#News24MoneyManthan: Cash payments will be penalised, so pay via cards


New Delhi: The government wants the youth of the country to make sacrifices so that the country progresses economically. The government also said that the shock of note ban was necessary for the good of the country. NITI Ayog CEO Amitbah Kant onWednesday said that note ban will not only give a telling blow to black economy, but will also generate revenues for the welfare of the people.Kant was speaking at the News24MoneyManthan, a conclave orgnaised by News24 to discuss note ban and its affect on common man. 

 

 

Kant made it clear that cash payments are no longer welcome, and they will be discouraged, alluding to some kind of disincentives in form of penalties. On the other hand people will get benefits and discounts for cashless/digital payments .

Key points about what Amitabh Kant said 

*This disruption was necessary to take India out of black economy

*Can't we stand in lines for 40 days for India to compete with China

People will have to make some sacrifices

*Our target is to make digital payments cheap

*Our target is make cash payments costly

*In few days  all mobiles will be walking ATMs

*People are not using debit/cards for payments

*Note ban must to bring down interest rate, increase tax compliance

*Black money in economy is being unearthed 

*Black money is being converted, and is coming into the system


*When black money is coming into system, it is also bringing tax for government

*Youth have to make sacrifices for the nation to move ahead

*Our aim is to turn informal economy into formal economy

*Our aim is turn cash economy into digital economy    

*There will be quarterly losses

*India is not Tata or a Ambani that we look at quarterly losses, we have to look at economic growth 2 years from now

* Note ban was necessary to bring people in tax net

* 99% do not pay taxes and 1 % pay tax, this is not acceptable

* Note ban will increase tax compliance


*We should not doubt everything, online transactions are safe

*Cyber security audits were done to ensure security for digital payments

*Cashless transactions are secure

*Aadhar-based transactions are more secure since it involves Iris, finger prints

*All online payments have 2-staged authentication, so are secure    

*We had reservations about computer initially, look where we are today

*Most bank officials have done good work, there are some black sheep

*Govt will punish the corrupt bank officials

  

*Situation will normalise within next 15 days

*Around Rs 11-12 lakh crore cash will come in market

*Excess cash is not good for economy

*This disruption  was must for long-term gains