Note ban led to increase in digital transactions: Arun Jaitley

Demonetization has led to increase in volume of digital transactions apart from widening of tax base, according to Finance Minister Arun Jaitley.

“Some circles have lack of understanding and measure success of demonetization with only how much money reached banks... increase in volume of digital transactions, widening of tax base and squeezed circulation of high denomination currency were the real measures of success of demonetization,” Jaitley said while launching Google’s new digital payment app Tez on Monday.

He said the compulsion of going digital after note ban has become a habit and e-payments will gather pace on account of government initiatives and technology advancements.

High denomination currency circulation has come down in terms of volume after demonetization of Rs 500 and Rs 1,000 notes last year, the minister said.

“We reached a peak figure (after demonetization), then it marginally slipped and is now bound to pick up again,” he said.

“As we stand today, high denomination currency has squeezed... the squeeze process is going to happen in the natural course of the economy. Second important test is as a consequence of how much we are able to expand the number of assessees and the tax base, both direct and indirect,” he said.