PM Modi reviews demonetisation move, discusses ways of digitisation with Cabinet ministers

Prime Minister Narendra Modi reviewed on Wednesday his decision to demonetise Rs 1,000 and Rs 500 notes with his Cabinet colleagues, and discussed ways to fast track digitisation to enable larger cashless transactions. 

The Prime Minister initiated the discussion on the move, which was announced last month, with the ministers after the meeting of the Union Cabinet ended this evening.

As it was not on the agenda, the issue was taken up after the Cabinet meeting was over.

The meeting assumes importance with the Centre's deadline of December 30, wherein people can deposit the old notes, nears, as the government pushes for improving digitisation to enable larger number of cashless transactions through various means.

The focus of the meeting remained digitisation, sources said, adding that issues like digital wallet services also came up for discussion. The government wants to expand the scope of this digital payment mode so that they can be accepted at more places like metro stations and petrol pumps.

A three-member committee of secretaries is already in place to study ways of transitioning India into a cashless economy. The banks have temporarily waived off the merchant discount rate to encourage card payments through swipe machines at business establishments.