A survey carried by CRISIL stated that, nearly 41% of micro, small and medium enterprises (MSMEs) have seen substantial shift to cheque and electronic payment method post demonetisation.  

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CRISIL's survey involved discussion from more than 1,100 MSMEs between November 24 and December 24. 

Ashu Suyash, Managing Director & CEO, CRISIL: “It is heartening to see this marked shift to cheque or electronic payments, especially in the traditional, cash-intensive sectors such as textiles, agricultural products, electrical equipment, steel, consumer durables and automobiles. Given that these are the core sectors of the economy, a move to ‘less-cash’ transactions will eventually transform business models in the MSME sector.”

He added, "MSMEs located in Tier 2 cities and smaller towns have witnessed a significant shift (42% of respondents) to cheque or electronic payments, indicating that the transition is geography agnostic, and, therefore, has greater implications in the way transactions take place in small cities and towns.”

Interestingly, from the survey it was noted that MSMEs with annual turnover less than Rs 2 crore witnessed more shift in the electronic platform than compared to those companies holding revenue over Rs 25 crore. 

As per Crisil, "This may also be because non-cash payments are already prevalent among mid-sized players."

For smaller companies Crisil stated that the shift is expected to bring in long term benefits via quicker transaction processing and better record keeping.

On November 08, PM Narendra Modi-led panel decided to demonetise 86% of India's currency Rs 500 and Rs 1000 respectively, as a measure to tackle black money.