Currency ban: MPs ordered to hand in bank statements
NEW DELHI: Indian Prime Minister Narendra Modi has ordered MPs of the ruling Bharatiya Janata Party (BJP) to submit bank statements of all transactions between November 8 and December 31 in January next year.
November 8 is the day when Modi had, in a sudden televised address to the nation, announced the scrapping of currency notes of 500 rupees (R101) and 1000 rupees to curb the menace of black money and stop circulation of fakes notes among militants. The prime minister’s direction came in the wake of allegations by several opposition parties that the BJP had tipped off some of its leaders ahead of the demonetisation of currency notes of higher denominations.
Modi has said that the demonetisation will act as a deterrent against the corrupt and help the country’s economy in the long run, and sought 50 days to ease the cash crunch situation arising out of the move.
Thousands of people demonstrated across India on Monday to protest against the government’s sudden decision to withdraw large-denomination currency from circulation – a move that has caused enormous hardship to millions of people in the country’s predominantly cash-based economy.
But the response to the “day of rage” called by opposition parties was patchy.
Nearly three weeks ago, Modi announced that the 500- and 1000rupee notes would become worthless overnight and would be replaced by new currency in a bid to stamp out corruption and tax evasion.
The surprise decision pulled 86% of the country’s money supply out of circulation, leading to serpentine lines at banks, which often ran short of currency. Former Prime Minister Manmohan Singh has said the move was “legalised plunder of the common people”. But regional leaders said it would help end the practice of the rich to hold stockpiles of undeclared cash.