Prime Minister Narendra Modi said that demonetisation in 2016 wasn’t a ‘jhatka’ (shock) as people owning black money were warned a year ago. Modi said the same in an interview to news agency ANI today evening at New Delhi.
Modi further defending the demonetisation move said, “We’d warned people a year before note ban saying that if they had any black money, they could deposit it, pay penalties and they would be helped out. However, they thought that Modi too would behave like others so very few people voluntarily came forward.
He said that demonetisation was needed to bring money into the mainstream. He added, “There was a parallel economy running before demonetisation, which had drained the country internally. The currency that used to be kept in sacks has returned to the banking system.”
Modi said that decision to implement demonetisation wasn’t taken overnight and that the process of implementation took a year. He claimed that post note ban, more people have been paying taxes.
On November 8, 2016, in a surprise announcement, sPM Modi banned Rs 500 and Rs 1,000 currency notes overnight.