Arun Jaitley defends demonetisation, says it will help curb black money

Zee Media Bureau

New Delhi: Addressing the media for the first time since the demonetisation of notes by Prime Minister Narendra Modi, Finance Minister Arun Jaitley on Wednesday said the aim of the government is to get rid of black money.

Defending act of the government, Jaitley said scrapping the notes was long overdue and that the government was taking concrete steps to curb black money.

In a sudden and major crackdown on black money, Prime Minister Narendra Modi on Wednesday night scrapped Rs 500 and Rs 1,000 banknotes and said the notes would become illegal tenders from last midnight and massively curbed cash withdrawals through ATMs and from bank counters.

Addressing the media, Jaitley said the government has been trying to strengthen the economy of the country since it came to power over two years ago.

Since our Govt has come to power, we have taken a number of measures to embolden our economy: FM Arun Jaitley pic.twitter.com/Z149LLGXAp — ANI (@ANI_news) November 9, 2016

On black money, Jaitley said the government has a number of steps to curb the menace and track 'benami' transactions adding that demonetisaion is a setback to parallel black money economy because a lot of currency operating outside system will now have to get in to banking system.

The government believes that this decision to scrap Rs 500, Rs 1000 notes has been welcomed everywhere; it is major step that will help India's credibility, the finance minister said.

It's is also a huge step towards cashless economy and this one decision will change the course of the way people spend and keep their money, he added.

This one decision will change the course of the way people spend and keep their money: FM Jaitley pic.twitter.com/yAeYjxnL1t — ANI (@ANI_news) November 9, 2016

The sudden move by the government created panic among the common man. However, the government said it was a necessary act but regretted that some inconveniences were inevitable.

There might a little inconvenience in replacement, to minimise that government took decision to give a window of 72 hours to people, Jaitley said.

There might a little inconvenience in replacement, to minimise that Govt took decision to give a window of 72 hours to people: Jaitley pic.twitter.com/ClJPAJuqR6 — ANI (@ANI_news) November 9, 2016

Mr Jaitley also expressed confidence that the move by the government was good for the economy of the country and that even the states would benefit from it.

Long term advantage to the economy are so significant that we would appeal to the people to bear the relative minor inconvenience, he said.

On comparison with the demonetisation of 1978, Jaitley said it cannot be compared as economy was not big then.

There can't be any comparison between demonetisation in 1978 and today because economy wasn't this big then: Arun Jaitley pic.twitter.com/9JdUPlEPTs — ANI (@ANI_news) November 9, 2016

He also assured that no one especially poor will face inconvenience because of this reform.

He also informed that the new Rs 500 and Rs 1000 notes would be available at banks and post offices from tomorrow (Thursday).