Why 2016 watershed year fintech india

Why 2016 was a Watershed Year for Fintech in India?

Why 2016 watershed year fintech india

The year 2016 has drawn to a close and it has seen rapid strides made by fintech industry in India. A large market base, encouraging government policies and a start-up space that is driven by innovation and encouraging VC funding has led it to be in the forefront of growth.

Having spent close to 15 years in financial services in the US, I have always believed that technology will be key to realizing the large potential of financial services in India, where about 40% of individuals and almost 90% of small businesses do not have access to formal banking and financial services. Physical distribution driven traditional financial services models are just not economically viable for this large unbanked population, and that’s where Fintech will change the game.

NASSCOM has predicted that India’s fintech market will touch USD $2.4 billion by 2020.

In a lot of ways, 2016 has been an inflexion point when many factors and policies have come together to put the sector on a path to this exponential growth.

Let’s try and understand this further.

Key Changes in 2016 that will Enable Fintech Growth in the Coming Years

Continued Growth in Mobile: 

Almost 65% of working population in India is below 35 years of age. This segment is rapidly adopting technology. More than 220 million people had smartphones in 2016 which had surpassed the 200 million smartphone users in the US. Mobile internet is growing at a blazing pace (thanks to companies like Jio). Mobile internet penetration had increased to almost 40% in 2016 for the millennials and is expected to grow faster in 2017.

This will lead to growth of digitally connected users using mobiles as their preferred mode for shopping, payment and even banking services. Fintech companies are seeing this as a great opportunity to offer a bouquet of services to capture this new user base.

Progress on India Stack: 

The government has been putting policies in place with its Digital India, Jan Dhan Accounts, Demonetization and other initiatives to give a definite thrust to digital economy.  Last year saw the platform being put in place for UPI, Aadhaar based eKYC, digital signatures etc. to enable ease of use of financial services and make regulatory processes simpler.

Shift towards Digital-friendly Regulations: 

2016 also experienced regulatory bodies like RBI and SEBI setting up policies to enable use of digital technology for financial services. As an example, Aadhaar based eKYC now allowed by SEBI allows KYC to be done digitally for mutual funds investments in just a few minutes, as compared to physical paperwork that often takes a few days to complete.

Growing Shift to Cashless Transactions:  

Adoption for electronic payment services saw a huge upswing in 2016. Mobile wallets like PayTM, FreeCharge and Mobikwik grew significantly driven by massive investments by both mobile wallet companies and banks, with several banks launching their own wallet solutions like PayZapp from HDFC, State Bank Buddy and so on. Demonetization towards the year end has offered a new catalyst to cashless transactions.

Opportunities for Fintech in 2017

Wallets and electronic payments will serve as a great entry point for the large number of unbanked users to formal financial products. Wallet users will over time get more comfortable with using other financial service products like wealth management, insurance and lending products offered by Fintech firms. From that perspective wallets are creating the market for other fintech products.

While we saw significant growth in 2016 in mobile payments, I believe 2017 will see emergence of two new growth areas for the Fintech space.

Investment Services:  

This is one of the most under-penetrated segments in the financial services space in India.

We have almost 7x more money sitting in people’s bank accounts and FDs than in Mutual Funds in India.

In a survey at Money View, we found less than 15% of professionals under the age of 35 years investing in mutual funds. A large majority still save in FDs  even though FDs provide 2-3% lower annual returns than debt mutual funds (low risk - higher return investment instrument).

A big reason for investment services being largely un-tapped is reliance on physical distribution channels relying on bank relationship managers and brokers. They prefer to only approach higher income investors due to high customer acquisition and servicing costs. With the progress we have seen in digital platforms and government policies as explained above, I believe this segment is slated for massive growth in the next 2-3 years.

To quote my own experience, we launched Green Account in mid 2016, an investment option for Money View users. Using this option a user can open a new investment account and put money in mutual funds - all this within 1-2 minutes using a completely digital process from within the Money View app. In a short period since launch, we have already seen the investor base spreading across more than 80 cities in India. This was only possible through use of technology to make such products accessible, simple to try and convenient to use.

Consumer Lending:

We saw a few start-ups like Lendingkart, Capital Float, etc. innovating and making good inroads in the small-business lending space in 2016. However, one area that remains largely underserved is the consumer loans space.

