Free Press Journal

Demonetisation was a calculative step: Goyal


Mumbai : Prime Minister Narendra Modi’s decision of demonetising Rs 500 and Rs 1,000 currency notes was not taken overnight, but it was a calculative step taken at the right time, said Piyush Goyal, Union Power Minister during an address on Saturday at the Bombay Stock Exchange (BSE).

Goyal said that there was an 18 percent rise in the circulation of currency notes of Rs 500 and Rs 1,000 in the last nine years, which had become a matter of concern for the government.

“In 2007, the total value of higher denominations of Rs 500 and Rs 1,000 consisted of 68 percent and it rose to 86 percent in a period of nine years. It was during this period that several scams had surfaced in India, which includes the 2G spectrum scam and Coal gate scam,”said Goyal.

Goyal added that the reports of fake currency also kept increasing during this period. He also spoke about various actions taken by Modi, which were also a stepping stone towards a corruption-free country.

“For instance, a new law to prohibit illegal ‘benami transactions’ and the government’s plan to make new amendments to the Income Tax Act which would help to take action against those who made unaccounted cash deposits of scrapped currency notes of Rs 500 and Rs 1000 were few steps taken by the government to curb black money,” said Goyal.

Goyal also answered the questions on black money, which were raised by several stockbrokers and other businesspersons who participated in the event.

 When asked about when the government would take action against politicians who accumulated black money, Goyal answered by saying that the government could only be transparent and make a cleaner system which would slowly help in curbing black money.