Updated By: LatestGKGS Desk
Fight Against Corruption 5 benefits of note ban on Indian economy
500 1000 note ban benefit Banks, economy, fall in interest rate, easy loans
The ban of Rs.500 and Rs.1000 denomination note by Prime Minister Narendra Modi would benefit the economy in various ways.
Firstly the base of deposits would increase as Rs.4500 Billion is with the people and due to depositing this amount with the banks would increase the base of the deposits in banks.
Secondly, the rate of interest on loans would decrease due to savings and current account deposits people can get easy loans by the banks.
As per RBI, in the year 2017-18 the repo rate would decrease to 100 bps and the monetary policy to rise
RBI can easily frame monetary policy and take few risks due to currency flow in the economy.
Due to PM’s Jan Dhan Yojana, the people would deposit money and in turn, the base of the banks would be strong and would promote people to deposit money with the banks.
