CAIT: Brave step, will boost economy

Vijay C Roy

Tribune News Service

Chandigarh, November 8

Praveen Khandelwal, secretary general, Confederation of All-India Traders, called it the most brave step taken by any Prime Minister in the history of India. “The step will strengthen the Indian economy and is likely to boost all sectors, irrespective of the fact whether it is traders, industry, services etc.”

In February this year, economist Ajit Ranade had made a case for scrapping Rs 500 and Rs 1,000 notes. Citing research by former Standard Chartered Plc chief executive Peter Sands, he had argued that large denomination notes were highly likely to be used for illegal activities and not so much as a medium of ordinary transaction and that elimination of such notes could go a long way in cutting the stocks of such funds (popularly known as black money).

According to the data by the Reserve Bank of India (RBI), the share of Rs 1,000 notes in the stock of currency in circulation at the end of financial year 2014-15 was a whopping 39 per cent with Rs 500 notes accounting for a further 45 per cent of the currency stock.

Insiders say the move was prepared a few days ago as many bank ATMS were dispensing Rs 100 notes only.