Industry Bodies Applaud India’s Demonetization Effort

IT associations have applauded the government of India’s effort on Demonetisation of Rs. 500 and Rs. 1,000 notes.

Viren Bavishi, Director, TAIT, “Demonetisation of the Rs. 500 and Rs. 1,000 currency notes is one of the boldest steps to curtail the parallel economy fuelled by ‘black money’ while at the same time cutting off financing of terrorist activities.”

“For SMEs, I don’t see any major ill effects – in fact, this move would mark the onset of increased adoption of transactions through IMPS/NEFT/RTGS and mobile wallets that will bring in more convenience and transparency.”

“With GST likely to be rolled out from 1st April 2017, this demonetisation of old currency notes will complement the government’s move to ensure higher ‘tax compliance’. Strict tax compliance will help SMEs running legitimate businesses, who generally find it difficult to compete with smugglers and those dealing in contraband goods.”

“While there may be hardship for a week or two, thereafter things are expected to settle down, and people in general, including businesses, would be able to get cash when needed through authorised banking channels.”

“In the long run, this move will accelerate economic growth through the digital pipes of e-commerce and m-banking. It will make larger revenues available to government in the form of income tax collections to fund infrastructure growth and development.”

Commenting on this move, Anwar Shirpurwala, Executive Director, MAIT, said, “MAIT compliments Prime Minister Modi for his action against corruption and black money and strongly supports the Government in its mission of transformation of India. We applaud the decision taken by the government to eradicate black money. The move taken by the govt. clearly indicates that we will be depending more and more on the ICT. This move has been possible because of the availability of technology and multiple means of financial transaction. This also calls for the Govt to further look for means of increasing IT penetration, thus enabling every citizen to use technology tools and services for cashless transactions. Govt. should continue to give more emphasis on technology led schemes and programs for the betterment of the economy growth.”

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