Saturday, November 12th, 2016

Demonetisation: Chidambaram says it will only affect common people, not black money

Narada Desk | November 12, 2016 5:24 pm Print
Criticising government’s step second time this week, Chidambaram said facing difficulties since most of the notes in circulation were of Rs 500 and Rs 1,000 denominations
P Chidambaram: Congress leader and former Finance Minister

Congress Leader and Former Union Finance Minister P. Chidambaram said the Central government’s move will not help to curb back money, but will affect common people of the county.

Criticising government’s step second time this week, Chidambaram said facing difficulties since most of the notes in circulation were of Rs 500 and Rs 1,000 denominations, media reports  said.

The Senior Congress leader was quoted by PTI as saying:  “They (government) say withdrawal of notes that are highly in circulation will not affect the common man. That is quite a funny statement.”

“It is not a step to curb black money… The Centre’s move will only affect the public and that is my view,” he added.

According to the former Fin min, the Central Board of Direct Taxes had advised the Centre in 2012 to avoid issuing Rs 2,000 currency notes as it would bring more harm to the public than benefit.

Responding the Union Government’s decision to demonetize high-value currencies earlier, Chidambaram said a similar moves in 1978 failed to curb black money.

Saying the introduction of Rs 2000 notes is a puzzle, the former union minister said: “I don’t understand why Rs 2000 notes have been introduced when Rs 500/1000 have been demonetized.”

Stressing he does not encourage or support unaccounted wealth or income, Chidambaram said there’s a non-monetised economy in the country and you can’t call it black money.

“Bulk of this money is legitimate money and Govt as well as banks should replace the old notes quickly” he said.

Meanwhile, Union Finance Minister Arun Jaitley on Saturday said the government expected some rush during the initial days and it will come down in few days.

Arguing people to cooperate, Finance Minister said this is massive operation to replace 86 pc of currency under circulation and we are monitoring the situation as banks working overtime to help people exchange the old notes.

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