New Delhi [India], Jan 8 : Highlighting the government's initiative to curb black money, Finance Minister Arun Jaitley on Sunday said the period of pain and inconveniences post demonetisation is getting over, adding economic activity is being restored.
"The banks today admittedly have a lot more money available in order to lend for growth. Since this money constitutes low cost deposits with the banks, it is bound to bring down the rate of interest," he said putting forth his views in his blog posted on Facebook.
He said that size of the banking transactions and consequently the size of the economy is bound to increase.
"In the medium and long run, the GDP would be bigger and cleaner. Both these things have already happened. Lakhs of crore, which were floating in the market as lose currency, have now entered the banking system.
Not only has the money lost is anonymity, it's owners, after being taxed, are entitled to put it to more effective uses," he added.
Citing facts, he said that large quantum of high denominational currency has been deposited with the banks and it does not render this money to be legitimate cash.
"Black money does not change its color merely because it is deposited in bank. On the contrary, it loses its anonymity and can now be identified with its owner," he said..