Arun Jaitley says demonetisation wasn't aimed at confiscating money

Lloyd Doyle
August 30, 2017

Jaitley said "deposits in banks don't legitimise" black money.

Post-demonetisation RBI spent Rs 7,965 crore in 2016-17 on printing new Rs 500 and Rs 2,000 and other denomination notes, more than double the Rs 3,421 crore spent in the previous year.

The Reserve Bank of India's report on demonetisation proves the currency overhaul to be a "positive" step for the economy, said Finance Minister Arun Jaitley here on Wednesday.

Responding to a question posed by a reporter regarding Chidambaram's taunt, Jaitley, while addressing a press conference here, claimed that the former Finance Minister was confusing demonetisation to be an exercise to confiscate money.

Talking about return of 99 percent of junked currency into banking system, Jaitley said that money has now been identified with its owner.

He also reiterated that the currency ban has affected the "capacity to use cash in terror attacks".

"He has no understanding of the objective of demonetization".

The evidence of cash squeeze in Jammu and Kashmir and Chhattisgarh in have slowed down significantly as separatists were unable to offer money to the "stone-thrower".

"Rs 16,000 cr out of demonetised notes of Rs 15,44,000 cr did not come back to RBI". "My next step is going to be to put an end to black money used in elections", said Jaitley.

Jaitley elaborated on the major "objectives" of the demonetisation move that was introduced in November 2016. "For this, it was important to integrate formal and informal economy, reduce the quantum of cash, increase taxpayers, tax base, encourage digitization and give a blow to black money", said Jaitley.

He said that both direct and indirect tax base is getting expanded with the implementation of Goods and Services Tax (GST) as they will be coming through the banking system. Those dealing in cash were compelled to deposit money in banks, thus ending the anonymity of ownership.

The effective currency in circulation today is only 83 per cent with full remonetisation having taken place, it added.

Around 163 companies which were listed on the exchange platforms were suspended from trading, pending submission of proof documents.

The Income-Tax Directorates of Investigation have identified more than 400 benami transactions up to May 23, 2017 and the market value of properties under attachment is more than Rs 600 crore, the statement added.

Other reports by Iphone Fresh

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