Former Chief Economic Advisor: Withdrawal of Rs 2,000 Notes Will Not Affect Common People, Digital Transactions to Ease Daily Life


In a recent virtual interview with ANI from London, former Chief Economic Advisor Krishnamurthy Subramanian dismissed concerns over the Reserve Bank of India’s decision to withdraw the circulation of Rs 2,000 notes, stating that it would not have a substantial impact on the common man in society. Subramanian argued that these high denomination notes are not extensively used in day-to-day transactions, representing only 10 percent of cash circulation. He further emphasized that the majority of people in society rely on digital transactions, rendering the need for physical currency less significant.

Subramanian highlighted the convenience of digital transactions, which eliminates the hassle of searching for change, particularly for individuals like tea vendors or milk delivery personnel. Payment platforms such as Paytm and PhonePe enable instant transactions, making it easier for common people to carry out their daily activities without relying heavily on cash. The former economic advisor pointed out that the shift towards digital money has already alleviated many difficulties and will continue to do so. The usage of digital transactions is widespread across the country and is expected to further grow in the future.

To support his argument, Subramanian referred to a report by BCG, which revealed that approximately USD 3 trillion worth of transactions are conducted digitally. The report projected that by 2026, digital transactions would account for 65 percent of all transactions in terms of value. Subramanian expressed confidence in the increasing adoption of digital transactions by the common man, emphasizing that the withdrawal of Rs 2,000 notes would not significantly affect the general public.

Overall, Subramanian’s remarks underscore the growing prominence of digital transactions in India and how they have already simplified the lives of common people. While the withdrawal of high denomination notes may raise concerns, Subramanian’s analysis suggests that the reliance on digital platforms for payments and transactions will continue to mitigate any adverse impact.


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