Industry welcomes ban on 500, 1,000 notes

​Hyderabad: Industry on Tuesday welcomed surprise announcement by Prime Minister Narendra Modi to immediately ban high value currency notes of Rs 500, Rs 1,000 denominations to weed out black money menace.

“Prime Minister Narendra Modi’s and Government of India's move to curtail the black money is probably the boldest move in the history of independent India,” said Ravindra Modi, President, Federation of Telangana and Andhra Pradesh Chambers of Commerce and Industry (FTAPCCI).

Pointing out that surprise element to ban with immediate effect would bring out the desired effect, he said: “The PM's promise that honest people shall not be harassed to be ensured effectively as small and medium traders transaction through cash currency only,” he said.

Meanwhile, RBI Deputy Governor R Gandhi said that there were 16.5 billion units of Rs 500 notes in circulation, while the number for Rs 1,000 notes was 6.7 billion. Gandhi said this during a press conference after Prime Minister Narendra Modi announced in a televised address that Rs 500 and Rs 1,000 notes would cease to be legal tender from midnight on Tuesday.

A P K Reddy, president, Federation of Small and Medium Enterprises of India (FSME), said that small and medium enterprises would flourish as the government decision would curb black money. “There will be a huge impact on the real estate sector in which black money plays key role,” Reddy said.

Hailing the decision taken by the Prime Minister, M Venkateswarlu, President, Telangana Chambers of Commerce and Industry (Tecci), said that the move would eliminate black money from the society.

“It is a great move from the central government. People who have black money are in for a rude shock as the government decision has come as bolt from blue for them,” he said. He however said that there would not be any adverse impact on the businesses and companies which had been doing business genuinely.