Stating that recovery with respect to demonetisation may be much higher than projections, Raamdeo Agrawal, MD & Co-Founder, Motilal Oswal AMC on Wednesday told CNBC TV18 that demonetisation will bring about a habitual change in people. “I expect normalcy to be restored by January end. Auto sales also have recovered significantly in the urban region,” he said. Yesterday, Leo Puri also told the business channel that it is very unlikely to see demonetisation pain lasting beyond March 2017. Tax base is likely to expand due to demonetisation, he added.
The Modi government is pitching hard for a cashless economy. Recently, the government decided that no service charge will now be levied for use of debit cards. Department of Economic Affairs Secretary Shaktikanta Das has said that till December 31, 2016, no service charges will be levied on debit cards and that the move is meant to ensure greater penetration of digital transaction. Meanwhile, to encourage digital transactions, the RBI has increased the doubled the limit on the balance that one can keep in e-wallets. The limit has been enhanced from Rs 10,000 to Rs 20,000.
The Narendra Modi government has come under severe criticism from the Opposition for its move to demonetise old Rs 500 and Rs 1000 notes. The reaction on the ground has, however, been mixed. While most people have lauded the move to check black money and corruption, many have said that the implementation, especially when it comes to availability of currency, should have been much better.
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The government has also warned that those who are using other people’s bank accounts to convert their black money will be severely punished. Not only that, those who allow their accounts to be misused for this purpose will also face prosecution.
Meanwhile, Raamdeo Agrawal further added that housing has always been the focus area of this government.