Govt in desperate situation as note ban deadline approaches: P Chidambaram

"Government had previously announced December 30 as the deadline on banned notes," said Chidambaram, �Why can't we deposit remaining notes until Dec 30 as notified?� he wondered

Govt in desperate situation as note ban deadline approaches: P Chidambaram

Reacting to Finance Minister Arun Jaitley's statement to deposit all banned notes in one go if they exceed Rs 5000, before the December 30 deadline, former Finance Minister P Chidambaram, accused the government of backtracking from its earlier promises. 




He accused that both Prime Minister and Finance Minister have failed to fulfill their earlier promises on the deadline on two occasions. He added government had previously announced December 30 as the deadline on banned notes and asked, “Why can't we deposit remaining notes until Dec 30 as notified?”

He alleged government has no clear stand on monetisation, adding that when the Reserve Bank of India comes with new policy on depositing old notes, it was contradicted by the Finance Minister. 
He said poor and and middle class are leading miserable lives due to cash crunch.

Describing the situation of the citizens, Chidambaram wondered, “Who should citizen believe? Neither RBI nor the Finance Minister has any credibility now,” he added.



Alleging that government has reached a panic situation, Chidambaram accused the government of resorting to desperate measures as the deadline for complete note ban is approaching.

Describing government's monetisation drive as a big catastrophe on the Indian economy, Chidambaram added that  its impact will be observed more in the
fourth quarter than now.

"The situation in the country is not going to normalise before April even if they flood the market with Rs 2000 notes,” said Chidambaram, adding that those who possess black money already  laundered their old notes, while the poor have been suffering silently.

Chidambaram said, government is simply adopting only conventional methods to deal will the problem of black money, which is very complex and beyond its reach. He observed that currently there is absolutely no  machinery available with the government to scrutinise both Jan-Dhan accounts and non-Jan Dhan accounts.