Stating that the initial loss to business due to demonitisation as high as 75 per cent, National secretary general of the Confederation of All India Traders (CAIT) Praveen Khandelwal says “it will take three to six months for normal business activities to resume”.
What are your observations about demonetisation move of PM Modi?
Demonetisation of high value currency by the Government is a visionary step which in turn will craft new fundamentals of economy over a period of time and will also curb flow of black money in the flow. Of course, in initial days it will impact normal life to a great extent but at a time when currency flow is stablised, it will be an advantageous situation for a transparent economy.
Are such steps going to deal with the menace of black money?
It can be termed as one such step in direction of curbing black money. Undoubtedly it is a big step but we need to draw a comprehensive policy to identify the sources of black money and to curb them in an effective manner means various other support initiatives are required to deal with menace of black money.
How is trade affected with the demonetisation move of government?
Due to demonetisation, the trade and commerce in the Country has been badly affected due to acute crunch of currency in the market. One can understand that India is a cash based economy and as such lifting out huge amount of currency will certainly bring business at standsill for quite some time but over a period of time it is going to destroy the monopoly of big people who were controlling the market with deep pockets and resources and will also bring level playing field for small businesses and better business avenues and opportunities.
Elaborate the hurdles being faced by traders following demonetisation move?
Demonetisation resulted into trading activities comes to a standstill for the time being. No money either with traders or consumers. Restriction on withdrawal of money from even Current Account . Shortage of smaller denomination currency is yet another factor in less quantum of business. People are making only emergency spending which has caused a set back to business.
Please share the details of loss faced by traders.
Initial days there was a loss of business to the extent of 75% but with little flow of money in the market it has reduced to about 60% as of now and we hope that in coming days situation will improve and cash flow in the market will be more better.
Will you (Traders) adopt digital cash transfer? If not why?
Yes, since we know that cash flow will take more time and we cannot sit idle therefore all options of digital payments needs to be adopted to re-generate business activities in the country. Moreover, under GST regime, digital payment will be an essential fundamental since tax have to be paid through Credit Card or debit card, NIFT and RTGS and not by Cheque or Cash. Hence, everyone has to fall in line adopting dihital payments. The CAIT in association with MasterCard and HDFC Bank is engaged in a national campaign since last about two years for promotion of digital payments in trading community. We have recently released an exclusive website www.lesscash.in to aware people about available options of digital payments.
How long will it take for things to normalise?
We expect that after a month, smooth conditions will start flowing and between a period of three to six month normal business activities will resume.