Unlikely to impact business economy, say stakeholders

MADURAI: The withdrawal of Rs 2,000 currency notes from circulation as announced by the Reserve Bank of India (RBI) would have no impact on business economy, several business stakeholders felt.

SP Jayaprakasam, advisor, Tamil Nadu Foodgrains Merchants Association Limited, Madurai on Saturday said the currency withdrawal was seen as a positive step forward for business and it would not affect trade and industry. Nowadays more and more transactions are handled online and over 40 per cent of the transactions are digital, he told DT Next.

According to S Rethinavelu, president, Agro Food Chamber of Commerce and Industry, Madurai, Rs 2,000 currency note was not in circulation and hardly available over the past several months. Moreover, there’s speculations that it could be demonetised. Many became aware and had already exchanged the currency notes, he said.

Importantly, this currency regulation would make an end to corruption and bring back black money stashed away in various financial institutions, Meda. A Balan, general secretary, Dindigul Chamber of Commerce, said adding that Rs 500 would be possibly the highest denomination currency to deal with.

However, N Jegatheesan, president, Tamil Nadu Chamber of Commerce and Industry, Madurai, has sought to establish clear guidelines for the currency note withdrawal from the RBI to raise more awareness about this regulation.

K Nehruprakash, president, Thoothukudi District Tiny and Small Scale Industries Association, said with this currency withdrawal, trade and industry would rebound as it would be advantageous to the government since online payments as evidence that could be accounted for would perform rather better than cash settled transactions. Once the online payments are accounted promptly, bankers would not hesitate to provide loans and the GST revenue would certainly go up, he said.