Statement from KPMG in India on RBI scrapping Rs 500 and Rs 1000 notes


Girish Vanvari, Partner and Head, Tax, KPMG in India


On the first appearance,  this announcement appears to be the most significant change made by the Modi government till date,  its impact could be even bigger than GST.  Yes there will be hardship in the transitory phase,  but this will eventually ease out black money and corruption in the economy.  This will also lead to surge in tax collections as paying taxes will be the only way to legitimise the cash of 500 or 1000 now onwards.  It will be interesting to follow the impact of this change on real estate prices and the bullion markets.


Sreedhar Prasad, Partner, E-Commerce and Start-ups, KPMG in India


30 Lakhs plus orders in the pipeline to be delivered as CoD from tomorrow. Unless an immediate “wallet pay on delivery” model is devised, many of them may get cancelled, or clog the logistics network with significant delays in delivery. Many customers may still be hesitant to adopt wallets in a short span of time.

Today’s online customers use wallets more because of the cash backs and convenience, than for not having another digital mode of payment like cards/online transfer etc.

Further, this may impact the number of new orders from tomorrow till the fresh currency is out…..Is this big enough to net off the top line gains from the festive season sales…hope not!


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