Can deposit as much cash as you want in bank, no immunity for black money: Govt | india-news | Hindustan Times
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Can deposit as much cash as you want in bank, no immunity for black money: Govt

People can deposit as much cash as they want in banks to get new notes but shouldn’t take it as an amnesty scheme for undisclosed income, finance minister Arun Jaitley warned on Wednesday following a government withdrawal of high-value banknotes.

india Updated: Nov 09, 2016 13:42 IST
Union finance minister Arun Jaitley leaves after addressing the media after a meeting at North Block in New Delhi.
Union finance minister Arun Jaitley leaves after addressing the media after a meeting at North Block in New Delhi.(PTI)

People can deposit as much cash as they want in banks to get new notes but shouldn’t take it as an amnesty scheme for undisclosed income, finance minister Arun Jaitley warned on Wednesday following a government withdrawal of high-value banknotes.

Speaking to public broadcaster Doordarshan, Jaitley said the law will take its course if the deposited cash is found illegal but assured families and ordinary citizens that they didn’t have anything to worry about.

“Black money isn’t anyone’s basic right,” Jaitley said.

Read | Rs 14 lakh crore, 22 billion notes junked: What it means for black money

The minister’s comments came a day after the government put out of circulation notes of denomination Rs 1,000 and Rs 500 in a dramatic bid to stamp out corruption and drain illicit cash from the economy.

Prime Minister Narendra Modi had earlier appealed to people to disclose their unaccounted money till September 30 but had also indicated strong steps to unearth black money if people don’t comply. “don’t blame me for any harsh steps,” Modi had said on his radio show, Mann ki baat.

The finance minister assured the ordinary citizen and said the “bold” move will free India of corruption and boost the economy.

Read | Rs 1000 and 500 notes become history in Modi’s war on black money

“Families shouldn’t worry. They should go and deposit their money in the bank. Maybe there will some issues in the first few weeks but everything will be smooth after that,” he said.

The government’s move has sparked panic across the nation with widespread confusion and long queues at banks and automatic teller machines till late on Tuesday. Under the new currency regime, ATMs will start dispensing new Rs 500 and Rs 2,000 notes from Thursday and people can deposit the older Rs 1,000 and Rs 500 notes in the bank.

Jaitley praised the scheme, saying the currency shake-up will weed out corruption, banking deposits will rise and have a positive impact on tax collection.

Read | Rs 500, Rs 1000 notes scrapped: 25 things RBI wants you to know

“Every state will benefit from the state. When countries develop, cash shrinks and digital modes of transactions expand. It’s good that India is going in this direction.”

Jaitley also said electioneering – a sector where large sums of cash often allegedly fund political parties -- will become more clean.

“Political funding will become visible and legitimate. It is a bold step to change the nature of the nation.”