No have to have to fret: Minister on experiences of Centre withdrawing Rs 2,000 notes – Times of India

NEW DELHI: Dismissing reports that the govt is set to withdraw Rs 2,000 denomination notes, minister of state for finance Anurag Thakur on Tuesday explained there was no want to be concerned about it.

“This is the actual fret (about demonetisation) which has surfaced now. I feel that you need to not get worried about it,” Thakur instructed Rajya Sabha replying to a question on government’s strategy to withdraw Rs two,000 notes in the upcoming.

SP member Vishambhar Prasad Nishad claimed, “Blackmoney has enhanced by introduction of Rs 2,000 denomination take note. There is misconception among persons that you are heading to introduce Rs one thousand denomination be aware again to switch Rs 2000 denomination be aware.”

The federal government had in November 2016 demonetised Rs 1,000 and Rs 500 denominations notes.

Thakur instructed the House that objectives of demonetisation had been flushing out black money, reducing faux Indian forex, to strike at the root of funding of terrorism and Still left-wing extremism, to convert non-formal overall economy to a formal financial state to develop tax base and employment and to give a significant increase to digitalisation of payments to make India a considerably less dollars economy.

According to the reply, notes in circulation (NIC) as on November four, 2016 ended up Rs seventeen,74,187 crore which have now amplified to Rs 22,35,648 crore as on December 2, 2019.

The NIC experienced grown at an ordinary development rate of fourteen.fifty one for each cent year on year clever since Oct 2014 till October 2016.

At this fee, NIC would have increased to Rs twenty five,forty,253 crore as on December two, 2019.

As actual NIC on November twenty five, 2019 is only Rs 22,35,648 crore, demonetisation followed by digitalisation and reduction of cash use in informal financial system has succeeded in lowering NIC by as a lot as Rs three,04,605 crore, it added.

As claimed by the RBI, 7,62,072 pieces of counterfeit lender notes had been detected in the banking method for the duration of 2016-17, five,22,783 parts in 2017-18 and 317,389 pieces in 2018-19. Hence, demonetisation resulted in curbing of counterfeit forex, the minister claimed in the reply tabled in the Property.

Electronic payment transactions have been steadily expanding since final few decades. The complete transaction volume increased from two,071 crore in 2017-eighteen to 3,134 crore for 2018-19, which corresponds to a progress level of fifty one for each cent.

The total financial development of a region is dependent on numerous aspects such as structural, external, fiscal and financial and so it is tricky to pinpoint the effects of any a person unique variable on the progress fee of GDP, stated the minister about impact of demonetisation on financial growth.

Moody’s has not downgraded score of India soon after 2016, he added in the tabled reply.