Mumbai, Dec 30: With the deadline for first stage of demonetisation approaching and overall success rate holding good, RBI governor Urjit Patel stated that the long term benefits of the move will be manifold and one should look beyond short term hardships. He laid emphasis on the transformative effect of the move on the entire economy.
"The withdrawal of specified bank notes will impart far reaching changes going forward. It is expected to significantly transform the domestic economy," Patel said on Thursday in his foreword to the half-yearly Financial Stability Report.
He said the increasing adoption of digital modes of payments will lead to greater intermediation, efficiency gains, accountability and transparency. Patel acknowledged there have been short-term disruptions and hardship to the public because of the demonetisation of high value currency.
On the domestic macroeconomic front, condition remain "stable" with a cool-down in inflation, the RBI Governor said, adding that the growth momentum has "slackened" recently.
