Experts weigh in on RBI's decision to withdraw ₹2,000 notes, Businesses seek clarity

Hyderabad: Following the Reserve Bank of India’s decision on Friday to withdraw the ₹2,000 denomination notes, Deccan Chronicle spoke with several experts on its likely impact. Businesses like petrol bunks need clarity, an official said.

Some said it was a big boost for UPI and online transactions and that it would help curb black money flow

A consumer, however, said that people had stopped had stopped using the notes long back.

People were holding tonnes of money which will now be going back to the banking system. Banks will have a greater chance to fund more projects, thus resulting in a more vibrant economy. This will also ease inflation. However, it will be a big blow to the real estate sector; prices may go down, albeit for a brief period. This is the right time to invest. There might be a small increase in prices of precious metals, but it will only be temporary. There will be a major boost for UPI transactions and online payments. GST collections will go up drastically.
Girdhari Lal Toshniwal
Founder-partner, PPKG & CO. Chartered Accountants, Hyderabad

What about petrol pumps where we accept cash – the guidelines on who can accept and who cannot have to be clarified. It is legal tender, which means it can be used in business, but for the banks it is not legal tender. When there was a note ban last time, people exchanged the notes at petrol pumps and later we had to face myriad problems from the I-T department. This time, we do not want to be caught in a similar situation.
Rajiv Amaram
Joint secretary, South Consortium of Indian Petroleum Dealers

One must note that the life-span of around 80 to 90 per cent of the ₹2000 notes issued prior to March 2017 would end. The move will help check black money while official transactions will be part of regular life.
G.V. Krishna
Trade commissioner-Ghana, India Africa Trade Council (IATC)

We barely see anybody use ₹2,000 notes on a daily basis, unless someone is paying huge amounts in cash. Probably, the printing of notes was stopped sometime back. Even banks haven't issued them in a long time. We have been given time until September which will be enough for people to exchange the notes. In a way, ₹2,000 notes were brought in to end black money. Since purpose has been achieved, its exit was inevitable.
Narasimha Murthy K., finance expert

I almost always depend on UPI transactions, unless the person doesn't accept online payment. Moreover, ₹2,000 is too big a denomination. Finding change for it is a problem. Even ATMs no longer seem to dispense these notes. I guess we're moving on without much problem.
Dennis Keith, IT employee