A day ahead of the first anniversary of demonetisation, finance minister Arun Jaitley underlined that excessive dependence on cash has its costs. Stressing that India is successfully moving towards digital economy, the finance minister said it will only grow further.
Inaugurating the new PNB complex in the national capital, Jaitley cautioned “It is not just cost but there is a curse of cash. It has impact on both society and economy”.
He said there is a clear change taking place as to how India and Indians are spending money and the change is only in one direction.
It will not happen abruptly but the movement towards a less-cash economy is very clear, he said, adding that it will lead to more deposits with banks, increasing their lending ability at affordable rates.
The Finance Minister also stressed that banking is economy’s lifeline. He exuded confidence that banks in India will continue to play an important role in supporting economic growth.
“Banking is the life line of the economy and it will gain further importance in the coming days,” he said. A healthy banking system will help support growth of the economy, he added.
Prime Minister Narendra Modi had November 8 last year announced the scrapping of old Rs 500 and Rs 1,000 notes as part of the government’s efforts to fight black money and corruption. The move came in for instant opposition criticism.
Following that, the Centre has been pushing for digital payments and transactions through the banking channel so as to promote a ‘less-cash’ economy.
Jaitley said some people have problem in accepting the fact that transactions through the digital mode and banking instruments are going to witness a rapid growth as compared to cash dealings.
(With inputs from Kriti Mishra)