“The fact is that we have had a shock given to the currency system and, in my view, this will boost digital economy,” he said at an event in New Delhi.
The former Infosys chief executive said since there was a “loss in the confidence that people had in physical currency”, they would surely look for and adopt other alternatives.
Asked about the problems being faced by people, Nilekani said he would not comment on the political decision but on the merit of the project.
“I know that there are some problems and there is going to be problems for some time but over the past seven years we have already created a system to digitise our economy,” said Nilekani.
He also said although the “pain” will remain for some time, the extent of digitisation that otherwise would have taken three years would happen over the next three months.
Nilekani added that the “need of the hour” should be “cashless payments to merchants”, which will go a long way in boosting digital economy. He also expressed the hope that the government will increase the number of micro-ATMs in the country.
Tata Sons interim chairman Ratan Tata meanwhile said the demonetisation programme was among the “three most important economic reforms in India’s history” and needed the nation’s support for implementation.
“Demonetisation is amongst the three most important economic reforms in India’s history, along with Delicensing and GST (Goods and Services Tax),” Tata tweeted.
“The prime minister’s recent focus on mobile and digital payments will also greatly facilitate the transition from a cash-driven economy to cashless economy, which, in the long term, will enormously benefit the poor and the underprivileged,” he added.
In its bid to curb black money economy, the government on November 8 demonetised Rs500 and Rs1,000 notes.
“The parallel black money economy in India has fuelled tax evasion, money laundering and corruption. The prime minister has displayed enormous courage in waging war on the black market economy in the country through the implementation of a major demonetisation programme,” Tata said.
However, Bahujan Samaj Party (BSP) chief Mayawati slammed the government over the poor implementation of the scheme and said it was “politically motivated for political gains”.