As per World Bank Findex 2014, 46% of adults in India took a loan in the last 1 year, however only 15% of them took a loan from a bank or another formal financial company. The remaining 85% of these borrowers had to rely on informal channels like money lenders, friends or family - often paying ridiculously high interest rates.

A large part of the reason banks are unable to extend loans to these people is the lack of mechanisms for them to access creditworthiness of these borrowers. Fintech companies are ready to change this is by using different models for assessment of creditworthiness based on transactions, social interactions etc. They can then use risk-based pricing to present the right offer to the borrower based on his/her financial capability and risk.

Also the loan approval time by a traditional financial institution varies from a few days to months while a fintech company can approve a loan in minutes using automated models and digital technology. This makes them attractive to loan seekers.

Expect to  see some big innovations in the consumer lending space in the next 12-18 months.

Challenges and The Road Ahead

India’s fintech segment has a great disruptive potential to offer faster, easier and more convenient financial services to the end user taking advantages of the rapid spread of technology, mobile and digitization in the country. Yet, the biggest challenge is to build the trust factor. Indians have been traditionally conservative especially when it comes to trusting their money with an entity that does not have a track record that a traditional bank or NBFC has.

This is an opportunity for fintech companies to build awareness and trust and supplement that with offering services that are useful and easy to avail of.

2017 will carry forward the good work of last year for fintech.

One thing is for certain, the consumer will be spoilt for choices in the coming year.

Puneet Agarwal is the Co-founder of Money View.

Top 10 Posts on Money View Blog in 2016

Top posts on Money View blog

As the year draws to a close, we look back at the Top 10 posts on Money View blog this year. This year has seen the blog go from strength to strength as we climbed to being among the Top Indian blogs in Finance in India in many ratings as well as being the Top 100 blogs in Finance globally.

Here is a recap of our 10 most popular posts by pageviews this year:

My Personal Finance Story: Savings for a Middle Class Income

An evergreen post, this post originally published in 2015 garnered thousands of views this year. Soumya shared her story of savings for a middle class income which struck a chord with our audience. If you have not read this post, you really must now.

Find ATM with Cash Near You with Money View

This post based on Money View’s useful feature to locate a functioning ATM/bank branch along with cash dispensing Big Bazaars, Inoxes and petrol pumps got a huge thumbs up from readers. Not very surprising, considering the post demonetization scramble to find ATMs/bank branches with cash.

4 Financial Milestones to Reach by Age 30

If you are in your 20s or have turned 30 then this post is a must-read for you. It will put you on the right path of setting your financial milestones.

How I Did a Two-Week Europe Trip in Under 1.5 Lakhs

My personal tale of visiting Europe in a budget was very well received by the readers of this blog. It was also widely shared on Facebook and Reddit. If you are looking to vacation in Europe, then this is a post you have to read. It has some useful inputs.

7 Money Habits to Learn by 30

This is one post that really struck a chord with our audience in their 20s as it explored money habits that you must learn by 30. They will surely hold you in good stead for years to come.

A Lazy Person’s Guide to Getting Rich

Isn’t this what most of us aspire to do? No wonder that this post did quite well this year. Don’t you wish to read and find out what our guide says?

4 Financial Mistakes You Will Regret at 50

This post mentions the 4 financial mistakes we all must avoid making by 50. This post got quite a few eyeballs.

7 Incomes That Are Tax Free in India

This evergreen post provides some valuable inputs about incomes that are tax free. As we all get into tax planning in the last quarter of the year, this post is very useful to read.

6 Things You Must Stop Wasting Your Money on Right Now

I found this post personally very useful and a good reminder to curb money wasting habits. Let’s just say I am working on these habits.

Why Liquid Funds Are Better Than Deposits in Savings Bank Accounts?

Most people are not aware how liquid funds are so much better than keeping money in savings bank accounts or even FDs. This post is very useful from an investment point of view. No wonder it was among our Top 10 posts for 2016.

Hope you have enjoyed our posts this year. Please do leave any feedback or suggestions that you may have in the comments. We will continue to provide you excellent articles right through 2017.

From all of us at Money View, here’s wishing you an excellent and financially fit 2017!

investments help you save income tax legally

What Investments Can Help You Save Income Tax Legally?

investments help you save income tax legally

This article is the first one in a 5-article series on ‘Guide to Saving Income Tax Legally’.

In this series, we will discuss everything from investment options which help save income tax to striking the right balance between different tax saving options.

