Mumbai: A year into demonetisation and a cross-section of Mumbaikars feel that the move has encouraged people to shift to electronic mode of payment even as some said one year was too short a time to assess its long-term impact. For chartered accountants (CAs), it is a “clean” move where post demonetisation, money transactions have reduced as people are relying more on digital transactions. With online transactions being recorded and maintained in books of accounts, the government is aware what a person is dealing in. Other professionals in the city too have noticed a shift from paper money to digital and plastic money.
Speaking about the November 8, 2016, decision of the BJP government to phase out old Rs 500 and Rs 1,000 currency notes, senior counsel Sujay Kantawala said, “It did come as a ‘rude shock’ to 125 crore Indians living here and all over the world and mass confusion reigned. Cash just vanished and local businesses were affected. However, as terror funds and fake currency were the main targets, we need to wait and watch whether a quantum of sales proceeds of criminal activity is actually seized and used for India’s progress.”
Another senior advocate, K.H. Halai said, “A year is too less for judging the effects of demonetisation. It took about six months for people to digest it. Initially, it was perceived as a failure as the entire cash came back to banks. It has surely changed transacting habits of a wider segment of the population which was initially inconvenienced. Outlook has changed for the positive,” he said.
CA Vijay Chechania said, “We can say that the mark is more towards the positive side. Even though initially people suffered, now it has been balanced. In future, it will move towards success importantly because the government was not ready for the move. Another important impact has been that it has brought down real estate prices in the city.”
Another CA Nitesh Jhajoo said that immediately after demonetisation, people started depositing their money in banks which created liquidity. Now, banks had enough money and hence, they had decreased bank interest rates.”
