Union Finance Minister Arun Jaitley on Saturday said that a large amount of cash flowing in the economy has its own curse, adding that ‘crime, corruption, and terrorism flourish on cash.’
“There are both economic and social costs involved in excessive use of cash. Cash has anonymity and ownership is not identified easily. Crime, corruption, and terrorism flourish on cash. While users are under risk, state suffers in terms of tax noncompliance,” said Jaitley,
Addressing at the launch of Vijaya Bank’s 100 digital villages/ branches/ ATMs, Bengaluru, Aug26, 2017 pic.twitter.com/5NHfkNIoIV
— Arun Jaitley (@arunjaitley) August 26, 2017
He was speaking at the inauguration of Vijaya Bank’s ‘100 digital villages, 100 branches, 100ATMs’ initiative
Citing the impacts of the demonetisation, he noted that the move has led to the eradication of anonymity of ownership of cash, adding that it is bringing the economy more towards digitization.
“When the Pradhan Mantri Jan Dhan Yojana was flagged off, 42 percent of Indians did not have a bank account. Three years after this, 300 million more people have been added to the financial sector. The next step is to identify the beneficiaries of such welfare schemes. The spread of financial inclusion and digitisation to the rural sector should be natural,” Jaitley said.
The Finance Minister said that the Goods and Services Tax ( GST), has the potential to expand the indirect tax base, as the temptation and possibility of cash dealings get eliminated due to lack of benefit from input credit.