We start with the roundup of all types of tax saving investment options available out there.

India ranks high when it comes to tax evasion. In fact, according to data released by the government, just 1 percent of Indians paid taxes in 2013*, which is one of the least compared to many advanced democracies in the world.

And for those who do pay, they lose by paying more taxes than required due to inadequate information.

In this list, we look at all tax saving investment options which help you to save taxes legally under (Section 80C) :

Equity Linked Savings Scheme (ELSS):

ELSS investments are considered to be the best option when it comes to tax saving investments. These are equity schemes which have the same amount of market risk as diversified mutual funds.

They have consistently given twice as much returns as Fixed Deposits averaging between 16-23%

Since they come with a lock-in period of 3 years, any capital gains are long-term by default, thus shielding us from the taxes and safeguarding against market fluctuations.

Their investments, gains and withdrawals all are tax-free and have zero management cost.

Within ELSS, there are growth, dividend and dividend reinvestment options. Growth is a cumulative option allowing your investment to grow till maturity, dividend gives you periodic tax-free dividends, while the reinvestment option gives you additional units in respect of the dividend payout.

Employee Provident Fund (EPF)

It is an employee benefit scheme allowing the salaried class in the private sector to park a part of their salary (12% of basic plus DA) with the government.

Managed by the Employees Provident Fund Organization (EPFO), it helps employees in the event of retirement, disability, sickness, or even unemployment. An additional benefit is that your contribution is matched by the employer. The total amount deposited with the government earns a fixed Interest rate every year but can only be withdrawn tax-free after 5 years, unless it is required for the specific purposes.

The returns in EPF are 8.8% this year, all tax-free.

Public Provident Fund (PPF)

This product is like EPF, but an employee can invest in PPF on their own. Say if you have some extra savings and want to avail the benefits of EPF, you can open a PPF account with a bank directly. Your employer won’t be involved here. Government invests the money in various projects they undertake and pay you a fixed Interest rate every year.

Investment in PPF can be up to 1.5 lakh (tax-free) starting from Rs 500, and the current interest rate is 8%.

Both EPF and PPF are classified as debt instruments (earning a fixed interest rate). Though the maturity of EPF is based on the employee’s service, PPF has a lock-in of 15 years, allowing first withdrawal after 5 years.

investments help you save income tax legally

Long-term Fixed Deposit (FD)

The most common debt instrument in India, one can just walk to a bank and open a Fixed Deposit (or just go online and invest). Intended for people who want regular fixed income, FD provides you with a better interest rate than the rate on a Savings account until the defined maturity date.

However, no premature withdrawals are allowed if you are to avail tax benefits. Even so, the Interest income is taxable.

One can invest from anywhere between Rs 100 to 1.5 Lakh. You get an interest of 7% - 7.5%.

Term Life Insurance

One of the fastest growing sectors in India, life insurance products come in many forms and cater to the investment needs and objectives of varied investors. The ones providing tax benefits are referred to as term Insurance policies.

Though they don’t provide any capital appreciation throughout the tenure of the policy, they pay the insurance cover (sum assured) in the event of an unforeseen demise of the policyholder.

Unit Linked Insurance Plan (ULIP)

A product offered by insurance firms, ULIPs provide the dual benefit of risk cover for the policy holder along with investment option. The premium paid by the investor is partly used to provide insurance cover and the remaining is invested in the various financial instruments.

Investors have the option to choose the type of investment (debt vs. equity or both) based on their needs and risk appetite. The units they are allotted have a Net Asset Value (NAV) that changes on a daily basis based on the performance of the market.

The biggest benefit is that ULIPs provide for tax-free gains and surrender charges after 5 years are nil. In the case of premature exit, a surrender value is payable to the holder which is expressed as a percentage of the fund value (this varies depending on what the insurer would include in the surrender charges, and can be clarified upfront).

The premiums are much higher than term insurance plans though and exiting immediately after the initial 5 years is not recommended. These are more of long-term instruments.

National Saving Certificate (NSC)

These are savings bonds floated by the Indian Government. They are primarily used for small savings or income tax rebates. They can be purchased from Post Offices for 5 (gets you 8.5% return) or 10-year tenures.

One can also avail of loans against them, but the primary purpose for many is tax savings. However, the Interest income is taxable depending on the tax slab you fall in.

A minimum of Rs 500 is needed to invest in them.

