Hrithik Kiran Bagade
BENGALURU: The swift move by Prime Minister Narendra Modi to demonetise Rs 500 and Rs 1,000 currency denominations from the economy, while expected to briefly shake the smooth functioning of businesses in the country, has largely been lauded by traders, food and beverage sector and travel industry, as an attempt towards a strong digital, cashless economy.
Talking to DH, Confederation of All India Traders (CAI T) National General Secretary Praveen Khandelwal said, “The move is a clear message for the adoption of digital payments, and technology in trade and commerce. The PM wants to do away with cash transactions.”
Khandelwal suggested that the government constitute a special working group of stake-holders, technology-providers, banks and financial institutions to ensure maximum usage of card payments in India.
“Transaction costs charged by banks on card payments, should be subsidised by the government, which must also incentivise usage of card payments in terms of giving relief in payment of government revenue”
Restaurants ready
The restaurant sector sees numerous transactions on a daily basis. Explaining the impact of the move on eating places, National Restaurant Association of India President Riyaaz Amlani said, “In the very short-term, there is going to be a problem because of liquidity-related issues. Some players may not be fully equipped to handle such levels of credit card transactions. As a long-term move, this is welcome, because the less cash there is in the system, the less risk there is, and more accountable. Overall, we are happy with this move towards a cashless economy.
Amlani added that one of the few outcomes that could be expected by the move, yet, would be a drop in footfalls at restaurants due to cash crunch over the next couple of days, until ATMs are open again.
Reflecting the travel industry sentiment, Cox & Kings CFO Anil Khandelwal said, “The move by the-government will significantly benefit the organised sector. We have never encouraged cash transactions, and have always complied with government rules aimed at reducing cash transactions.”
