Congress leader Shashi Tharoor said the demonetisation of 1000 and 500 rupee notes by the Narendra Modi government “is an ill conceived and mis-implemented one that has created chaos in the country”.
The former Union minister however made it clear that he was not against the principle of demonetisation.
Speaking at a bank officers’ union meet on Saturday, the former UN diplomat said in a country where 98% of transactions takes place through cash, replacing the currency has resulted in a chaotic situation. One of the major drawbacks was not printing the new notes in advance equivalent to the currency withdrawn.
Tharoor also criticised the authorities concerned with lack of planning in printing the same size notes that had been withdrawn to suit existing ATMs.
The cash crunch due to currency replacement has caused ‘immense suffering’ to the common man and affected various sectors, including micro enterprises that contribute nearly 45% to the GDP, the Congress MP from Thiruvananthapuram said.
One major fallout of the currency replacement was that foreign investors had withdrawn billions of dollars during post-demonetisation, he said.
He also questioned Modi’s claim that demonetisation would end black money, saying “the source of black money generation will remain. It will be generated in new notes also,” he said.