Demonetization had severe effects on the economy of the country and the first few months were very difficult for the population, as the usage of Rs 500 and Rs 1000 notes was restricted, and the people were told to convert them into Rs 100, and because of this there were long lines outside of banks and ATMs.
All of this caused a lot of friction among people and was even responsible for violence among the crowds as the people tried to enter the ATM buildings and banks.
The sudden shift in the rules for the currency threatened to break the economy of the country, as it was looking that there weren’t facilities already in place for so many people to exchange and convert their money, and it caused a crisis for people. For example, people were denied admission to hospitals because they didn’t have the right kind of currency with them. The GDP growth also went down because of the decision.
By August 2017, 97%, which is Rs 14 trillion of the demonetized money was deposited to the bank. The steps of the government were heavily criticized by the general public, but it did succeed in achieving its goal.
Highlights of Arun Jaitley's address:
- The party has decided that on November 8, 2017, the BJP will celebrate anti-black money day in the nation. All the top leaders of the BJP and state chiefs will organize events on this theme and highlight the steps we have taken to curb black money in India.
- Whatever black money has been detected in bank accounts or anywhere else will be probed.
- Demonetisation was also a big step in making India a cashless currency. The primary three motives - reduction in the amount of cash transaction, increase in commercial transaction and increase the tax rate in the country have been achieved. Through GST we have got India into a transition phase.
- The probe against black money has not been achieved through baby steps.
- The Congress had adequate opportunity to be in power. I can't recollect a single significant step that they took to curb black money.
- They (Congress) had reconciled to India living with a shadow economy. It is understandable this would never be on the political agenda of the Congress leadership.
- I think the Congress has not understood the concept of demonetization. The ownership of cash is not known; it is an anonymous owner. So when cash gets deposited in banks, what was being laundered earlier, now gets into the law books. So for entry into the lawful system, you are liable to pay tax. Those who had never paid tax in their life were happy with the laundering system.
- Once we have the fundamentals of the subject correct, we will be able to understand the subject better.
- The people who have ruined the nation will now give lectures? Between 2008 and 2011 there has been indiscriminate (money) laundering; there was no money left in the banks. They (Congress) kept fooling people of the nation. We have taken some time to correct their blunders.
- This (anti-black money) is not a one-time campaign. Such campaigns will continue because it is a part of the larger picture.