Some other options 

There are other ways to save on taxes too, apart from Section 80C:

  • National Pension System (NPS): An exempt-exempt-tax (EET) product, 60% of the corpus is taxable while the rest is not. This scheme allows for an additional tax benefit of Rs 50,000 over and above the Rs 1.5 lakh exemption allowed for Section 80C instruments. If your mobile number is linked to you Aadhar card, you can invest by logging into NSDL website and following the steps.
  • Section 80D: This is to allow tax deductions for self/family and parents on the medical insurance premiums paid. There is an additional exemption to the amount of Rs 5,000 on health check-ups also. This all is in contrast to the rebates allowed in Section 80C which are on the investments made in a range of financial instruments.The exemption is for Rs 25,000 for self/family, with an additional exemption of Rs 25,000 for parents if they are covered as well. In case any of self/family or parents are senior citizens, the exemption becomes Rs 30,000.
  • Company Tax Reimbursements: Companies also provide a few ways to allow for tax benefits to their employees. Most common are the petrol expenses if the vehicle is used for official purposes, spending on newspapers or magazines that allow for one to excel in the field they are working in for the firm. There could be other ways to save as well depending on benefits certain companies provide.

With so many options available to save on the tax outgo, why not use them fully to our benefit and pay the taxes we then owe to the government? After all, these are then used for the progress of our own country!

*Statistic sourced from here

Read next articles:

PPF, EPF or FD -- Which is Better for Tax Planning?

Is Insurance a Good Way to Save Taxes?

Alok is an Engineer (Gold Medalist), MBA in Finance from IIFT, and FRM certified. He has worked with many renowned Investment Banks in the US. He loves traveling, photography and manages his portfolio of investments in the Indian Stock Markets. He also writes at alok-singhal.com

Top 20 Finance Blogs of 2016

top 20 finance blogs 2016

2016 is almost over. For me, this year flew by faster than 2015. Do you feel the same?

If you read posts on this blog often, you will realize that saving and investment are not fly-by-night events. They take time, patience and effort. And yes, the discipline of learning constantly.

Here are the top finance blogs of 2016. They will keep you educated about all you need to make your money work for you.

I have sorted the blog into three categories viz. Money Tips, Habits and Insights.


Long-term vision is important to achieve financial goals. But it’s important to not lose touch of short-term actions to get there. Here are blogs which offer everyday tips to improve your savings and investment.

Apna Plan

This site is handled by Amit, an MBA. He is also certified from the NSE in Mutual Funds, Capital Markets, Derivatives Markets and more. Apna Plan is a repository of knowledge from retirement planning to tax management, smart shopping and more.

Jago Investor

As the name suggests, this blog helps people become more investment-savvy. Handled by Manish Chauhan, it offer insightful information pieces for free. JI also offers a pro membership, which provide analysis reports, goal-based planning, health insurance and more.


A blog of a service with the same name, Scripbox offers many nifty everyday money tips. From lessons on money to managing funds during sale periods, tax payments and investment, you can get insights into many small actions which you otherwise tend to overlook.

Stable Investor

Dev Ashish, a SEBI-registered Investment Advisor, started this blog about five years ago. He helps individuals manage their money better to set (and achieve) personal financial goals. His posts are reliable and insightful, and show that investment is not as difficult as we think.

Cash Overflow

Cash Overflow is another popular financial blog, started by Pardeep Goyal purely as a hobby and interest in finance. He shares results from personal experiments to save money through credit cards, travel and shopping. He believes that we must be smart misers, save at the right avenues and focus on secondary income sources too. Do give his blog a dekho.

Money Excel

Money Excel excels in tips to invest in the stock market, personal finance and tax management. It also shows how you can leverage the latest happenings in the world to stay financially sound and sorted.

Value Investor

Through this online diary of over five hundred blog posts, Rohit Chauhan shares his approaches to picking undervalued stocks. He also analyzes numerous Indian companies. He has been interviewed by experts, and is respected for his opinions on the Indian stock market. A financial blog for you to follow if you want to make money in the stock market.

Bachat Khata

Founder Gopal Gidwani provides comprehensive views about various topics across the financial sector. Readers stay updated with information in the financial world. You will get suggestions to invest in mutual funds and tax vehicles, the latest financial initiatives by private sector companies and the government and more. You also can get insights about availing and managing loans, and tips to renovate your house.

Nitin Bhatia

A good blog to follow if you want to know more about investment suggestions for Real Estate, stocks, everyday finance, home loans and more.

