India Inc. welcomes move to demonetize Rs 500 and Rs 1,000 notes

India Inc. welcomes move to demonetize Rs 500 and Rs 1,000 notes

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India Inc. on Tuesday welcomed the Government’s decision to demonetise the Rs 500 and Rs 1,000 notes from Tuesday midnight.

India Inc. welcomes move to demonetise Rs 500 and Rs 1,000 notes
Demonetising high denomination notes can be an effective means of checking accumulation of wealth in cash

This is a master stroke by the BJP government and a very bold move indeed. Even though this is not the first time such a move has been made by a sitting government, what is significant this time is that it is built on the JAM trinity – Jandhan, Aadhar and Mobile – making it hard for the country to regress.

“The banning of higher currency notes is a major move which will help curb unaccounted-for cash in the real estate sector. We have just witnessed a tremendous step towards increased transparency in the Indian real estate industry. The effects will be far-reaching and immediate, and shake up the sector in no uncertain way. Stricter measures against black money have for long been required to help bring about greater transparency, give the Indian real estate sector more credibility and make it more attractive for foreign investors. Black money deals are more common on the unorganized market, but this practice has, in fact, been on the decrease with greater awareness on the part of buyers. Before too long, the caricatured version of black money driving Indian real estate is no longer applicable,” said Chairman & Country Head, JLL India, Anuj Puri.

Resonating the same, Co-founder and CEO, Shopclues, Sanjay Sethi says, “This is a master stroke by the BJP government and a very bold move indeed. Even though this is not the first time such a move has been made by a sitting government, what is significant this time is that it is built on the JAM trinity – Jandhan, Aadhar and Mobile – making it hard for the country to regress.”

“We welcome this move, this will eradicate black money from the Market. It will reduce avenues to escape tax abundance and will bring lots of benefits to economy by reflecting the actual GDP of the country. It may bring temporary disturbance in economy​.The consumption will also go slow but in long term it will bring in greater clarity and more money,” CMD V-Mart Retail , Lalit Agarwal said.

CFO, Panasonic India, said, “Ruling out the higher currency notes is a giant leap towards realizing a better, digitally connected India. Households might feel the brunt due to the likely disruption in the liquidity situation but we hope to see an increase in online transactions as our customers can now upgrade to a niftier, cashless, e-commerce option. This step is integral towards creating transparency, weeding out corruption / unaccounted-for cash, enabling a seamless business ecosystem.”

Co-Founder of the High Street Clothing label, Love Genration, Bhavana Pandey said “With sweeping changes both in wardrobes and economy, we look at the policy alteration optimistically and believe it is among the most remarkable and economically beneficial implementations by the government.This ​move will definitely put an end to the circulation of black money within the nation. Since most Indian customers use cash as a means of transaction we ​do see a lull in the immediate weeks to come however, looking at the bigger picture we reckon it is a positive step towards boosting digital progress and providing an impetus to the development of the domestic economy all while battling corrupt practices.”

“It is a great day and historic move that will be remembered forever. The decision of making 500, 1000 note currency illegal by NaMo Government is definitely going to effect the various markets across India and especially garment retail industry as it is the peak wedding season for our market and very less percent of our population shops with debit and credit cards. Since the flow of hard cash will be slow for a while now it is going to get tougher. But we appreciate the step taken as the hardships are temporary but the final results will lead to a better and brighter future for Indian youth. It will be the era for educated and hard working people to shine on,” fashion designer, Isha Gupta Tayal – who owns the label IGT – said.

Co-founder and CEO Roposo, Mayank Bhangadia added, “This step taken by Sir Narendra Modi is path-breaking and revolutionary, as it sets a great example on how to bring change boldly and effectively. We as a nation have to fight corruption and what a way to begin! This bold move is just another instance of the Modi government’s vision of corruption free India.”

Founder, ShopClues, Sandeep Aggarwal stated,”The Modi Government continues to adopt innovative and feasible way to eradicate black money and move India to 21st century nation. The demonetization of currency notes is a bold step in a positive way and a great move in the direction of weeding out black money. Not only will this move bring transparency in the system but will also control the menace of fake currency notes which has been increasing in numbers.After supporting startup, giving impetus to digital economy, this is another step for India to be at par with other great nations of the world”

“We expect an immediate impact of drop in consumption because of ban on Rs 500 and Rs 1000 note. Statistically 60 per cent plus of our sales happens in cash and out of it 80 per cent plus in Rs 500 & Rs 1000 denomination note. So there’s direct impact of our approx. 50 per cent receivable currency. The situation will remain grave for next couple of months till the time enough money is circulated in the system. Till that time customers will conserve every single penny and will result in sales loss.However once things are streamlined we are reasonably sure that positive momentum will be built up and pent up demand will take care of interim losses.” CEO & MD , Pvt. Ltd., said.

“Demonetising high denomination notes can be an effective means of checking accumulation of wealth in cash,” President of industry body Confederation of Indian Industry (), also agrees with other counterparts.

“The Government has taken a measure aimed at the heart of the black cash economy. CII congratulates the Prime Minister and the Government for this step. Not only is the measure important but it requires extensive preparation for effective execution.”

Another leading business body Federation of Indian Chambers of Commerce and Industry () said that it supports the Government’s decision to suspend the legal tender status of notes of Rs 500 and Rs 1,000 and to introduce new currency notes.

“This is an extremely bold move by the Prime Minister and will have a debilitating impact on the parallel economy in the country as well as deal a body blow to terror financing,” President of FICCI, was quoted as saying in a statement.

“FICCI completely supports this move of the Government and complements it for its continuous and comprehensive measures to deal with the issue of black money in the country.”

“There could be some inconvenience that this change may lead to for the people of our country for a few days. However, we are sure that Government and RBI will take adequate measures to ensure the transition happens smoothly,” he added.

Managing Director and Chief Executive of ICICI Bank, said: “I welcome the announcement made by the PM to derecognise Rs 1,000 and Rs 500 notes.”

“It is perhaps the most significant move ever taken to curtail the parallel economy. This move will give a sharp boost to all formal channels of payment which in turn will help the formal economy to grow.”

State Bank of India () Chairman elaborated that: “We have just now been advised of the Government move to demonetise current series of Rs 1,000 and Rs 500.”

“We have handled demonetisation earlier and will do so again. Tomorrow banks will remain closed in order to withdraw these notes from counters and ATMs.”

“We will strive to restock ATMs at the earliest and make them operational. Government has given enough exemptions to ensure urgent needs are met.”

(With inputs from IANS)