Bblack Money Has Lost Anonymity, Will Never Come Back Into The System: PM

New Delhi: India's demonetisation decision has bamboozled the best economists around the world but 1.25 billion citizens have welcomed the move wholeheartedly, Prime Minister Narendra Modi told India Today magazine in an exclusive interview, as he defended his decision to abolish 86 per cent of the country's cash overnight.

While critics have found fault with the government's preparedness in implementing the November 8 decision, the PM said he was well aware of the magnitude and complexity of the challenge.

'It is no small thing that no significant incident of unrest has taken place in the country,' he told India Today Group Editorial Director Raj Chengappa.
Opposition parties, including the Congress, have called the decision a 'massive scam' and a 'political move' while they held protests demanding the government retract the step.

Opposition parties, including the Congress, have called the decision a 'massive scam' and a 'political move' while they held protests demanding the government retract the step.

'At the same time, as with every other process, there is always room for improvement, and I believe that we can, and must, always improve.'

The abolition of high-value bank notes aimed at constricting the nation's shadow economy has also hit millions of legitimate businesses and millions of people who lack bank accounts and use cash to pay for everything from groceries to hospital stays to land purchases.

But Modi said demonetisation has forced black money out into the open, whomsoever it may belong to - corrupt politicians, bureaucrats, businessmen or professionals.

'Holders of black money may hide behind the bank accounts of others, but unlike cash holdings, they can be traced. In this game of hide and seek, they have a few days to hide, but the government has the time, mechanisms and, most importantly, the will to seek them out,' he warned.
'Demonetisation, on the other hand, is an unprecedented step to confiscate the loot of the corrupt.'

'Demonetisation, on the other hand, is an unprecedented step to confiscate the loot of the corrupt.'

The Prime Minister pointed out that eminent economists such as James Henry, Prof Kenneth Rogoff and Prof Larry Summers have been advocates of demonetisation.

'In India, too, demonetisation has been recommended since the 1970s. The Wanchoo Committee, headed by a retired CJI and with leading economists and chartered accountants as members, had in 1971 recommended the demonetisation of 85 per cent of the currency, comprising Rs 10 and Rs 100 notes,' he said.

'People across the political spectrum have since called for its implementation, ranging from then Congress CM Giani Zail Singh in the National Development Council to then CPI(M) MP Jyotirmoy Basu in Parliament.

'What we have done now is broadly in accordance with the recommendations of that committee.'

'If anything, India is 40 years late in this decision of demonetisation, Modi said.

'It would seem a matter of common sense to understand that if India's economy was weak, this decision could not have been made,' he added.

'It was consciously taken when the economy is in good shape, as such a sharp correction could have only been made then to fortify its foundations and give it a further boost.'

Many private indicators have signalled that India's $2 trillion economy will be hurt by the currency switch.

Opposition parties, including the Congress, have called the decision a 'massive scam' and a 'political move' while they held protests demanding the government retract the step.

(Mail Today)