He said this will encourage companies withdrawing lakhs of rupees to pay salaries to workers, to issue a salary cheque to be credited into the employees account. In fact, it is one way of monetising everything, he said.On the limit of Rs 10,000, he said it was the finance ministers prerogative.
It is more beneficial to the low cost depositors. People are keeping lot of money in saving and current accounts, so that they can transact at anytime.
On the issue of merger of loss-making banks with State Bank or others, he said consolidation is the need of the hour as number of banks are not able to invest on technology upgradation, business process and new products.