Recall of Rs.500 and Rs.1000 notes: How will it impact the industry?
Aamir H Kaki In an unexpected move, Prime Minister Narendra Modi announced the demonetisation of Rs.500 and Rs.1,000 notes from midnight. This move has been welcomed by the industry leaders, who said that it has been a ‘bold step’ and a great attack by government to curb black money. But what would be the impact on corporates, exporters and bankers, on this move by the government. Let us take a look. SMEs: Many SMEs operate on cash for small transactions as well as for employee payments. The sudden demonetistion will hamper trade in the short term, though most see it as a positive for the sector. Viren Bavishi, Director, Trade Association of Information Technology (TAIT), the association of SMEs in IT sector, says, “Now ...
