RBI has enough cash, 30% tax advantage for digital transactions: Jaitley

Arun Jaitley-wefornews-min

New Delhi, Dec 20: Finance Minister Arun Jaitley on Tuesday assured that Reserve Bank of India (RBI) has enough new Rs 500 and Rs 2,000 notes to last even beyond December 30.

His comments comes after RBI announced new regulations on currency deposits earlier on Monday.

The new regulations announced yesterday said that people can now only deposit Rs 5,000 in scrapped notes and even that, they can do only once until December 30.

The new rules state that people can now only deposit Rs 5000 in demonetized currency and that too only once until December 30. Moreover, the RBI said that those depositing more than Rs 5,000 in scrapped currency notes will be scrutinised and questioned.

However, Jaitley clarified the same and said anyone going more than once “raises suspicion”.

“Whoever has old currency must go and deposit it in one go, if somebody goes everyday it raises suspicion, since exemptions have been lifted, whoever has old currency must deposit it in one go,” was all Jaitley said. The exemption he’s referring to is the centre allowing old notes to be used for certain public utilities.

“The RBI was adequately prepared for demonetisation. There has been no day when RBI did not dispense adequate cash to banks has enough currency stocks that will last beyond December 30. Even today, RBI has more than adequate cash to last not just till December 30 but even more,” Jaitley added.

Also, Arun Jaitley on Tuesday said rail commuters must pay for the service they receive.

He said year after year, the success of Railway Budget was measured by subsidising consumers and making populist announcements regarding trains.

“Railways got caught in a battle where populism prevailed over performance and the basic principle on which any commercial establishment is to be run, the first essential principle is that consumers must pay for the services that they receive,” he said.

“The core competence of railways is really to drive trains, to provide those services. Hospitality may not be the core competence of the railways and therefore, what is not within its core competence, the principle of outsourcing — which is accepted world over — can be a logical addition to those activities of railways,” Jaitley added.

Jaitley also said that small traders and businesses will get a tax advantage of more than 30 per cent for digital transactions.

“There will be a significant tax benefit for small traders if you turn digital. It is a tax incentive to support digitisation of economy,” Jaitley told the media.

“If we calculate, many traders will get a tax advantage of more than 30 per cent for transactions in digital mode,” he added.

Wefornews Bureau

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