Note ban led to formalising large part of economy: Modi at Asean

Manila: Prime Minister Narendra Modi said demonetisation coupled with measures like linking of the Aadhaar number with bank accounts has led to formalisation of a big part of the Indian economy.

Speaking at the Asean Business and Investment Summit here, the Prime Minister said: "We are using our unique ID system in financial transactions and taxation for this purpose and the results are already visible."

"These steps, coupled with demonetisation of high value notes, has resulted in fomalising a large part of our economy. The number of new tax payers filing income tax returns has more than doubled. Digital transactions have increased by 34 per cent as we march together to a less-cash economy," he said.

The Prime Minister is in Manila to attend the 31st Asean Summit.