Demonetisation would only affect common man: P Chidambaram

The former Union Minister further said that 86 per cent of the total value of currency notes in circulation was in the denomination of Rs 500 or Rs 1,000.

By: PTI | Chennai | Updated: November 12, 2016 3:14 pm
demonetisation, P Chidambaram, common man, notes demonetisation, currency demonetisation, 500 rupee notes, 1000 rupee notes, bank, banks, atm, atms, india news, indian express Former Union Finance Minister P Chidambaram. (File)

Disputing government’s claim that demonetisation of higher value currency notes would check black money, former Union Finance Minister P Chidambaram on Saturday said it would only affect the common man. The senior Congress leader said people were facing difficulties in purchasing medicines, buying bus and train tickets and paying for auto-rickshaws because most of the notes in circulation were of Rs 500 and Rs 1,000 denominations.

“They (government) say withdrawal of notes that are highly in circulation will not affect the common man. That is quite a funny statement,” he said.

“It is not a step to curb black money… The Centre’s move will only affect the public and that is my view,” he told reporters here.

Chidambaram said that in 2012, the Central Board of Direct Taxes had advised the Centre to avoid issuing Rs 2,000 currency notes, saying it would bring more harm to the public than benefit.

“Ignoring it, the Centre has withdrawn Rs 500 and Rs 1,000 notes that are highly in circulation,” he added.

The former Union Minister further said that 86 per cent of the total value of currency notes in circulation was in the denomination of Rs 500 or Rs 1,000.

Chidambaram said there were currency notes worth about Rs 17 lakh crore in circulation across the country, and according to the RBI, about Rs 400 crore of this was believed to be fake currency.

“Just to destroy Rs 400-crore fake currencies, why the circulation of total Rs 17 lakh crore was needed to be blocked,” he asked.

On criticism by the BJP that Congress Vice-President Rahul Gandhi standing in a queue to exchange notes was just a ‘photo opportunity’, he said, “What can he do? How can a person live with a currency that is invalid? That is why he went to exchange Rs 4,000 (to the bank).”

“I do not know whether the valid notes were exchanged in the houses of the respective ministers. For rest of the people, one has to visit the bank for exchange of notes,” he said.

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  1. N
    N k
    Nov 12, 2016 at 10:52 am
    Apparently this ignoramus was the finance minister of Congress;br/gt;lt;br/gt; What else would you expect India to have but scams of mive scale a la spectrum in his tenure?lt;br/gt;lt;br/gt;Oh poor Rahul cant use 500 1000 rs in nightclubs in Europe? Why not use the currency stash 4m Bofors in swiss banks?lt;br/gt;lt;br/gt;Or maybd if this guy had a Swiss bank account he could lend Rahul some money 4 clubbing
    1. N
      Nov 12, 2016 at 12:48 pm
      First this fellow supports this step in open conference and now criticises again this shows the two faces and true face of congis.
      1. T
        Tamil Selvam
        Nov 12, 2016 at 10:29 pm
        This is best any government has done in India since Independence. Little inconveniencelt;br/gt;now creates a bright future for us and our;br/gt;I notice people with lot of black money and involved in corruption will complain the loudest since they are once losing their ill gotten wealth. lt;br/gt;No gain for the future without little inconvenience now. I am a common man Chidambarma does not represent me or my children. Chidambaram is already a multi milliner with the dummy his son had done with that Singapore company which is already under investigation.
        1. A
          Alok Nath
          Nov 12, 2016 at 12:49 pm
          They have lot of money thats why they are crying, i dont mind standing in queue in banks if it means removing black money, plus we everyday stand in line in bus stops, stations, movie counters, temples wats big deal if we have to stay in line for a bit for good cause. W public keeps crying corruption everyday i support 500% the action of Modi. If it were taken by someone else i would have supported them too.
          1. A
            Nov 12, 2016 at 9:46 pm
            congress leaders like chiddu sonia kapil sibal mms who were involved in 2g scam coal and cwg scams where is the money. when poor peole of india are starving. sonia is the richest women in the world.
            1. J
              Nov 12, 2016 at 12:46 pm
              We can say whether it was a good move only when we see how much money government could gain. If it is not a remarkable gain then it is really a tragedy. Many people have to waste a lot of time, undergo many troubles. Every person loses average of 2 days labour (minimum of Rs. 500, A huge amount for 130 crore people). Business is stand still and there too I think lot of lose. But hope it will do more benefit at the end than lose.
              1. R
                Rock G
                Nov 12, 2016 at 7:46 pm
                Look like he will be making a trip to the ganges to float his currency
                1. N
                  Nov 16, 2016 at 12:41 pm
                  Modi Government tried to stop black money .We have to wait for some time to see the result.but the government failed to do it in a proper manner. They did not know how to do it properly.
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