• News
  • Columns
  • Interviews
  • BW Communities
  • Events
  • BW TV
  • Subscribe to Print
BW Businessworld

How are the industry leaders reacting to ban of Rs 500 and Rs 1,000 currency notes

Market sentiments may have suffered a jolt following government's surprise move to ban Rs 500 and Rs 1,000 currency notes in a bid to curb black money, but most industry leaders are applauding the move.

Photo Credit :


Mr. Rohit Malhotra, Country Head, Barcelos India

Prime Minister Narendra Modi's move to ban Rs 500 and Rs 1,000 denominations will certainly have impact on restaurant / hospitality Industry. Now there will be huge fall in the openings of the new cafes / restaurants. Although fall in property prices, drop in competition and reduce in unnecessary demand in labour will bring good time for restaurant industry ahead. This decision will hurt black money hoarders the most but it may also cause inconvenience to the common man — even if only for a few days.

Dr Naushad Forbes, President, Confederation of Indian Industry (CII)

Prime Minister Modi’s epochal move to stamp out black money once and for all means a definitive and impactful end to the parallel economy and wider use of cashless transactions. The Prime Minister’s address to the nation clearly mentions his vision and objectives for introducing the unusual and innovative move of making Rs 500 and Rs 1000 notes not legal tender any more. It sends out the strong message that corruption and underground transactions will no longer be tolerated. Prime Minister’s resolute action infuses huge confidence among honest tax payers, legal industry and the public at large that India means business when it comes to halting corruption and black money.

Dr Naushad Forbes, President, CII

Demonetizing high denomination notes can be an effective means of checking accumulation of wealth in cash. The government has taken a measure aimed at the heart of the black cash economy. CII congratulates the Prime Minister and the government for this step. Not only is the measure important but it requires extensive preparation for effective execution.

Mukesh Butani, Managing Partner, BMR Legal

An unprecedented, bold move leading charge from the front, the PM in the most secretively planned, seamlessly executed a move to root out unaccounted and counterfeit currency. A combination of national security concerns and wider agenda to filter out unaccounted income guided the Government to make this move. Figures of high denomination currency in circulation in past 5 years compared to growth in the economy pointed towards indicators of unaccounted money in circulation. Timing was perfect - a month after closure of the income disclosure week and a week after Diwali such that the impact of short term disruption in festive period is minimized.

Amit Modi, Director ABA CORP and VP CREDAI Western UP

It is move in the right direction by the government and an extremely bold and laudable to say the least. A lot of money will now get into the banking system and we believe that it is a commencement toward the cashless economy which is a sign of maturing economy. Also since most of the organized players are already using banking channels, they would only gain from this decision. Unorganized players and the secondary market may get impacted in short term.

Mr Chandrajit Banerjee, Director General, CII

Prime Minister Modi has taken a massive and strong measure that will have far-reaching positive implications for the economy. We congratulate the Prime Minister for his very courageous action that broadcasts the powerful signal regarding curtailment of the cash economy. It truly proves to citizens and the world that India can take strong economic measures when required, and underscores the will of the Government to undertake big bang reforms. We are confident that Prime Minister Modi will continue to take up difficult moves with huge macro impact on the economy in the future.

Mr. Sandeep Aggarwal, Founder, ShopClues & Droom

Modi government continues to adopt innovative and feasible way to eradicate black money and move India to 21st century nation. The demonetization of currency notes is a bold step in a positive way and a great move in the direction of weeding out black money. Not only will this move bring transparency in the system but will also control the menace of fake currency notes which has been increasing in numbers. After supporting startup, giving impetus to digital economy, this is another step for India to be at par with other great nations of the world

Mayank Bhangadia, Co-founder and CEO Roposo

This step taken by Sir Narendra Modi is path-breaking and revolutionary, as it sets a great example on how to bring change boldly and effectively. We as a nation have to fight corruption and what a way to begin! This bold move is just another instance of the Modi government’s vision of corruption free India.

Mr Sameer Grover, Founder and CEO Crownit

Crownit drives large volumes of business to local merchants and facilitates payments for those merchant. It has an option of hassle free cashless transaction and is the best way to deal with the present situation. This demonetization move by the Modi Government is extremely bold and refreshing. India is now on direct path to fully digital economy to ensure corruption free country which we are proud of.

Mr Rohit Khetrapal, Co-Founder, FindMystay

As the country has gone cashless for the next two days with Prime Minister Narendra Modi's announcement to remove 500 and 1000 rupee notes, it will shift the offline bookings in travel domain to online bookings but leisure travel will be slow over few days because of cash not available in the market that people need for Food Transport etc. For example Goa doesn't have Ola Uber and travelling is a challenge in a sense of cash. Although, this is a revolutionary step to curb corruption

Tags assigned to this article:
modi narendra modi black money