The industry is likely to take the decision by the RBI, to withdraw Rs 2,000 notes from circulation, in its stride and its impact on the micro and small-scale industries will be negligible as per K.N. Narasimha Murthy, President, Karnataka Small Scale Industries Association.
Real estate agents have also said that the impact of withdrawing the currency will not have any impact on business. So far, they have not seen any impact due to this decision by the government. Most payments are done online, so there are no issues for major real estate brokers. The ban of the ?2,000 note may not impact the bigger players in the industry. However, small developers who buy their raw materials or pay for their other purchases will be affected.
As far as the economy is concerned, experts state that it would be least impacted, as the volume of such notes in circulation is relatively lower and a very large part of the cash in the system is unaffected by it.
The apex bank has given a wide window for depositing the notes, till September 30, for getting it exchanged. There will be a few practical problems in case of large volume transactions with respect to employee salaries and payments to suppliers as these are substantially done in Rs2,000 notes, but there is no scope for complaint as they continue to be valid as legal tender.
However, a portion of the micro, small and medium enterprises sector, which sees an incentive in cash-based transactions, could still be impacted. The only way out was to move towards non-cash transactions.
