In November the Government of India declared that the existing 500 and 1,000 Rupee (Rs.) banknotes were to be worthless at the end of December 2016.
In December 2016, MoneyOnMobile, Inc. announced that its Indian subsidiary had been provided a new credit facility from YES BANK Limited in the amount of $1.5 million USD. This has allowed the company to capitalize on increased demand in India for digital payments. The line of credit will support between $320m and $650m USD in additional domestic remittance processing volume annually.
In early November 2016, India announced that existing Rs.500 and Rs.1,000 banknotes would become valueless and eventually be replaced by new Rs.500 and Rs.2,000 banknotes, but those notes were not available in volume on the date of demonetization. In an economy that has relied on cash for more than 90 percent of financial transactions, without access to currency, consumers and businesses are turning to digital payments.
“We believe that the line of credit has been instrumental for us to meet the surge in consumer demand for digital financial transactions created by demonetization,” said Harold Montgomery, CEO and Chairman of MoneyOnMobile. “We believe access to this credit means the number of transactions we can support in India can be increased, thereby increasing our processing volume.”
Ranjeet Oak, President and COO of MoneyOnMobile said, “Each time we process a transaction we earn a fee, which drives our revenue. The increase in demand for digital payments in India has been good for our business, because the more transactions per day the greater our revenue.”
VP of Corporate Communications