Quote on Demonetisation of Rs. 500 and Rs. 1,000 notes by Govt. of India: Viren Bavishi, Director, TAIT
India 11 November 2016: “Demonetisation of the Rs. 500 and Rs. 1,000 currency notes is one of the boldest steps to curtail the parallel economy fuelled by ‘black money’ while at the same time cutting off financing of terrorist activities.”
“For SMEs, I don’t see any major ill effects – in fact, this move would mark the onset of increased adoption of transactions through IMPS/NEFT/RTGS and mobile wallets that will bring in more convenience and transparency.”
“With GST likely to be rolled out from 1st April 2017, this demonetisation of old currency notes will complement the government’s move to ensure higher ‘tax compliance’. Strict tax compliance will help SMEs running legitimate businesses, who generally find it difficult to compete with smugglers and those dealing in contraband goods.”
“While there may be hardship for a week or two, thereafter things are expected to settle down, and people in general, including businesses, would be able to get cash when needed through authorised banking channels.”
“In the long run, this move will accelerate economic growth through the digital pipes of e-commerce and m-banking. It will make larger revenues available to government in the form of income tax collections to fund infrastructure growth and development.”
About TAIT
Trade Association of Information Technology (TAIT) was formed in March 1996 to represent the interest of IT community in the ecosystem of Distributors/Sub-distributors/Resellers, System Integrators and Service Providers. TAIT has over 300 members representing the complete spectrum of IT organizations. The association was formed to uphold the larger interest of the IT trade, which represents 70% of Mumbai’s IT industry. It’s a forum where the challenges of Mumbai’s domestic IT Industry business is heard and understood. TAIT is a pro-active, leading IT association of India.