International credit and debit card players who have been pushing for plastic money, backed the government’s decision to scrap high-value bank notes effective from Wednesday. Welcoming the decision, Visa International, which leads the plastic card issuance market globally as well as in the country, said this bold move will accelerate the economy towards a cashless economy. Quoting its own report, it said the cost of cash leads to a loss of 1.7 percent of GDP in the country. “This is one of the most significant steps that we have seen so far towards India becoming a cashless economy,” T R Ramachandran of Visa India said.
He said Visa is committed to expanding access to electronic payments across the country by helping provide a safe, convenient and flexible alternative to cash. Porush Singh of Mastercard also hailed the move and extended its support to the government efforts, saying it fundamentally addresses the underlying “cash engine that drives the shadow economy”. Singh hoped that it will lead to further economic growth by encouraging cashless transactions and reduce crime rate.
Mastercard promised working with the government to provide cashless solutions that combat corruption, create growth, and inclusion for all members of society, he added.