Demonetization is "a milestone" in the formalization of the economy and the fight against the black currency: Arun Jaitley defends the banknote

Arun Jaitley also said that the collection of personal and corporate income tax had increased as a result of the dismantling. (Reuters)

The demonetization ends in 2 years: India having completed two years of demonetization today, the Minister of Finance, Arun Jaitley, is again pronounced in favor of the exercise by explaining how the US government had helped to formalize the economy. Arun Jaitley said that demonetization helped fight black money and broaden the tax base. "Demonitization is a key step in a series of important decisions made by the government to formalize the economy," writes Arun Jaitley in a blog.

Adding Arun Jaitley, she said that the purpose of the demonetization was essentially to ensure that the weaker sections are an integral part of the formalized economy and digitization. "Demonitization has forced cash holders to deposit the same thing in banks. The enormity of the deposited and identified money with the owner has resulted in the suspicion that 17.42 lakh account holders have received the answer online through a non-invasive method, "he wrote. The launch of the Unified Payment Interface (UPI) in 2016 has contributed immensely to the digitization of the economy, he added.

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"The value of BHIM transactions rose from Rs. 0.02 billion in September 2016 to Rs. 70.6 billion in September 2018. The share of BHG transactions in the United States in the first quarter of the year was UPI transactions are about 48% in June 2017, "he added.

Against detractors of demonetization who claim that the exercise of the greenback does not make any difference. did not stop the use of cash, he said that "the confiscation of the currency was not a goal of demonitization." The overall goal was to integrate the formal economy and make pay the tax-payers, "he said.

Arun Jaitley also said that the collection of personal and corporate income tax was increasing as a result of the dismantling. 39 economy led to an increase in the taxpayer base from 6.4 million in the pre-GST regime to 12 million taxpayers in the GST regime, "he added.