LONDON: Former Chief Economic Adviser Krishnamurthy Subramanian on Saturday said the Reserve Bank of India (RBI)’s withdrawal of the circulation of Rs 2,000 note “will not affect the common man of the society”.
According to the former CEA, the Rs 2,000 notes are not in use in everyday life of the common people and its cash in circulation is only 10 per cent. “Secondly, most of the common people do digital transactions”, Subramanian noted.
The former CEA, who spoke from London, said, “When a common man comes out to buy something, for example ordering tea from a chai vendor, the tea vendor doesn’t have to go through the pains of searching for change in his pocket or kitty and the customer can do the transaction with Paytm and PhonePe right away”.
Similarly, when the person who delivers milk to the tea vendor in the morning, comes to collect that money in the evening, “both parties don’t have to go through this trouble now because of digital transactions”, he said.
And this, he said, has made it easier for the common people. “Because of this, many difficulties will be reduced”, he added. “Digital money is being used in every part of the country and going forward, it will grow”.
According to a report from BCG, as much as $3 trillion of transactions take place digitally, the former CEA said. “The report added that 65 per cent of all transactions, or two of every three transactions, in terms of value, are expected to be digital by 2026”, he added.
“The digital transactions done by the common man will only grow, going forward. So, I think the Rs 2,000 notes will not affect the common people of the society”, he said. (ANI)