Terming the move to demonetise Rs 500 and Rs 1,000 banknotes as a “gamechanging” one which will bring structural changes in the economy, ICICI Bank chief Chanda Kochhar said on Tuesday it could also help cool inflation.
“It also curtails some amount of that discretionary large spend which can have a cooling impact on inflation. There is a whole lot of positive structural impact which it will create in the economy,” Kochhar told PTI.
“This is a significant move which can be gamechanging and bring about structural changes in the economy. It will curtail black money,” the Managing Director and Chief Executive of the largest private sector lender said.
It can be noted that the sustained high inflation in the country has been one of the biggest factors which has kept the lending rates among the highest in the world, which many quarters blame for stifling growth.
Stating that a high amount of focus and administrative efficiency will have to be displayed in the transition to the new regime, Kochhar maintained that the bank will have to close its ATMs and branches for public tomorrow to flush out the older high value notes.
She, however, exuded confidence that the banking system will be able to deliver in testing times as it has done in past like the process of having cleaner notes across the system.
“The banks will gear up, the RBI is gearing up, the currency chests are gearing up. I think a little bit of understanding and patience on part of the customers (will help),” she added.