1. P Chidambaram on how he would have undertaken demonetisation had he been the FM

P Chidambaram on how he would have undertaken demonetisation had he been the FM

Stating that India can't become a cashless economy by a midnight announcement, Chidambaram on Monday said that had he been the present FM, he would have never undertaken 'demonetisation' exercise like this.

By: | Updated: November 28, 2016 1:24 PM
He also added that government's expectation of 8.1% growth in H2 to achieve 7.6% for FY won't be met. He also added that government’s expectation of 8.1% growth in H2 to achieve 7.6% for FY won’t be met.

Demometisation: Stating that India can’t become a cashless economy by a midnight announcement, Former Finance Minister P Chidambaram on Monday told ET Now that had he been the present FM, he would have never undertaken ‘demonetisation’ exercise like this. “I would have stopped printing Rs 1000 notes, immediately and phased out Rs 500 notes over 2 years. No major economy in the world has undertaken this kind of demonetisation in 50 years.” “I would have introduced a banking cash transaction tax to keep a trail and would have made high value transactions only by cheque, and not cash,” he said. Speaking on the likely course of interest rates, Chidambaram said, “A rate cut by RBI is both desirable and feasible right now and I support it.” “I also hope Urjit Patel won’t be silent if government adventures with RBI’s balance sheet. There is a case for RBI to lower interest rates right now, MPC must decide the quantum. Wonder if there was a full and free discussion in RBI on demonetisation?”

He also added that government’s expectation of 8.1% growth in H2 to achieve 7.6% for FY won’t be met. “Overall GDP growth for FY17 to be between 5-6%,” he said. Attacking the government over demonetisation, Chidambaram claimed that the move will not meet the objectives of curbing corruption, counterfeit currencies and black marketeering as spelt out by Prime Minister Narendra Modi. However, he added that the “only short-term benefits” of it would result in people shifting towards digital transactions in the urban areas.

Yesterday Chidambaram said said had he been the Finance Minister, he would have resigned from the post if the Prime Minister insisted on demonetisation. “Had the Prime Minister told me ‘I have decided to declare as illegal tenders Rs 1,000 and Rs 500 currency notes’, my advice to him would have been not to do it. Don’t take the decision. “I would have given him facts and figures. But, had he still said ‘Sorry, this is my decision and I will do it’, let me tell you quite candidly, I would have resigned,” said the former Union finance minister.

  1. R
    Rajan
    Nov 28, 2016 at 6:47 am
    Chidambaram - Why did you not implemented in your tenure what you now is the correct way ?
    Reply
    1. S
      Shorya gupta
      Nov 29, 2016 at 5:13 pm
      Sir, that is why u are not the finance minister anymore
      Reply
      1. B
        Boomba
        Nov 28, 2016 at 7:45 am
        OH what a shame less die - hard crook ! still thinks of being a FM ???first he should return all the misappropriated money ( by all his -- himself / son / wife and any benami ) at the earliest then talk ... . All these rubbish are being published.. of it. simply disgusting.
        Reply
        1. S
          Shrinivasa Kamath
          Nov 28, 2016 at 9:14 am
          Congress party when in power got many reports made on tackling black money. What were the recommendations? Was there a mention demonitisation anytime? It never attempted demonitisation since it would have affected its own party more than any other.
          Reply
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            ravi
            Nov 28, 2016 at 4:14 pm
            Please don't profess PC. Try and manage your son's illgotten money. You have lost all respect. Had it been some other time people would have listened to you. So pls stop. Thanks ET to publish such reports !!
            Reply
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              Rekha
              Nov 29, 2016 at 1:12 pm
              If banks provide machines for swaping debit/ credit cards free of charges there will be more & more cash less transactions Pl. Appeal the people for cashless transaction by taking this opportunity
              Reply
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                Vijaya Kumar Gandikota
                Nov 29, 2016 at 7:19 am
                Why were you silent when you were FM Chidamabaram jee. Probably you never had the guts to displease your own party members who amed huge wealth during your rule. Now you talk of ifs and buts when a bold step was taken by our PM. Did you have any courage to discuss this issue with your Italian Queen and suggested the measures to curb black money. Please stop talking now and allow Modiji to continue the demonetization process
                Reply
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                  vinay singh
                  Nov 28, 2016 at 5:55 pm
                  bakwaas band karo PC. achhe kaam to kabhi kiye nahi aur ab karne bhi nahi dena.
                  Reply
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                    vishwas
                    Nov 28, 2016 at 6:48 am
                    LOL....
                    Reply
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