Madikeri: Demonetisation will help in the overall development in the long run and improve banking structure, opined K V Kamath, Chairman, BRICS Bank. He said the troubles faced by common people related to exchanging currency are temporary and will blow over by month end.
On a private visit to Kodagu, he was speaking at Mathikad Estate near Suntikoppa. He lauded the firm decision of the prime minister on demonetisation.
On three counts, demonetisation will help Indian economy including a check on the circulation of fake currency, stop supply of funds to terror groups and stem corruption to a great extent, he stated.
Digitising Indian economy and demonetisation will reduce bank interests and will take around 6-12 months for the common people to avail the benefits, K V Kamath stated.
He recalled an instance when people ridiculed him when he decided to open 1000 ATMs as ICICI Bank Chairman in 2001-02 and asked, “Didn’t people benefit from it? Demonetisation will not trouble people resorting to online transactions, credit, debit cards and other digital mode of payments but will cause inconvenience to those relying on cash transactions. However, the bold step by Modi will help the country in the long run and take it towards cashless economy, he said.
The government gave several opportunities to people to declare their wealth and assets held abroad initially and then asked them to disclose the black money held by them. When those moves did not bear fruit the PM had to resort to demonetisation where secrecy had to employed while implementing it, he stated backing PM’s initiative.
BRICS Bank associate member nations have welcomed the move and felt the move imperative in the interest of Indian economy in the current economic scenario, he stated.
Reacting on regulations on the ownership of property and gold, he said Karnataka had taken the lead in E-Swathu documentation but did not comment on gold.
On BRICS Bank
Commenting on BRICS Bank, Kamath said, “The bank was established keeping in mind green and sustainable development. In the first year a 450 million dollar loan scheme was planned which will go up to 1500 million dollars this year. India will get 600 million dollars towards implementation of solar projects and road development.”