In one of its most remarkable moves, the Center Government has introduced INR 2000 denomination notes along with banning the existing INR 500 & 1000 notes.
Notwithstanding the small inconvenience that might be followed in the next few days, the move by the government can go a long way towards cementing a more corruption free & transparent business environment.
The new step will be a major deterrent towards the practice of hoarding a black money. As mostly black money is saved in the form of high denomination of INR 500 & 1000. However, some might argue then why is it required to introduce INR 2000 note. The answer is that under certain circumstances, large denominations are required.
Impact on Real Estate
In the longer run, the new step taken by the government will enable the Indian real estate to flourish in a more transparent & hassle free business environment. Although certain quarters believe that there might be some downward pressure & price correction owning to the fact that cash denominations play a significant part in real estate transaction. The impact might be more widely seen in the resale & tier II markets. But otherwise it is a welcome step.
The new initiative by the government will play a crucial role in curbing down the use of black money in Indian real estate industry. In conjunction with other major steps such as RERA, it can help in instilling more confidence amongst the investors & help the sector attract higher volume of Foreign Investments.
