International Monetary Fund (IMF) has supported Prime Minister Narendra Modi's efforts to fight corruption through the currency control measures and illegal financial flows in India. However, it said that the move has to be managed prudently to minimize possible disruptions keeping in mind the large role of cash in everyday transactions in Indian economy.
The Prime Minister has expressed happiness at the patient and orderly manner in which citizens were getting notes exchanged in banks following cancellation of the legal tender character of high-denomination bank notes of Rs 500 and Rs 1,000. He also said that it is heartening to see such warmth, enthusiasm and patience of the citizens to bear this limited inconvenience for a greater good.
Further, Government’s recent decision would help to make more and more transactions become digital and people will now disclose income and pay taxes. The Indian banks reopened on November 10 and have started issuing new currency notes of Rs 500 and Rs 2,000 in the market. Meanwhile, the government is also planning to re-introduce Rs 1,000 notes in few months.