On the eve of the expiry of the deadline to deposit demonetized currency in banks, Prime Minister Narendra Modi urged citizens not to regard digital transactions as a short-term substitute for cash payments. “Digital transactions should not be viewed as a short-term substitute for cash payments,” Modi told India Today magazine in an interview. Also Read - India may soon announce its own ‘Atmanirbhar’ app store as alternative to Google, AppleAlso Read - Aarogya Setu app may soon come pre-installed in new smartphones in India
“Digital transactions facilitate formal accounting and sizing of the economy,” he said. “They also deliver greater tax compliance,” he added.
On November 8, Modi announced that Rs 1,000 and Rs 500 notes were no longer legal tender, saying the move was to combat corruption, counterfeit currency and terror financing. Complementing the demonetization process, the government announced a series of measures to promote digital payments to move towards an economy making less cash transactions. ALSO READ: RuPay card usage increased seven times after demonetization: NPCI
“Digital payment is a way of cleaning the economy in the long-run,” the Prime Minister said.