Former RBI governor KC Chakraborty on Thursday said that there was no economic move on monetisation on the government’s move on demonetisation. He added that the move by the government on November 8 cannot be termed demonetisation. Speaking to CNBC-TV 18, Chakraborty said there was no economic basis for the move, whose objective is also questionable.
He added that there was no data to prove what percentage of black money exist in the system. The ex-deputy governor further said that the black money accounts for big percentage in illiquid forms like realty and bullion sectors.
Stressing that banning of entire cache of Rs 500 qnd Rs 1,000 would making little sense, Chakrobarty said the move seemed to have an underlying political rationale.
Since the demonetisation step by the government on November 8 on high value notes of Rs 500 and Rs 1,000, the citizens have been standing in long queues to get their turn to exchange banned notes or deposit their amounts. The Narendra Modi led government has given time till December 30 for the countrymen to deposit their cash. It had also announced that action could be taken against those found to have black money, especially those having undeclared amount of more than Rs 2,50,000.
For last nine days people are trying to get cash. However, most of them continue to try their luck but without success.