Over the implementation of the demonetisation policy by the Narendra Modi government and as the last date, for the replacement of the old scrapped currency notes, nears, former Planning Commission vice-chairman Montek Singh Ahluwalia today said that as the black cashes are going to be worthless after December 31, they will get laundered in different ways to avoid getting caught by the government. Ahluwalia claimed that the laundering of the black money is also being done through gold, creating an incentive to import gold, thereby putting pressure on rupee.
In an interview with Karan Thapar for the India Today, Montek Singh Ahluwalia today, discussed regarding the implementation of the demonetisation policy, following which there had been a ban on currency notes of higher denominations. The former vice-chairman of the Planning Commission claimed that the the implementation of the anti-graft policy hadn’t, at all affected the flow of black money in the country.
Criticizing the policy implementation, Ahluwalia said that the time period, till March, expected to replace the old notes with new ones, is too long and will create a problem for the informal sector. He also stressed on the point that if it takes six months to replace the old currencies with new ones, it will lead to wages being not paid and will disrupt the normal living anyways.
Speaking to Karan Thapar at the interview, Montek Singh Ahluwalia claimed, “People should be made free to take out whatever they want from their personal bank account.”
Citing the rise in the circulation of black money in the country, Prime Minister Narendra Modi had initiated the demonetisation policy on November 8, following which there had been a ban on currency notes of the denomination Rs 500 and Rs 1,000. There had been a chaotic situation among the common people since the implementation of the note-ban policy, with people standing on long queues, waiting for hours, outside banks and ATMs to replace their scrapped currency notes.