The government says that 88 billion dollars of old note have been deposited in banks since the ban was called, and that new 500 and 2,000-rupee notes are being rushed everyday to banks, where the snaking lines of last week have now substantially decreased.
But it is rural India where people have been hit especially hard. With limited or no access to banks and at a time when farmers are sowing their winter crop, the shortage of cash has the potential to turn into a crisis. The government has announced urgent measures to help farmers, like allocating 21,000 cores to state-lender NABARD to dispense as loans. The government has also indicated that while it expects a contraction of growth for a quarter, it is prepping a big investment push as compensation.
In an emotional speech delivered after his announcement, PM Modi had asked for “just 50 days” to complete his crackdown on black money. “The PM has said wait 50 days, it is a short period, but for the poor and deprived, even 50 days can bring about disastrous effects,” countered Dr Singh in the Rajya Sabha today. He also said that the frequent changes to the new policy, including revising the amounts that people can withdraw from their accounts or ATMs, “reflects very poorly on the PM’s office, the Finance Minister’s office and the Reserve Bank of India.”
Dr Singh’s speech was preceded by sparring between opposition leaders and the Finance Minister, who said that the former PM’s comments should be made once the debate was formally initiated.
(Sourced from agencies, feature image courtesy:oneindia.com)
