PM Modi Says, "Notes Ban Wasn't A Jhatka, Had Warned People A Year Earlier"

PM Modi Says, "Notes Ban Wasn

PM Modi Says, "Notes Ban Wasn't A Jhatka, Had Warned People A Year Earlier" (file image)

New Delhi: The Prime Minister Narendra Modi defended demonetisation in his exclusive interview to news agency ANI. The Prime Minister said that the sudden move to ban high-value currency notes in 2016 was not a "jhatka" (shock) as people with black money were warned a year earlier. 

"We had warned people a year before, that if you have such wealth (black money), you can deposit it, pay penalties and you will be helped out. However, they thought Modi too would behave like others so very few came forward voluntarily," PM Modi said.

PM Modi said that there was a need of demonetization to bring money into the mainstream.

"There was a parallel economy running before notes ban, which had drained the country from the inside... The currency which used to be kept in sacks has returned to the banking system," he said.

Congress, Tax payer, 

The PM said, the demonetization decision wasn't taken overnight. "The process took a year. It was necessary for the economic health of the country. But yes, when a train changes tracks, it slows down a bit," he said.

The Prime Minister said that, post notes ban, more people are paying taxes.

On November 8, 2016, the Prime Minister made a shocking announcement to ban Rs. 500 and Rs. 1,000 notes overnight, leaving 80 per cent of the cash in circulation worthless. The demonetization was aimed at curbing black money and bringing back money into the banking system.

The opposition has been repeated attacking the demonetization, with the Congress saying India had to pay a "huge price" for demonetization.

Earlier this year, PM Modi said notes ban was a "bitter medicine" to give "proper treatment to deep-rooted corruption system" in the country.

(With inputs from ANI)