Money Schooled

Run by Jane Hwangbo, this blog offers a different perspective to look at money. It encourages us to look at money as a means to an end, instead of an end in itself. Read it and you will stop feeling guilty about the desire to earn more money.

Free FinCal
This website is filled with personal finance, DIY investing and money management tips. It offers free MS-Excel based calculators which you can use to better understand your spending and investing habits. It was started by an IIT Chennai professor and is one of the most renowned financial blogs in India.

Money View

A blog of the money spend tracking app by the same name, Money View blog is filled with tips on saving for various goals. From information and tips on buying a home, vacation, hacks, to retirement, tax planning, news, views and analysis.

It also offers tips to strengthen your investment portfolio, and how new policies affect your finances.


Investment is not a skill you can develop if you don’t follow the right habits. Like everything good in life, investment is a result of discipline and an in-depth understanding. Not just of your own mindset, but how the world functions too, so that you can make the right calls. Follow these blogs to develop good finance- and personal-life related habits.

Safal Niveshak

If you read my listicles, you will know that I’m a fan of Safal Niveshak. Run by Vishal Khandelwal and Anshul Khare, this blog focuses on mental models, and how they align with investment. It also offers a weekly roundup of the best articles from around the world. Read it not just to improve your investment, but also your thought process.

Farnam Street

Another favorite. Shane Parrish focuses on mastering what others have figured out. His posts outline lessons on what makes us irrational. Reading this blog won’t just make you aware about poor investment habits. It will also change your perspective on life.


Investment is not an end goal, nor is getting rich. These actions should be motivation for a larger goal. The Subramoney blog highlights best practices for earning and investing money. It also sheds light on the significance of a long-term strategy.


Okay. So you have habits and tips all covered. But to invest in the right vehicles for the long term, you should know what the future holds. Of course, no one can predict the future. But these blogs will provide insights into where the future is headed - nationally and globally.

ET Blogs

The Economic Times blogs offer brilliant insights into national and international events, insights that the media chooses not to cover. From decoding landmark events and government policies to discussing beneficial steps, these opinions will provide rich insights into potential fields where your investment will grow quickly.


Seemingly banal events can have far reaching consequences. Chaos Theory states that a butterfly flapping its wings in Japan can cause a hurricane in Hawaii. As the name suggests, Freakonomics suggests on these freakish events of nature. A terrific blog to learn how to uncover underlying patterns to everyday tales.

Money Control

Arguably the most popular financial blog in India, Money Control needs no introduction. It provides not just the latest news and happening from the world, but also opinions which can let you plan for the long term.

Financial Express

The blog of another financial newspaper similar to the Economic Times, this one also offers insights to understand the market environment and sentiment better.

Equity Master

A popular portal which has its hand on the market’s pulse, it offers two types of newsletters - free and premium. It is a rich source of research reports, recommendations, and information on trends of the stock market.

Here is wishing you a peace and prosperous 2017. May all your financial dreams come true.

Vishal is the founder of Aryatra, a venture to help individuals improve their productivity and live more fulfilled lives. He also is a digital marketing consultant helping businesses generate revenue from their online presence.

Check These Money Matters in the Last Quarter of the Year

Last quarter of the year is marked with festivities, weddings, and parties. But this year demonetization has brought the entire country on its toes. We all are concerned, paying extra heed to our financial matters. Personally, to streamline my finances I do the following in the last quarter of the year. Read and double check your finances and walk into the New Year with confidence.

Double Check That All Premiums Are Paid

My husband and I have a few policies. Though, we get reminder letters for the payment of premium, there is still a chance that we miss paying one. It happened with us once. We were traveling for a month and missed both the online and letter reminders. I recommend double checking that premium on all policies is paid. Also, make sure the receipts are stored correctly for tax filing.

Cancel Cards or Memberships You Don’t Use

We all have multiple store cards and credit cards as opening most of them is free. This is a great mechanism used by companies to attract new customers. However, after a year, a majority of them start charging membership or annual fees. In case, you don’t use these cards, cancel them before you get a letter asking for payment. This is a great way to declutter your wallet too.

Keep a minimum number of cards that have better options, payment plans or lower interest rate. Do the same with Gym or Library Membership. There is no point paying for services you don’t use.

