Notes ban to spur economic activity: Govt.

TIL Desk/Business/New Delhi-The government’s demonetisation move is set to augment the economic growth as interest rates have come down as a result of increased deposits in banks, Parliament was informed today.

It is noteworthy that the government is being targeted constantly from across the quarters for nullifying old Rs 500/1,000 notes from circulation in November, contending it would impact the economy negatively as India is a cash dominant market.

“After demonetisation, more deposits came into the banking system,” minister of state for finance Santosh Kumar Gangwar said in a written reply to the Rajya Sabha. “This in turn leads to increasing the demand for loans in general and housing loans in particular as well as credit flow to micro, small and medium enterprises which will spur economic activity and generate employment opportunities,” he said.