New Delhi [India], Nov 8 : In a major step to curb black money, Prime Minister Narendra Modi on Tuesday announced demonetization of Rs.
500 and 1000 currency notes with effect from last midnight. Leading a surgical strike that invoked storm amongst the nation overnight, the government announced making these notes invalid in a major assault on black money, fake currency and corruption.
Echoing support towards the government, various e-commerce companies have shown their positive sentiment towards Modi's sudden move as bold and courageous.
Sanjay Sethi, Co-founder and CEO: Shopclues This is a master stroke by the BJP government and a very bold move indeed.
Even though this is not the first time such a move has been made by a sitting government, what is significant this time is that it is built on the JAM trinity - Jandhan, Aadhar and Mobile - making it hard for the country to regress.
The country's infrastructure is much more prepared to make this a watershed moment for war against terrorism and black money.
This will play a significant role in putting India on track to becoming the economic force it is intended to be.
Sandeep Aggarwal, Founder and CEO: 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.
"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," he added.
Dhruv Agarwala, Chief Executive Officer: PropTiger and makaan.com This is a fantastic move to bring sanity and transparency in the real estate sector.
There will be a lot of inflow of foreign capital, because land prices will come down. We don't see an immediate fall in land prices, but transactions will certainly freeze. Anurag Avula, CEO: Shopmatic This move will have a pronounced effect on e-commerce companies such as ours Shopmatic merchants benefit from integrated and seamless payment gateway options which makes life and business really easy for them.
We welcome as many offline businesses to move to the online world. Amrish Rao, CEO: PayU India This is a welcome move by PM Modi for significant growth in Digital Payments.
We will also see huge reduction in Cash on Delivery transactions. This will definitely provide boost to Internet commerce and Payments. Archit Gupta, Founder and CEO: ClearTax.com This is a historic moment in India. No more black money. More people will be paying taxes, filing taxes and joining the mainstream economy. There will be deep pain to Indian citizens and economy in the short term. We are a country with large ambition and we will succeed. ClearTax will help citizens and businesses day and night to deal with the impact. Amit Sachdev, Co-founder and CEO: CoinTribe PM's move is a watershed moment in India's fight against the ubiquitous black money issue executed with the finesse and secrecy this issue deserves.
While this will have several significant benefits for the economy in the long term, there is likely to be a negative impact on sectors with high cash economy in the immediate term.
This move should improve India's position on transparency and corruption in the global league table enabling higher capital flow (FDI/FII) into India.
It would be good step for government to think of another VDS scheme with 70-80 percent penalty rate to bridge fiscal deficits.