Demonetisation Will Transform Indian Economy, Says RBI Governor Urjit Patel
Demonetisation Will Transform Indian Economy, Says RBI Governor Urjit Patel 

Dr Urjit Patel (PUNIT PARANJPE/AFP/GettyImages

On the eve of the deadline for citizens to deposit demonetised currency in banks, Reserve Bank of India (RBI) Governor Urjit Patel said that demonetisation will have a transformative effect on the economy going forward, despite some short-term disruptions and "public hardship".

"The withdrawal of specified bank notes will impart far-reaching changes going forward. It is expected to significantly transform the domestic economy," Patel said on Thursday in his foreword to the half-yearly Financial Stability Report.

He said the increasing adoption of digital modes of payments will lead to greater intermediation, efficiency gains, accountability and transparency. Patel acknowledged that demonetisation of high-value currency has caused short-term disruption and hardship.

On the domestic macroeconomic front, condition remains "stable" with a cool-down in inflation, the RBI Governor said, adding that the growth momentum has "slackened" recently.

With inputs from IANS

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber