“Digital Revolution and demonetization daring steps in the best interest of India and its people”: Prof. J.D. Agarwal

While delivering a Keynote Address on “Financial Inclusion, banking and Digital Dividends” at Digital Wallet Summit, 2017 being organized at Bengaluru, India on 16th June, 2017, Prof. J.D. Agarwal, Chairman and Professor of Finance, Indian Institute of Financesaid the world economy is moving towards new economic order. He advocated the need for social security facilities; employment growth and a social equilibrium in the society.

While addressing a large audience, Prof. Agarwal said Global Dis-equilibrium and interdependence,unemployment, establish balance between need for survival, socio-economic growth & environment discipline, focus on issues to build sustainable future in interlocked global economic environment, digital revolution, dividends and security are major concerns and global challenges before the economies today.

According to Prof Agarwal the world has entered a digital revolution today. More than 40 % world population has access to internet and even the 20% of the poorest people in the world have mobile phones. He emphasized that with digital revolution women participation has enhanced, they are more empowered, common man is empowered to develop independently and extremely poor, disabled and downtrodden would benefit maximum from the digital revolution.Digital technologies are spreading rapidly in developing countries. 7.4 Billion global population have internet access with around 1.1 billion people having high speed internet access said Dr. Agarwal.

Speaking on cyber security, Prof. Agarwal said privacy issues; social fabric and access to information; risks due to cyber security; government concerns on control; money laundering and terrorist threats are major issues before governments across globe today.

He strongly outlined online banking; mobile banking; virtual banking; developmental banking; retail banking; corporate banking and cooperative banking besides digital wallets, as major areas of thrust in the banking sector and financial inclusion today. He also mentioned Post office banking; banking on wheels; agro banking; education banking; micro banking; Islamic banking; healthcare banking and skill banking as major stepping stone for banking tomorrow for financial Inclusion.

Prof. Agarwal, while appreciating and welcoming a landmark decision of Prime Minister Shri Narendra Modi for demonetizing high value currency bank notes of Rs. 1000/- and Rs 500/- from 8th November, 2016 midnight, to induce transparency & growth, curbed black money; reduce corruption; control terrorism and bring equity to 120 crore citizens of India. He further said that the move of the PM will enhance growth and glory of India both domestically and globally in times to come.

Prof. Agarwal strongly emphasized that the step is not only a war against Black Money, Corruption, Terrorism; militancy but it is also a daring step in the best interest of India and its people. This step is honouring over 120 crore citizens who have been bearing a high cost of inflationary pricing of essential commodities in India. According to him, people at large have welcomed this decision in the best interest of a secure future and patriotism, having been cursed and crushed for decades due to the cost of corruption, militancy, terrorism and high inflationary pressures on account of black money.

According to Prof. Agarwal, the positive outlays of this demonetization includes rise in per capita income to double of its current level within next two to three years; replenishment of banks with fresh liquidity resolving emerging liquidity crunch and NPA problems in thebanking system; strengthening value of Rupee value; increase in FDI and FII Investment in the country; increase in foreign exchange reserves; inflation likely to slide down gradually; corrections in the stock markets and realty sector; enhanced confidence in the currency and global ranking and Money supply brought under control.

However, Prof. Agarwal said the Indian citizens are also expected to face some difficulties in the short run such as availability of petty cash; even today not all citizens are banked; realty sector may see a further downturn; migrant workers and domestic tourists would face difficulty in short run; GDP is expected to be sluggish in the short run, profitability of small businesses may be hit adversely; high denomination notes of Rs. 2000 are expected to go into vaults of influential and hoarders of black money. But still “the decision pronounced by PM Narendra Modi is the boldest decision in the right direction and he deserves all praise for this decision” said Prof. Agarwal.

While summing up his speech, Prof Agarwal laid down some of the key issues which require attention of the Government and policy makers. According to him, necessary support to policy changes, trust and confidence hold the key to growth and prosperity.

Indian Institute of Finance setup in 1987 pioneered business finance education in India

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This release was published on openPR.