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Reacting to the talk that the government may use a part of the funds to put in Jan Dhan accounts, the mood in government is uncertain about such options. The tentativeness is due to Prime Minister Narendra Modi’s known aversion to giveaways. He is of the view that giveaways achieve little for the economy and carries the risk of breeding dependence.
The sources said Rs 2,000 notes could not be put in the tray meant for Rs 1,000 notes as the recalibration required both hardware and software changes.
They said that the swelling of deposits with banks would translate into better lending capacity for banks.
“The SME sector will benefit as the banks will lend more,” the sources said adding that earlier the SMEs were borrowing from the informal agents paying 18-20% interest rate and now the banks would be able to lend at significantly lower rates. They said that the move to scrap the high value notes will lead to a cleaner and transparent economy.
(Sourced from agencies, feature image courtesy:news.anotao.com)
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