Former Union Minister Shashi Tharoor today termed demonetisation as an ‘ill-conceived and mis-implemented step’ that has created chaos in the country.’ He made it clear he was not against the principle of demonetisation, but that Prime Minister Narendra Modi’s currency replacement exercise “is an ill conceived and mis implemented one that has created chaos in the country.”
One of the major drawbacks was not printing new notes in advance equivalent to the currency withdrawn, he said, inaugurating a bank officers union meeting here. India being a country where 98 per cent of transactions takes place through cash, replacing the currency has resulted in a chaotic situation, the former UN diplomat said.
Tharoor also criticised the authorities concerned with lack of planning in printing the same size notes that had been withdrawn to suit existing ATMs. The cash crunch due to currency replacement has caused ‘immense suffering’ to the common man and affected various sectors, including micro enterprises that contribute nearly 45 per cent to the GDP, the Congress MP from Thiruvananthapuram said.
One major fallout of the currency replacement was that foreign investors had withdrawn billions of dollars during post demonetisation, he said. He also questioned Modi’s claim that demonetisation would end black money, saying “the source of black money generation will remain. It will be generated in new notes also,” he said.