NEW DELHI: On the third anniversary of
, broken-down economic affairs secretary S C Garg said the Rs 2,000 picture, which the
authorities introduced changing older 500 and 1,000 notes, were being hoarded and want to be demonetised.
Three years ago, on this day, High Minister Narendra Modi made the shock announcement of banning the utilization of used 500 and 1,000 rupee notes with a glimpse to curb sad money, promote digital funds and operate the country a much less-money economy.
“Cash is quiet reasonably excessive within the system. There is additionally stocking of Rs 2,000 notes in evidence. The growth of digital funds is taking articulate all around the put the realm. It is taking place in India as effectively. The tempo is a lot slower,” Garg, who took VRS from authorities carrier after he change into shifted out of the finance ministry, said in a picture.
Garg, who headed the division that (among diversified issues) in a foreign country forex circulation except, said the Rs 2,000-notes account for about one-third of forex notes in circulation in value phrases.
“A factual chunk of Rs 2,000 notes are the truth is no longer in circulation, having been hoarded. Rs 2,000 picture, therefore, is no longer at demonstrate working as a forex of transaction,” he said advocating that they are able to be demonetised or withdrawn from circulation.
“It might maybe per chance well also additionally be demonetised, without causing any disruption. A straight forward ability, depositing these notes within the bank accounts (no counter replacement), can also additionally be extinct to construct watch over the direction of,” he said.
The November 8, 2016, demonetisation decision change into geared in the direction of lowering the excessive denomination forex in circulation, but as regards to all of the demonetised forex came support into the system at some level of the window supplied by the authorities for that.
Garg said money is past its hi there-days, although for a in point of fact diversified reason it is making a return.
“Very helpful digital modes of constructing funds are changing money at a fast tempo,” he said. “India has quiet a perfect distance to head with bigger than 85 per cent cost transactions within the country quiet taking articulate in money. The tempo must be accelerated.”
Making sizable money-essentially based totally mostly transactions dearer and enviornment to some tax/fee, making digital modes of funds very easily on hand always and stopping money handling within the authorities totally will attend transition our country to much less money and to no money economy, he said.
Moreover, The Reserve Monetary institution of India (RBI) needs to transfer beyond the banks and involve all diversified cost infrastructure members in this commerce of constructing funds digital, he said.
The broken-down bureaucrat said money has severe obstacles although for tiny value transactions, it is quiet reasonably aggressive and helpful.
The “trick is to operate the non-money mode of transaction as, if no longer more, helpful and as, if no longer much less, costly as money mode,” he said. “China has completed it. Greater than 87 per cent transactions now procure articulate within the non-money mode as when put next to 12 per cent in India.”
He advocated taking more measures to operate money slightly dearer and more inconvenient, and fin-tech essentially based totally mostly transactions ambiance pleasant, value much less and helpful.
Implicit subsidies for money transaction (no fee whereas depositing money in banks, no longer offering notes of no longer as a lot as 10 rupees for transactions) can also quiet be progressively eliminated and fin-tech infrastructure – utilizing the LED model, made universal and value-free, he added.