Brilliant or Unwise? Economists’ Take on Rs 500 & 1,000 Scrapping

Here’s what the economists and corporate bosses have to say about the government’s unexpected move.

In a sudden move, Prime Minister Narendra Modi announced the government’s decision to scrap Rs 500 and Rs 1000 currency notes to check black money.

How will the decision impact a country as large as India? How will it affect the economy? Will it impact poor, ordinary citizens? And most importantly, will the decision indeed help the government crack down on black money?

Here’s what the economists and corporate bosses have to say:

Welcome the announcement made by the PM to derecognize Rs 1000 & Rs 500 note. It is perhaps most significant move ever taken to curtail the parallel economy. This move will give a sharp boost to all formal channels of payment which in turn will help the formal economy to grow.

Chanda Kochhar, Managing Director and CEO of ICICI Bank

Deepak Parekh, Chairman of Housing Development Finance Corporation, told CNBC, “The big bang reform is truly a transformational move.”

He also the decision a “brilliant move”.

(With inputs from Bloombergquint)