Period of inconveniences and pain over, says Jaitley
ALL IS WELL Finance minister slams opposition for ‘black money-friendly’ status quo BLACK MONEY CLEAN-UP
NEW DELHI: India’s economy is getting back to normal two months after the scrapping of high-value banknotes, finance minister Arun Jaitley said on Sunday, attacking opposition parties for siding with what he called a “black money-friendly” status quo.
In a Facebook post, Jaitley said a surge in low-cost deposits had enabled banks to “lend for growth” that would bring down interest rates.
“The period of pain and inconveniences is getting over….there was no social unrest while implementing such a major decision,” he said. “Lakhs of crores, which were floating in the market as loose currency have now entered the banking system.”
Jaitley said the long-term gains of the move would outweigh the pain when the exercise was being implemented. “Drop in economic activity on account of the currency squeeze during the remonetisation period would have a transient impact on the economy,” he said.
The scrapping of `500 and `1,000 banknotes — which made up 86% of India’s economy by value — saw a nationwide cash crunch and millions of people line up outside banks and ATMs to deposit, exchange or withdraw money. A 50-day window to turn in old notes expired on December 30.
“The Indian normal has been to undertake transactions partly in cash and partly in cheque. Tax evasion has been considered as neither unethical nor immoral. It was just a way of life. The Prime Minister’s decision is intended to create a new normal,” Jaitley said.
The move came under fire after almost the entire amount that was demonetised came back into the system, leaving many wondering about the effectiveness of the scheme. However, Jaitley said that black money did not change its colour merely by getting deposited in the bank.
His comments come a month before assembly polls in five states — including Punjab and Uttar Pradesh — where demonetisation is expected to be a top issue.
Blaming the Opposition for disrupting the winter session of Parliament, he said, “The Prime Minister was thinking of the next generation while Rahul Gandhi was only looking at how to disrupt the next session of Parliament.”
worth new notes have been seized
seized
worth jewellery search carried out by taxmen notices issued referred to the CBI and Enforcement Directorate
back in the banking system after demonetisation
individuals and firms made large deposits totalling a staggering `7 lakh crore in old notes
deposited by individuals
deposited in Jan Dhan accounts post demonetisation