It’s a setback to parallel black money economy: Arun Jaitley on scrapping Rs 500/1000 notes

There is a sense of satisfaction among honest tax payers to what is happening, said Arun Jaitley.

By: Express Web Desk | New Delhi | Updated: November 9, 2016 5:35 pm
arun jaitley, black money There is a sense of satisfaction among honest tax payers to what is happening, said Arun Jaitley

Calling it a major step to build India’s credibility, Finance Minister Arun Jaitley on Wednesday said the decision to scarp Rs 500 and Rs 1000 notes will be a setback to parallel black money economy because “a lot of currency operating outside system will now have to get in to banking system”.

Jaitley said the decision has been welcomed everywhere and “it will change the course of the way people spend and keep their money”. He added that the government, after coming to power in 2014, has taken a number steps to embolden the economy and curb the menace of black money and “the new step is also of significant advantage.”

The minister said the latest decision is aimed to make India a cashless economy. “It doesn’t merely nudge the economy in that direction (cashless economy), but significantly pushes it,” said Jaitley adding that the will benefit states. He also said that the government’s decision has given a sense of satisfaction among honest tax payers.

Responding to a question of inconvenience caused to the people by sudden scrapping of the notes, Jaitley said, “Long term advantage to the economy are so significant that we would appeal to the people to bear the relative minor inconvenience for the short period of time and we will try to minimize those inconvenience.”

Reacting to Congress’s claim that such a move did not help in curbing the menace of black money in the past, Jaitley said, “There can’t be any comparison between demonetisation in 1978 and today because economy wasn’t this big then.

Jaitley also dismissed charges that the decision was taken in view of the Assembly elections in UP and Punjab. “There is no co-relation of this decision to that of elections but if this makes election costs cheap, it is good,” said Jaitley.

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  1. C
    Nov 9, 2016 at 4:48 pm
    The government has taken a bold decision to curb black money and counterfeit notes. The governments sudden move also may be aimed to get political advantage before the embly elections as parties spend a lot of accounted money for buying votes.
    1. A
      Aniket Meshram
      Nov 9, 2016 at 4:08 pm
      The idea is good but really faced lots of problems today. I could not eat enough as restaurants were not accepting Rs 500 note, could not book a train ticket (W/L ticket), walked 6 kms as auto driver refused to take Rs 500 note. Hope, tomorrow when I go to ATM, I find Rs 100 notes there without much difficulty.
      1. A
        ashok s
        Nov 9, 2016 at 12:25 pm
        Definetly their is political concenus in this act . as no big wig is worried about it. Political parties are paying their party workers in cash , builders are still telling their customers come in business is at usual, jewellers are doing their business at usual. So I ask who got infected or effected , no more then common man.
        1. D
          Nov 9, 2016 at 12:41 pm
          All antinational parties have criticized the govt for taking a bold and brilliant decision. India definitely deserves a better opposition. Khujliwal who claims that he is the most honest peeson in the world has been exposed mode than anybody. One of his supporters who had voted for him today said at a shop-kya madarch*d insaan nikla ye.
          1. B
            Barb Dewyre
            Nov 9, 2016 at 12:04 pm
            While I laud this effort to mop up the domestic black money, even Modi had admitted during his 2014 speeches that the bulk of the black money is stashed abroad. Certain foreign banks have given the list of account holders to us. Why are these not being made public and/or why is there no visible action on these people?
            1. B
              Nov 9, 2016 at 1:24 pm
              The best PM so far. Well done.
              1. K
                K Chatterjee
                Nov 9, 2016 at 4:13 pm
                With the introduction of ₹2000/- note, the black economy has got a shot in the arm. Now, it will be easier to generate, transport and store black money !
                1. M
                  Nov 9, 2016 at 1:37 pm
                  Arun Jaitley. You will be expecting parallel black money economy with the Rs 2000/ in future instead of silly hundreds and tens. AND then the w Hindustan will know about real face of fekunomics govt in 21st century.
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