One year on: Suresh Prabhu says talk about deaths due to demonetisation is a misconception
The Union Minister also said that demonitisation has bridled terror funding and broken the back of terrorists.jaipur Updated: Nov 08, 2017 20:26 IST
The benefits of demonetisation will soon be visible as interest rates on loans come down and banks find it easier to disburse loans to small businesses, Union commerce and industry minister Suresh Prabhu said on Wednesday.
Prabhu, who was addressing a press conference in Jaipur as part of BJP’s campaign to mark the first anniversary of demonetisation as ‘anti-black money day’, said, “Demonitisation has bridled terror funding and broken the back of terrorists.”
Adding demonetisation was also crucial in fighting black money. “The short-term benefits are that property prices have become more affordable for the common man and more money is flowing into mutual funds and reduction in corporate bond interest rates has benefitted businessmen.”
“One year after demonetisation a large number of suspicious transactions were under the scanner, but it’s an ongoing process and it will take time to unearth black money in a 2.5 trillion dollar economy like India. Another important development is that 56 lakh more people have filed income tax returns after demonetisation, and about Rs 30,000 crore funds have come to government’s kitty due to operation clean money. These funds will be used for welfare,” said the minister.
He also said that earlier people used to hoard cash and it was not being put to use for the society but post demonetisation Rs 15.88 lakh crore has returned to the formal economy and this will benefit society.
“The talk about deaths due to demonetisation is a misconception. The common man had full confidence in (Narendra) Modi ji and no one complained while standing in bank queues after demonetization,” Prabhu said.
He said that action was being taken against three lakh shell companies and new provisions are being made to fight black money.
On former RBI governor Raghuram Rajan’s statement that short-term costs of demonetisation will outweigh long-term gains, Prabhu said, “I am happy to note that Rajan agrees about the long-term gains, and I have already cited the short-term gains instead of costs.”
Replying to a query on Opposition parties observing the day as ‘black day’, Prabhu said that BJP was observing it as anti-black money day and so those who are opposed to BJP are in favour of black money.