Four years of demonetisation: PM Narendra Modi says it helped reduce black money, improved transparency

PM Narendra Modi said that demonetisation increased tax compliance and formalization and gave a boost to transparency.

New Delhi: On the fourth anniversary of the announcement of demonetisation, PM Narendra Modi on Sunday (November 8, 2020) hailed the move and said that it helped reduce black money and improved transparency.

PM Narendra Modi took to Twitter and wrote, "Demonetisation has helped reduce black money, increase tax compliance and formalization and given a boost to transparency." 

He added that these outcomes have been greatly beneficial towards national progress. 

The Bharatiya Janata Party stated that in 2016-17, UPI saw transactions worth Rs 6,952 crore while it increased to Rs 21 lakh crore in 2019-20.

The national party claimed that the corporate taxpayers' returns in 2018-19 were 35% higher than the number of returns in 2013-14.

"During 2016-17, 8.03 lakh returns were filed by corporate taxpayers; this increased to 9.42 lakh in 2017-18. Operation clean money was launched after demonetisation. Self-assessment tax of more than Rs 13,000 crore was paid by targeted non-filers," said BJP.

BJP said that the real estate sector had become a very easy way for black money transactions and post-demonetisation, the real estate sector is now more transparent, organised, reliable and favorable to buyers.

"India's tax/GDP ratio drastically improved after demonetisation," said BJP.

Earlier on November 8 in 2016, Prime Minister Modi had announced to ban all currency notes of higher denomination of Rs 500 and Rs 1,000 from midnight.