Law and IT minister Ravi Shankar Prasad says RBI behind demonetisation

Rs 500 and Rs 1000 currency notes scrapped on recommendations of RBI says law minister Ravi Shankar Prasad.
Ravi Shankar Prasad : Law and Justice Minister

Ravi Shankar Prasad said the decision by the government to scrap Rs 500 and Rs 1000 currency notes on November 9 was taken on the recommendation of the RBI. Law and IT minister said that the government decided that notes of Rs 500 and Rs 1000 will not be a legal tender after the Reserve Bank of India using its authority scrapped circulation of old Rs 500 and Rs 1000 notes. Speaking at an event of PHD Chamber of Commerce and Industry, the minister listed out steps taken by the Narendra Modi government to deal with menace of black money.

The government re-negotiated double taxation treaties with Mauritius and Cyprus, and bankruptcy code was brought in. India also entered into an agreement with the US under FATCA.

He claimed that through economic reforms, this government has saved Rs 36,000 crore by digitalising economic activities. These activities, according to him, are payment of subsidies and MGNREGA wages through direct cash benefit facilities on to the accounts of intended beneficiaries using Aadhaar card.