Demonetization will be beneficial in long term: LS Speaker

Lauding the Centre's move of demonetizing 500 and 1000 rupee notes in a crackdown against corruption and black money, Lok Sabha Speaker Sumitra Mahajan on Wednesday said that it would cause inconvenience for short period but will prove to be beneficial in the long run.

"It's a very good decision. It needs strength and Narendra Modi ji has shown that. Its results will be good. It will cause inconvenience for short period but is beneficial in long term. I will urge all to cooperate. This decision is in favour of the nation. It will take time to yield results," Mahajan told ANI.

Union Finance Minister Arun Jaitley has said the government's decision will move the country towards a cashless economy.

Reassuring the people that those having lawful money would have nothing to fear, Jaitley said this is a major setback to the parallel black money economy because a lot of currency operating outside the system will now have to be brought into the banking system.

"The government believes that this decision has been welcomed everywhere. This major step with help India's credibility," he told the media in New Delhi.

The Finance Minister further said this decision will change the way people spend and keep their money.

He also said the decision is of significant advantage to the economy, adding both the Centre and states will benefit from with more revenue accruing in the economic system.