Demonetisation will redefine new normal for Indian economy: Jaitley

New Delhi, Nov 18 (IANS) Lauding the government’s surprise demonetisation move, Finance Minister Arun Jaitley on Friday said that it has attacked India’s parallel economy that was running outside the banking system for the last 70 years and a “new normal” will become the way for the country.

“Shadow or parallel economy had become a way of life. When you have a large chunk of currency outside the banking system, taxation system is narrow, because shadow economy becomes way of life. Demonetisation redefines that,” Jailtey said at the India Economic Conclave organised by ET Now here.

“Demonetisation move will set a new normal for the economy. We see good, steady economic growth in coming years. We expect India to be a large digital economy in coming years,” he added.

The move has suddenly improved the lending ability of the banks, he added.