Former Chief Economic Advisor Krishnamurthy Subramanian on Saturday said the Reserve Bank of India (RBI)’s withdrawal of the circulation of Rs 2,000 note “will not affect the common man of the society”.
According to the former CEA, the 2000 notes are not in use in the everyday life of the common people and its cash in circulation is only 10 per cent. “Secondly, most of the common people do digital transactions,” Mr Subramanian said.
Speaking exclusively with ANI from London virtually, the former CEA said, “When a common man comes out to buy something, for example for ordering tea from a chai vendor. While doing this, the tea vendor doesn’t have to go through the pains of searching the change in his pocket or kitty and the customer can do the transaction with Paytm and PhonePay right away.”
Similarly, when the person who delivers milk to the tea vendor in the morning, comes to collect that money in the evening, “both the parties don’t have to go through this trouble now,” he said, adding that they don’t have to go through this because of digital transactions.
And this, he said, has made it easier for the common people.
“Because of this, many difficulties will be reduced,” he added. “Digital money is being used in every part of the country and going forward, it will grow.”
According to a report from BCG, as much as USD3 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.
“The digital transactions done by the common man will only grow, going forward. So, I think the 2000 notes will not affect the common people of the society,” he said.
(Except for the headline, this story has not been edited by String Reveals staff and is published from a syndicated feed.)