Start Organising Papers for Filing Tax

Income tax returns are due in the first quarter of the coming year. Rather than hassling at the last minute, it’s advisable to organize your paperwork now. Start collecting payment receipts of deductibles. Check if you are eligible for more deductions and how to avail it? Sort your receipts, arrange your paperwork, and if you have room to make an investment, do it now.

Review Financial Resolutions Made at the Beginning of the Year

Last quarter is a reality check, at least for me. I check if I am able to stick to the resolutions I made in the first quarter. Check whether you saved enough for your dream car, is your portfolio performing the way you expected and are you able to keep a tab on your expenses? This will serve as a checklist while setting the budget and financial goals for the next year.

Check Your Savings, Credit Card, and Demat Accounts

We get monthly or quarterly statements from our banks. Year end is the right time to look into all those statements to see any wrong debit(s) in your saving accounts. Look at your statement closely, you may find something that needs to be taken care of. Do the same for your credit card and demat accounts. Look for processing fees, overcharges or unexplained debits. Spend more time on Demat Account, check how your portfolio performed, calculate income for filing income tax returns and take note of dividends especially if your Demat is not linked to a Bank Account. Tally if you’ve deposited all dividends in your bank account.

Revisit Your Spending

Sit back and revisit your spending. In case you make accounts, it would be very easy. If not, think of all the expenses you could have avoided in the past three-quarters. For example - in my household, the expenses of bottled juice have increased in the last four months. My husband has developed a liking for a certain brand. The retail price of this brand is more than double as compared to buying it in wholesale. Last week, we found a store where we can buy it in bulk to save money. You can do the same with your new expenses. Remember, there is always a way to reduce at least one of your grocery expenses.

Take Account of your Monthly Expenditure

Inflation has been a concern for many years now. Checking your monthly expenses gives an overview of your expenses. In the last quarter, the first thing I suggest to do that may help to curtail some expenses - call your internet, dish or telephone provider(s) and ask for a better plan. Tell them that their competitor is offering a better plan. In my experience, they generally offer a better deal for fear of losing an existing customer. Second, make a note of services you seldom use and discontinue them. For example, monthly car cleaning or contract for an electrician for repairs. Doing these would help in bringing down the monthly expenses a bit.

In case you have any suggestion that may help us better, please leave it comments below. Also, I would like to recommend our in-house MoneyView App that is very handy to manage and tabulate expenses all year around.

A Company Secretary by profession, Saru found her true calling in writing. She blogs at sarusinghal.com which she religiously updates every Monday for the last five years.

My Money View Story Mufeed student

My Money View Story: Why Mufeed Feels Every Student Must Have Money View

My Money View Story Mufeed student

Today we have the pleasure of featuring Mufeed Areekkan in our Money View story section.

Mufeed is a first year B.Tech student at NIT, Kurukshetra. Born and brought up in Kerala, this is Mufeed’s first time far away from home. In the time when he is not polishing his Hindi or looking for a place to eat food similar to home cooked food, he is taking stock of his finances.

Mufeed is a conscientious spender who is much more aware of his spending habits as he moved away from home. Now each month, he keeps tabs on how much he spends so that he knows how much money he has to ask his parents for.

How Money View Came into Mufeed's Life?

It was just a year back that his parents bought him a smartphone.

Being a person who likes to be careful of his spending, he downloaded the Money View App from Playstore. He did try out a competitor app as well but deleted it when he did not find it comparable to Money View’s features. He has been using Money View daily since then.

Money View Features that Mufeed Loves

Mufeed uses Money View as an expense tracking App. He methodically inputs every penny he spends, even the cash, daily. He loves the weekly and monthly spend patterns that the App displays.

He uses the Budget feature to keep tabs on his spending. And he has been able to save some money every month due to the disciplined spending habits that Money View has helped him cultivate.

He also loves the Split feature which lets him split expenses with friends.

Since he is a student and does not have any disposable income, he does not do any investment as yet.

Why Money View is Essential for Students

Mufeed maintains that Money View is an App that every student must have. He believes that as one slowly lives away from parents and manages their own finances, it is easy to lose track and go awry.

Money View keeps you both conscious and conscientious of your spends.

A Special Word for Customer Support Team

Mufeed praised the customer support team at Money View which is very prompt in responding to queries and feedback. He had a special word of praise for them.

Find ATM with Cash

Finally, demonetization has not affected him much in Kurukshetra. He does most purchases online except for eating out and sundry small purchases.

