NEW DELHI: The government has said that it does not plan to have another demonetization if there is a cash surge in the economy.
To a question asked by Congress’s Rajya Sabha MP Rajeev Shukla, the finance ministry said it is the government policy to “move towards less cash economy and a digital payment ecosystem”. In that context, MoS finance Pankaj Chaudhary said, “the quantum of banknotes that needs to be printed broadly depends on the requirement for meeting the demand for banknotes due to inflation, GDP growth, replacement of soiled banknotes, reserve stock requirements, growth in non-cash modes of payments etc.”
He said the government in consultation with the RBI decides the volume and value of banknotes to be printed each year. But he denied that reducing cash flow was an objective of demonetization, quoting the government circular which listed three other reasons.
To a question if the government plans another demonetization in case of a cash surge in economy, the minister denied such a possibility.
To a question asked by Congress’s Rajya Sabha MP Rajeev Shukla, the finance ministry said it is the government policy to “move towards less cash economy and a digital payment ecosystem”. In that context, MoS finance Pankaj Chaudhary said, “the quantum of banknotes that needs to be printed broadly depends on the requirement for meeting the demand for banknotes due to inflation, GDP growth, replacement of soiled banknotes, reserve stock requirements, growth in non-cash modes of payments etc.”
He said the government in consultation with the RBI decides the volume and value of banknotes to be printed each year. But he denied that reducing cash flow was an objective of demonetization, quoting the government circular which listed three other reasons.
To a question if the government plans another demonetization in case of a cash surge in economy, the minister denied such a possibility.
