Mumbai: A city-based economist and retired professor of the University of Mumbai, Dr Avdhoot Nadkarni, has said that a year after the November 2016 demonetisation announcement by the centre, there have been unintended consequences, like increased savings, which in the near future will enable banks to give out money at lower interest rates. Secondly, scrutiny of bank accounts where large amounts of old currency were deposited has revealed black income. It has also changed the common man’s spending methods, with a preference for electronic modes of payment instead of cash payment.
Speaking to The Asian Age, about the benefits to the common man, he said, “Due to shortage of notes and the prospect of running from one ATM to another, the common man readily accepted the electronic money option and hence there has been a change in the shopping methods, resulting in a decrease in cash transactions.”
“As people started using less cash, the money started accumulating in their bank accounts, both savings and current, increasing their deposits, which will enable them to offer more money at lower interest rates,” said Prof (Dr) Nadkarni.
