Demonetisation demonised unnecessarily: Aditya Puri

Move has created transparency, says Anand Mahindra

A DAY after Rajiv Bajaj lashed out atthedemonetisationexercise,industrialist Anand Mahindra and bankeradityapurionfridaystood by the government, saying the move has created transparency but is unnecessarily demonised.

Puri, the managing director and chief executive of HDFC Bank, said, "demonetisation is being demonised for nothing" and listed several positives from the move, while speaking at a Nasscom summit here.

Mahindra, speaking at a Nasscom event, said: "He (Prime Minister Narendra Modi) has created transparency and traceability. He has changed the mindset (in such a way that) everybody is going to think twice about going back to their old ways..., the conversiontodigitalhasoccurredata pace much faster."

It may be noted that speaking at the same event on Thursday, Bajaj Auto MD Rajiv Bajaj had said it is incorrect to blame the government for bad execution during the demonetisation exercise, saying the idea to ban high value notes was itself "wrong".

The positives of demonetisation drive listed out by Puri included more money in the system, a wider tax base, lower interest rates with possibility of goingdownfurther,greatertransparencyandcostreductionsinthe system.improvisingonyesteryear Bollywood actor Dharmendra's dialogue 'chun chun ke maroonga' to ‘ Chun chun ke nikalenge', Mahindra, who termed Modi as a "practical man", said the government may not have succeeded in getting a windfall out of the exercise but will get "somewhere" to bridge the deficit.

Puriexplainedthatdepositing money into bank accounts does not legitimise it and added that thegovernmentwillbeusingdata science to get to the wrongdoers and called this a "big idea".

Mahindra said corruption is "virtually non-existent" in the corridors of power in New Delhi under the present Modi regime.

Drawing from his recent field visits, Puri asserted that agricultural activities have not been affected because of the demonetisation exercise. "The sowing was at a record level, let us be very clear about this, agriculture did not suffer," he said. Puri also dismissed notions of newer ways of corruption being found out because of demonetisation.

Criticising prepaid wallets, Puri said such companies which hold on to customers through cash-backs are loss-making and have no future "I think wallets have no future. There is not enough margin in the payment business for the wallets to have a future," Puri said. "Wallets as a valid economic proposition is doubtful. There is no money in the payments business. The current loss reported by market leader Paytm is Rs 1,651 crore. You cannot have a business that says pay a Rs 500 bill and take Rs 250 cash-back," Puri said.