He is also fortunate to have a functioning bank branch and ATM within his campus and hence has no trouble in withdrawing cash. He did check out the Find ATM with cash feature on Money View recently only out of curiosity. We hope he continues to stay lucky with money.

It was a pleasure talking to Mufeed and hearing how Money View has facilitated his life.

If you want your Money View story to be featured on Money View Blog, do write to us at blog@moneyview.in.

Demonetization After Effects -- How is the Implementation? #MoneyViewChat

The after effects of Demonetization are now filtering in. First pay day after demonetization and queues and cash outs welcomed people at banks and ATMs. Naturally, we wanted to find our community what they thought about the after effects and the implementation.


The obvious benefits are people going cashless and using digital modes of payment wherever possible. Of course, we are planning our expenses better and spending much less cash than we normally do. The larger impact perceived is on black money and corruption. Those can be measured only in the longer run though.


The biggest pitfall in implementation is the acute shortage of cash that does not seem to abate. On the positive side, more money coming into banks, better sales of banking products and wallets.



Better planning is definitely what most of our community feel that could have been done better. Prepare infrastructure for cashless or phase out currency gradually could have been other steps to better the implementation.


Real estate, agriculture and daily wage workers along with small businesses are those perceived to be most hit by demonetization.



Yes, shortage of cash has been a huge dampener. If that were managed better, this would have been a great move. For many their daily lives and livelihood has been disrupted according to our community. People are adapting as best as they can, helping each other out and taking to digital payments.

With this we rounded up another session of #MoneyViewChat. Do join us every Thursday at 7 pm for some fun, chatter and information @MyMoneyView.

demonetization wealth generation

Demonetization: Will It Transform How We Generate Wealth?

demonetization wealth generation

Demonetization is one of the most significant events of our generation which is expected to be a game changer for the Indian economy.

The current state seems confusing with constantly changing policies of the RBI and the government. But, once the dust settles on the implementation challenges over the next few months, this would be a turning point particularly on how Indians invest and create wealth.

Indian Mutual Funds Industry

Indian Mutual Funds industry is quite small currently compared to the same in other countries. Although India has the 3rd largest GDP (by PPP), we are number 18 in the size of the net assets invested in capital markets.

Net Assets by Country (Million USD)

demonetization generate wealth
Source: ICI Global, Data as of Q2 2016.

This is surprising because mutual funds have consistently delivered higher returns in India as compared to real estate and FD as investment asset classes over the last 10-15 years. Yet, more than 85% of people below 35 years of age have never invested in mutual funds or stocks. Demonetization will change this in a big way.

How Will Demonetization Change This?

Returns from Real-estate & FDs will shrink in the post demonetization era

We can expect a 20-30% correction in house and land prices in certain markets. Real-estate has traditionally been one of the parking grounds for undeclared money. This has lead to artificially inflated prices in this sector. With demonetization, this sector will be the hardest hit and become less attractive as an investment option over the coming years.

FD, another major investment destination, will also become less attractive due to decrease in interest rates driven by increasing cash (CASA) with banks. We have already seen one-year FD rates fall since demonetization, with most large banks now offering around 6.75% for a 1 year FD. Expect the rates to fall further over the next 6-12 months. 

Mutual Funds will become even more attractive

Demonetization will have two key impacts for the economy in the medium to long term –

  • a) Falling of interest rates due to increasing liquidity in banks from the collection of Rs. 7-10 lakh crores of cash. Due to lower rates, cost of capital of companies goes down, which positively impacts the availability of capital for profitable expansion.
  • b) Increase in GDP due to the multiplier effect of the cash added in the formal economy due to demonetization.

Both these factors are fuel for companies (including those listed on the stock exchange) to grow profitably.  This, in turn, will provide higher returns to their investors.  As a result, expect returns from equity to grow at healthy rates over the next several years.

How does this impact wealth generation through Mutual Funds?

demonetization generate wealth

For people already investing in mutual funds, this is a good time to plan to move a larger percentage of their investment portfolio to mutual funds and stocks.

For people who have not invested in mutual funds, the best way to start is to think about their short term vs. long term investment needs. They can begin small. SIPs are a good way for systematic investment.

Short Term (within 1 year) - If you need your investments available to you within 1 year (saving for a vacation, a bike or car you plan to buy within the next year, a fancy gadget), money market mutual funds schemes are the best. You get 7-8% return (higher than FD) without any lock-in period. You can withdraw anytime you need the money. Starting with money market may be the best way to start investing in mutual funds due to very low risk involved especially for newbies.

