Demonetisation of Rs500 and Rs1000 currency notes can have an adverse effect on the market but it will also hit the black-money, opined students of IIM Raipur during a panel discussion held here on Saturday.
According to the students, there is a liquidity crunch in the market and many sectors like Realty, Banking, IT & E-commerce are being heavily affected.
In light of the event, Finatix-the Finance Club of IIM Raipur, organised a panel discussion on the topic ‘demonetisation and its effect on various sectors’.
While praising the move to demonetise the Rs500 and Rs1,000 notes, Swagat Kumar Dash, a PGP 2nd year student said, “Kudos to the NDA Government for the bold step, which I perceive as one of the biggest reforms post liberalisation era apart from the other big reform, GST, which again has been implemented by this Government. The long-term effect of the demonetisation step will be positive with a blow to the Parallel Economy and unorganised sectors involving significant cash transactions.”
Echoing similar thoughts, that the long term benefits would be much higher, Arkaprabha Bhattacharya, a PGP 1st year student said, “Companies like Visa, MasterCard, and Paytm -who generate revenue through cashless wallets, will have a big-time effect.”
According to Bhattacharya; the RBI estimations suggested that 16.5 billion and 6.7 billion notes of 500 and 1000 respectively are floating in the economy and all the cost that went on to print these will go sunk which cannot be undermined. But the amount of collection of black money that Government is expecting is a lot more than that as almost 84% of the cash is in the notes of 500(45%) and 1000(39%).”
Speaking on the challenges of Demonetisation, Pratik Garg, a PGP 1st year student, said “some of the challenges that I see for the implementation of demonetisation are, introduction of higher denomination note of Rs2,000 which might counter the effect done to reduce the large value storage of black money.”