Formalisation of economy needed a shake-up, says Arun Jaitley

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Updated: November 28, 2017 7:46:01 PM

Arun Jaitley on Tuesday said that the country had reconciled with the fact that formalisation of the economy would take an eternity, but government's push for a cashless society gave the much-needed shake-up.

Arun Jaitley on Tuesday said that the country had reconciled with the fact that formalisation of the economy would take an eternity, but government’s push for a cashless society gave the much-needed shake-up.

Arun Jaitley on Tuesday said that the country had reconciled with the fact that formalisation of the economy would take an eternity, but government’s push for a cashless society gave the much-needed shake-up. Speaking at an event by popular mobile-wallet Paytm, the Finance Minister said, ” We had almost reconciled with the fact that the economy would be substantially informal, it will take decades and centuries to formalise, and that no shakeup from the system was required.”

“We waited for the economy to formalise at its own pace, till the cows came home,” Arun Jaitley said adding that several initiatives by the Narendra Modi government led to a chain-reaction, which expedited formalisation of the economy. “The habit of dealing only in cash is gradually changing; therefore we require a shake-up,” he said.

“The cost of operation through online transactions are cheap. A majority of Indians today have access to the banking system. Cash being a predominant instrument in the transaction is considerably changed now,” Arun Jaitley said adding that conventional and traditional minds will find it difficult to accept initially.

He further added that cashless economy has expanded the whole horizon of entrepreneurship. “Half the country had no access to the banking system. Today nobody can complain that they do not have. This is the new chapter in history is taking place which is resulting in the great formalisation of the economy,” Arun Jaitley said.

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