Money market/Liquid funds are also a great avenue to diversify their portfolio for seasoned investors.

Medium Term (between 1-3 years) - If you are looking to invest for 1-3 years (saving for the down payment of the house, Europe vacation for your anniversary, jewelry etc.) you can invest in debt mutual funds. They are expected to give good returns in the short to medium term.

Longer Term (more than 3-5 years)  - For more than 3-5 years investment horizon (kids college, retirement, etc.), you can look to invest in a variety of equity or balanced schemes.

Final Word

Mutual fund industry is all set to see increased growth with demonetization. Digitization has further made it easier to invest in mutual funds. Your bank accounts, online platforms and even Apps like Money View facilitate it.

This will change the way most of us generate wealth in the coming years and mutual funds will be a big part of that change.

Recap of #MoneyViewChat - Find ATM with Cash feature

It has been a month since demonetization and the quest for cash at an ATM continues. With salary day descending last week, many banks and ATMs had "No cash" boards almost immediately. It was quite chaotic. We decided to rope in our community to understand how they finding ATM with cash.


While some stayed away from visiting ATMs/Banks and waiting it out longer, some others had to queue up to withdraw cash. The waiting time in queues was different for different people. Some felt the process was smooth even though there was waiting while others felt it was chaotic and the bank employees were not helping out either. Some lucky ones had no trouble in withdrawing money.

Overall, the situation is still very fluid changing from place to place.


The problems at the banks/ATMs were of long queues. Almost everyone encountered them. There was also the case of cash running out or no cash in their closest branch. Then there was the trouble of cash withdrawal restrictions. Some others complained of no proper management of queue and bank officials not helping out either. Yes, it was troublesome at the banks/ATMs.



We got some fun answers for this question. Some people spent time chatting up with strangers in the queue while others listened to music to while away time in the queues. People stocked up on snacks and water to help themselves. And there were those who were very smart. They used Find ATM with cash feature on Money View App to find out an ATM with cash before heading out.



Many people underwent a lot of trouble to locate an ATM with cash. A few lucky ones managed to find one easily. It perhaps was the location that made the difference.


only if it was available on iOS :( But i have heard good stuff about it! #MoneyViewChat #FindCashWithMV

— Minna pauly (@Minnz89) December 1, 2016

Not too many had tried out Money View’s new feature to Find ATM with Cash.

One thing is for sure that these queues are going to stay for some time to come. Your best bet would be to use Money View’s intuitive Find ATM with cash feature and save yourselves the hassle of standing in long queues.

With this we round up yet another edition of #MoneyViewChat. Do join us every Thursday at 7 pm for an exciting session on Finance at @MyMoneyView.

digital wallets

Digital Wallets – Are They Here to Stay? #MoneyViewChat

Digital wallets

Considering that demonetization has put renewed emphasis on the use of digital wallets, we felt that this was a topic of relevance to our community. Sure enough, the responses showed that our community actively uses digital wallets and had many inputs to offer for all of us.

Without further ado, let us see a recap of the #MoneyViewChat:


Paytm is the hands down winner when it comes to which digital wallets our community use. It has a first mover advantage. It is also popular due to its cashbacks. Other digital wallets used are Ola Money popular with those who take Ola cabs, Airtel Money, Freecharge and Mobikwik.



It was clear that digital wallets were preferred for their convenience. Their integration with apps like Swiggy and Uber have made them preferable to cards when using these Apps. For expensive transactions though, credit cards still score. Another point that came out was the reluctance to store large amounts of money in the wallet.




Convenience is the single biggest reason behind the use of digital wallet. It is also useful in transfering money especially among friends. And in these times of scarcity of notes, wallets are useful when doing small transactions at merchants who do not accept credit cards.




Digital wallets seem to be secure. No one from our community seems to have had a bad experience with them so far. Apparently they are considered as safe as another cashless medium like credit cards.





Our community foresees a bright future for digital wallets, given the push that demonetization has given to cashless economy. Digital wallets still have a low penetration across the country. Hence the scope for their growth is enormous. They are also expected to add more features in the future.

With this we wrapped up another very interesting chat session on #MoneyViewChat. Do join us every Thursday between 7 and 8 pm to share some views, news and thoughts.