Hailing government’s decision to take out Rs 500 and Rs 1,000 notes from circulation as a move towards creating a new normal in India, the Finance Minister Arun Jaitley has said that the demonetisation process is almost complete and it has been the smoothest possible replacement of currency anywhere in the world.
He said that a predominantly cash economy has now to be substituted with a digital economy, which will bring more money into the banking system and lead to better revenue generation; the integration of the informal economy with the more formal one is now taking place. He also said that the post-demonetisation regime is actually going to generate a far bigger GDP in the long run and added that any arguments in favour of the ‘virtues of a cash economy’ were ‘absolutely trivial’.
Recently, Finance Minister had said that the remonetisation situation with regard to replenishing the scrapped currency is ‘almost normal’ now and the Reserve Bank of India is monitoring the supply on a daily basis. He also said that the government is now pushing and incentivising digital payments.
Talking on the subject of 'Transforming India: Vision for the Next Decade', Jaitley said India was standing at a point of history where the country as a whole is becoming more and more aspirational. He further said that the global economy continues to face its own challenges. Any slow growth in the world impacts us also, but 7-8 percent growth rate is the new Indian norm and if we get the support of the global economy, that figure has a scope of shooting up.