Kristalina Georgieva says initiative would leave 'profound' effect on India's economy and a lesson for other economies.
Mumbai: World Bank CEO Kristalina Georgieva has backed November 8 note ban saying drive would leave a "profound and positive" effect on India's economy.
Georgieva told Hindustan Times that sudden recall of notes might have caused hardships in short term but in long term "demonetisation will help foster a clean and digitised economy".
“What India has done will be studied (by other countries). There hasn’t been such demonetisation in a country so big,” HT quoted her as saying.
Last year, the International Monetary Fund also said words of compliment for demonetisation that was widely seen as a corruption control measure. The anti- black money step sucked out over 86 per cent of cash in circulation.
Georgieva drew parallels between Prime Minister Modi's money ban and calling back of high denomination bills by European Union, which is effecting note ban in a phased manner.
On November 8, last year the government announced it was scraping legal tender status of Rs 1,000 and Rs 500 note effective midnight. The 50-day long drive saw people crowding at banks and staying in long queues to withdraw cash.