According to Lendingkart Group and Dun & Bradstreet Insight Study, demonetisation of high-value notes is a step in the right direction to curb illicit economy and moving towards a cash-less and transparent economy.
"While this move is expected to impact overall GDP growth negatively in the immediate future, it will benefit the economy in the medium to long term," Dun & Bradstreet India Lead Economist Arun Singh said.
"Improved tax collection, increase in savings, transparency in the system and proliferation of a cashless economy are the big positives for the economy going ahead," Singh said.
From a credit provider's perspective, as cash based money- lenders shut shop, lack of adequate 'cash' in market will lead to increase in credit demand from formal sources, the report added.
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Sectors with high proportion of cash-based transactions will witness maximum disruption. These include real estate, retail, jewellery and luxury brands, among others.
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