Congress leader P Chidambaram slammed Prime Minister Narendra Modi’s move of demonetising the high-value currency notes of Rs 500 and Rs 1000 which sucked out almost 86% of the cash from the economy. Chidambaram on Friday said that those giving bribe in old notes will now do so in new currency. According to the former finance minister, the corruption has its own way to peek into the system and it does not make difference if the note is new or old. He also said that the impact of the demonetisation is going to last for 12-18 months and that effects of note-ban will be seen throughout the year 2017. He further added that demonetiation was not done on the recommendation of RBI but vice versa. It was done on the recommendation of government to RBI. He also said that India’s growth story was unnecessarily interrupted by the demonetisation move.
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Earlier also the senior Congress leader termed demonetisation as a “disaster of 2016”, and said that its adverse impact on the country’s economy would be felt in the coming years. He said, “I think it is a terrible mistake. It is done without full information, without understanding the nature of black money …Without fully understanding the implications of withdrawing 2,400 crore notes from circulation… Without preparing the printing of new notes and also without understanding the role played by ATMs.” He also hit out at PM Modi, he said, “for the folly of one person, the Prime Minister, India will suffer a loss of Rs 2.40 lakh crore in the current year. It will not recover next year also and its impact will be felt in few months of 2018-19.”
On November 8 last year, Prime Minister Narendra Modi announced that notes of Rs 1000 and Rs 500 would no longer be legal tender.