Prime Minister Narendra Modi’s drive to take the economy into a ‘less cash’ mode through a multipronged strategy would not only check the menace of black money and corruption, but would also convert a large part of the informal economy into the organised sector, according to Assocham president Sunil Kanoria.
“A slew of incentives announced by finance minister Arun Jaitley on digital payments at the essential services and public utilities, coupled with a simultaneous policy level push being devised by a high-level committee of chief ministers and top policymakers and bankers, would take India straight into the next level of digital economy. Such a leapfrog would be unprecedented anywhere in the world and place the Indian economy on a par with some of the developed nations in terms of smooth commercial transactions,” Kanoria said in a statement.
He said once a large part of the transactions are captured into the banking system and dependence on hard cash is reduced, the problem of black money and corruption would be tackled by the systemic changes.
“The digital transactions through banking, para-banking and non-banking channels leave a trail that would be the biggest hurdle for those unscrupulous sections in public life and bureaucracy which resort to rent-seeking that ultimately falls on common citizens, particularly the poor,” Kanoria said.
He added that Assocham would work with the government, banks, RBI and the state governments in promoting the digital economy through a series of measures. “We would reach out to our members, particularly in the MSME segments, to shift towards digital formats of businesses,” Kanoria said.