Noteban is one of the important decisions of govt to formalise economy: Arun Jaitley

Two year after demonetisation of Rs 500 and Rs 1000 currency notes, Finance Minister Arun Jaitley has said that the note ban is one of the important decisions taken by the government to formalise the economy. The minister also highlighted the aim and positive impacts of the move.

Finance Minister underlined that confiscation of currency was not an objective of demonetisation but the actual aim was getting it into the formal economy and making the holders pay tax. Besides, he said that income tax collections and tax returns filings also increased on the back of noteban. Adding further he said that a lot of this money was diverted to the mutual funds for further investments and it became a part of the formal system.

Further, Jaitley pointed out that the demonetisation also helped to spur digitisation in the country, giving the transactions details of Unified Payment Interface (UPI) and Bharat Interface for Money (BHIM). The UPI transactions grew from Rs 50 crore in October 2016 to Rs 59,800 crore in September this year, while the value of BHIM transactions went up from Rs 2 crore in September 2016 to Rs 7,060 crore in September this year.