banking system has been caught unawares, and the move to demonetize has exposed a lot of inadequacies in our banking system , especially the rural footprint of digital commerce, and even basic facilities for banking even.
The Cyber Security threat that all online transactions face is also likely to get a strong mention at startup related discussions, since tech entrepreneur's will be keenly looking to plug any loopholes in our digital economy, and be suitably rewarded for the same.
Specifically on the PayTM front, my experience with the local traders has been very dissapointing both prior to demonetization and even after the new wave of PayTm , FreeCharge advertising in support of the Governments move.
I spoke to a few chemists, Bakers, Dry Cleaners , Tea Sellers, Biriyani Sellers and their responses were as follows.
* The Chemists were averse to PayTM, as they were not aware of how PayTM / mobile wallets work.
* The Tea Seller & Dry Cleaner and Biryani Seller didnt have a bank account, and one of them said they have an account only in their Village.
* One owner of a Bakery agreed to install PayTm, but he doesnt use a smartphone , and is not aware of how to install / use PayTM.
* Couple of people also got a bit irritated when i wanted to make mini-Transactions using PayTM.
So there is more than meets the eye when it comes to demonetization paving the way towards a cashless economy, personally i think the way forward is not cashless, but plastic in the form of Rupay Cards for Indians.