BUSINESS

Jaitley Reassures There's Enough Cash, Promises Tax Benefits To Small Businesses For Cashless Economy

He has also urged the public to deposit their old currency in one go.

20/12/2016 2:06 PM IST | Updated 20/12/2016 3:36 PM IST
Kim Kyung Hoon / Reuters
Indian Finance Minister Arun Jaitley speaks at an "Invest in India" forum in Beijing, China, June 24, 2016. REUTERS/Kim Kyung-Hoon

In a fresh plea to the public to use digital payments, Finance Minister Arun Jaitley said India will now offer tax incentives to small businesses who engage in cashless transactions, while reassuring the government and RBI have enough cash to last beyond Dec 30.

The move is part of the government's drive to promote a cashless economy, Jaitley said, after the government decided to scrap high-value banknotes last month in a bid to make them worthless for holders of unaccounted wealth.

He also urged the public to deposit their old currency in one go following Reserve Bank's notification on Monday that deposits exceeding Rs 5,000 would draw scrutiny. The government had previously said that the public would have 50 days to deposit the old currency.

"If you have old currency, deposit it with banks at one go as repeat deposits of such notes raise doubt," he said.

He also reassured that RBI was adequately prepared for demonetisation and has enough currency stocks that will last beyond December 30. Indian banks have seen a cash shortage following the radical demonetisation move with some experts saying cash normalcy could take months.

With Reuters and PTI inputs

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