The black money stacked in beds and pillows has come back to the banking system, thanks to demonetisation, Vice President Venkaiah Naidu said today. The government had scrapped about 86 per cent of the high value currency notes in form of Rs 500 and Rs 1,000 in November last year, leading to cash crunch for several months. Almost 99 per cent of the demonetised currency was returned into the banking system, as per the Reserve Bank. “Now also banks again have money in India because all the money that was there – some that was there in beds and also pillows, bathrooms – has come back to banks. There is a debate going on, I don’t want to get into that political debate because I am not in politics now,” said the Vice-President.
He was speaking at a conference on small and medium enterprises (SMEs) organised by WASME here. Naidu further said he has retired from politics, but not retired from public life. “The money has come back. Some people are raising questions as to what is the purpose of the so-called demonetisation. “As an ordinary citizen of the country I understand that was the purpose. The money has come back to banks with address. How much is official, how much is unofficial… that will be decided by the Reserve Bank,” he said.
The Vice-President stressed that banks need to take care of the MSME sector, which is giving maximum employment. Naidu emphasised that SME development needs to be centred around sustainability.
He added that alleviation of poverty while simultaneously creating employment and wealth by following the principle of inclusive growth was the only way towards a peaceful world. In the context of sustainable development goals (SDGs), the development of SME sector must be primary development agenda of national governments “so as to address the critical issues around economic growth, job creation, social stability, and environmental protection.”