Cost of demonetisation benefits will be felt over the long term: Subbarao

Vastavam web: The cost of demonetisation has been paid in last eight months but benefits will be felt over the long term, former RBI governor D Subbarao said today.”Everybody agrees upon the costs of demonetisation. These were for the short term, while the benefits will be felt in the long term”, Subbarao said at the second foundation anniversary of Bandhan Bank.”Thousands of jobs were lost, patients could not receive treatment, people had to stand in long lines. There had been a lot of pain,” Subbarao said.

All these could not be quantified though, he said adding that it was seen that the fourth quarter of the last fiscal’s GDP had suffered a substantial blow.However, the drive towards digitalisation does not necessarily require demonetisation and can be done without it, he said