"If the game is also to compress the amount of currency in circulation, and move things digitally, I think the government ends up holding a lot of cards in its hands."
In the absence of crystal ball to figure out what “demonetisation“ would lead to, a look at the stock market and the aviation industry may help.
People who are wailing the most are the ones whose businesses are predicated on tax evasion and that cannot be the viable proposition now, said Sobti.
Citi’s Asia-Pacific CEO Francisco Aristeguieta says demonetisation opens up new opportunities as digital transactions accelerate in the region.
The six-member MPC may choose to go for a higher, 50 bps cut if it decides to offset the loss of velocity in cash circulation with 86% of currency going out of system.
The “commitment of the RBI is to encourage greater use of electronic payments by all sections of society so as to achieve a ‘less cash’ society.”
This government has shown the courage to adopt the orphaned project like Aadhar of the previous government and made a success out of it.
While India remained insulated from the global financial crisis of 2008, the Reserve Bank of India is implementing some global standards that would protect the Indian banking system from future shocks.
More than the MPC’s decision to reduce interest rates, the commentary accompanying it seems to have raised issues about credibility, if continued.
Urjit Patel, in his first public engagement since taking over as governor from Raghuram Rajan last month, has laid out a new vision and path for the Reserve Bank of India.
- No blogs yet have been written by the author, we’re sure the author will contribute one soon