Special Correspondent
Daijiworld Media Network - Madikeri (SP)

Madikeri, Dec 2: "It is true that restrictions placed on exchange of old notes and withdrawal of cash from bank accounts have created problems and inconveniences for the people in general, but these problems are purely temporary. In the long run, this measure will result in a brighter future for financial situation of the country," analyzed K V Kamath, former chairman of Infosys Ltd and current president of BRICS Bank. He predicted the current problems being faced by the people because of demonetisation exercise to blow over by the end of December this year.

Kamath, who is on a private visit to Kodagu district, spoke to reporters at Mattikadu plantation near Suntikoppa in the district on Thursday December 1. He was frank and open in expressing himself on the current economic condition of the country and future hopes of large scale improvements.

"The steps being taken by Prime Minister, Narendra Modi, are in tune with the ambition to turn our financial system into digital one. It was very important for the Prime Minister to maintain top level secrecy before announcing large scale changes in economic system and note exchange process. As new currency notes are being printed and delivered to banks now, everything will turn normal by the end of this month," he stressed.

Kamath concurred that he does not have information about any of the other countries in the world having taken such a bold and drastic step in the past. He explained that demonetisation was resorted to achieve three things - war against corruption, war against circulation of counterfeit currency, and stop flow of money to internal and divisive forces engaged in disruptive activities in the country.

"I am aware that at one stage, rural people, medium and small income group people faced problems. At the same time, those who have already adopted modern technology and making online payments by using debit and credit cards etc have not faced any problems," he stated.

Kamath, who takes credit for leading ICICI Bank to the position of eminence as its managing director and chief executive officer, recalled that when he had planned to open 1,000 ATMs in 2001-02 when in that bank, people had laughed at him, as no one foresaw people visiting ATMs for their financial transactions. He felt that as and when people gradually shift to digital financial system, the country's economic condition will improve by leaps and bounds.

He, however, refused to field any question about the inability of Modi to bring back black money stashed away in foreign banks, but said that request made to Indians to declare black money they held in foreign banks had not evoked the response one hoped. "Again, people had been given an opportunity to declare black money they held, and transform it into legal by paying some tax. But that too failed to elicit expected response. Therefore, as a last resort, currency demonetisation was taken up, and this has borne fruits," he explained.

He said that these sweeping changes will begin to bear fruits for common people in about six months to one year, when rates of interest on loans and advances will begin to fall. At that time, people will wholeheartedly embrace the changes, he felt. He expressed happiness at the fact that Nandan Nilekani, who had played a stellar role in implementing Aadhar card scheme, has now been made a part of high level technology committee formed by Modi. He said he is confident that when cashless economic system falls in place, a system that is convenient for the people in general and society as a whole will come into existence.

In response to speculations that the Prime Minister may initiate E-property and regulation over possession of gold, he noted that Karnataka, through its E-Swattu, has already emerged as model for the country in documentation of properties. He felt that there is no need for Kannadigas to be wary of this scheme, adding that he did not have any information about regulating gold holding.

He pointed out that BRICS Bank and member countries had welcomed this revolutionary measure of demonetisation as a positive step, adding that crushing corruption and tackling black money are the two most difficult tasks. He felt that India had reached a stage where it had no other go but to take this step.

"BRICS Bank came into being about 18 months back, and has now been renamed as The New Development Bank. It has mega plans for turning the world green and achieving stabilized development. In its first year itself, it has drawn up loan schemes worth 450 million dollars. In the second year, it has projects worth 1,500 million dollars," he said. He mentioned that two loan schemes for India have been prepared for setting up solar projects and road construction and development, totally worth 600 million dollars.