Rs 500, Rs 1000 invalid: Political posturing, limited effect, says CPM

The CPI too said the move will add to hardships faced by vast sections particularly traders, vendors and small wage earners.

By: Express News Service | New Delhi | Updated: November 10, 2016 2:31 am
rs 500 ban, rs 1000 ban, currency ban, black money, narendra modi, CPM, economy hit, indian express news, india news, latest news People queue outside a bank ATM in a rush to get Rs 100 notes.

The Left parties said the government’s decision to demonetise Rs 500 and Rs 1000 notes will have a “limited effect” and not “yield the desired result” of unearthing black money. The CPM said the move is more like “political posturing” and argued it will burden daily wagers, fishermen, small businesses, traders and vendors.

“The claim that demonetisation will check black money, fake currency, corruption and terrorism lacks substance. By the Prime Minister’s own admission, the bulk of black money generation and storage is in off-shore accounts in foreign currency. Counterfeit currency can be generated for any denomination. The announcement of a new Rs 2,000 note along with another Rs 500 note does not in any way prevent future possible counterfeit circulation. It’s an established fact that terrorist funds flow through electronic transfers and not through currency transactions,” the CPM politburo said.

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“Further, transactions through plastic will continue as usual. In effect what this would result in is a total disruption of the payments and settlements that are part of daily life of our economy. It will burden the vast mass of our people from daily wage labourers, fishermen, small businesses, traders and vendors selling at the door step,” it said.

The CPI too said the move will add to hardships faced by vast sections particularly traders, vendors and small wage earners. “Everybody knows that the huge amount of the black money is outside the country and Prime Minister himself had promised that he would bring back the huge amount of black money deposited in foreign banks (amounting almost to Rs 80 lakh crore) and each bank account holder in the country can get Rs 15 lakh from the unearthed money. This later his supporters termed as a jumla,” the CPI central secretariat said.

“The real intention of the government can be to divert attention from the real problem of black money as it is not ready to share information made available through Panama leak and Swiss banks… For unearthing black money and bringing an end to the parallel economy based on it, it has to take action against the real culprits that it will not take as they had helped it to capture power,” the party said.