Krishnamurthy Subramanian lay emphasis on the increased use of digital modes of payment, and said it would make things easier.
By India Today News DeskThe withdrawal of Rs 2,000 currency notes announced by the Reserve Bank on Friday (May 19), left many surprised. However, former Chief Economic Advisor Krishnamurthy Subramanian believes the move won’t impact the common man.
In conversation with ANI, Subramanian said that a Rs 2,000 note is not commonly used by the public. “When a common person comes out to buy something, for example, to order tea from, the vendor doesn’t want to go through the pains of searching for the change in his pocket.”
He also lay emphasis on the increased use of digital modes of payment, and said, “When out of cash, the customer can do the transaction with Paytm and PhonePe right away.”
On May 19, the RBI announced that Rs 2,000 will be withdrawn from circulation, and will continue as legal tender. People can return or exchange notes of this denomination at any bank by September 30.
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Reiterating that digital transactions will make things easier, he said, “Digital money is being used in every part of the country and going forward, it will grow. Because of this, many difficulties will be reduced.”
According to a report from BCG, as much as $3 trillion of transactions take place digitally, the former CEA said.
“The report added that 65 per cent of all transactions, or two of every three transactions, in terms of value, are expected to be digital by 2026,” he added.
Individuals can make deposits into bank accounts without any restrictions, provided they adhere to the existing Know Your Customer (KYC) norms and other relevant statutory/regulatory requirements.
Also ReadConfused about exchanging Rs 2000 notes? Check the FAQs below
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