India Inc. on Tuesday welcomed the government's decision to demonetise the Rs 500 and Rs 1,000 notes from Tuesday midnight.
"Demonetising high denomination notes can be an effective means of checking accumulation of wealth in cash," said Naushad Forbes, President of industry body Confederation of Indian Industry (CII).
"The government has taken a measure aimed at the heart of the black cash economy. CII congratulates the Prime Minister and the government for this step. Not only is the measure important but it requires extensive preparation for effective execution."
Another leading business body Federation of Indian Chambers of Commerce and Industry (Ficci) said that it supports the government's decision to suspend the legal tender status of notes of Rs. 500 and Rs. 1000 and to introduce new currency notes.
"This is an extremely bold move by the Prime Minister and will have a debilitating impact on the parallel economy in the country as well as deal a body blow to terror financing," Harshavardhan Neotia, President of Ficci, was quoted as saying in a statement.
"Ficci completely supports this move of the government and complements it for its continuous and comprehensive measures to deal with the issue of black money in the country."
"There could be some inconvenience that this change may lead to, for the people of our country for a few days. However, we are sure that government and RBI will take adequate measures to ensure the transition happens smoothly," he added.
Chanda Kochhar, Managing Director and Chief Executive of ICICI Bank said: "I welcome the announcement made by the PM to derecognise Rs 1000 and Rs 500 notes."
"It is perhaps the most significant move ever taken to curtail the parallel economy. This move will give a sharp boost to all formal channels of payment which in turn will help the formal economy to grow."
State Bank of India (SBI) Chairman Arundhati Bhattacharya elaborated that: "We have just now been advised of the government move to demonetise current series of Rs 1000 and Rs 500."
"We have handled demonetisation earlier and will do so again. Tomorrow banks will remain closed in order to withdraw these notes from counters and ATMs."
"We will strive to restock ATMs at the earliest and make them operational. Government has given enough exemptions to ensure urgent needs are met."