<\/span><\/h3>\nThe demonetization step moved banks into the wonderland as their deposit mobilization has been reinforced. As a result, more households will find it commanding situation to open bank accounts & will use cards for payments, overall Indian banking sector witnessing massive increase in banks\u2019 liquidity. The direct result of boosted liquidity in banks is the dropping of deposit & lending rates that supports to ease the weight of EMIs & indicates well from a macroeconomic front for real estate, automobile sector & the industry which have large funds available for businesses.<\/p>\n
In addition, the repression of black money by demonetization will lower inflation, as this move allows transactions to go further into the banking system, which will ensure transparency. Another great advantage of this decision is a direct attack on terrorism. The frequency of cash usage for purchasing also made India inclined to high inflation. The corruption which mainly relies on hard cash exchange is actually eating away the purchasing power of money. The decline in the use of cash will have a braking effect on inflation & this will be a further encouraging point for the macro fundamentals of India.<\/p>\n
To make the story short (& sweet), Demonetization will ring many bells, but will be helping India move ahead! Demonetization will lead to digitization of currency & widening of tax net. Imagine the Real Estate which has sky rocketed, will be affordable again along with lesser interest rates. More CASA with banks will increase their lending capacity, thus more rate cuts in interests, etc.<\/p>\n
(This article expresses the author’s opinion. ESDS.co.in does not endorse the view in any way.)<\/em><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"Demonetization! Breaking the grip of Corruption, Terrorism & Black Money.. really? Demonetization! Demonetization!! Demonetization!!! All news channels flooded up since 2nd week of November 2016! What is this Demonetization?? The recent announcement of 500 & 1000 rupees currency notes demonetization put everyone in our country in the life-size test due to the brutal suppression of… <\/p>\n
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