On November 8, 2016, Prime Minister Narendra Modi had announced demonetisation of Rs 500 and Rs 1,000 notes and issuance of new currency in its place in Rs 500 and RS 2,000 denominations.
The Congress leader added: “It started as an exercise supposedly to curb black money and as a move to make India a cashless economy, but the government kept changing the narrative as none of the objectives stated earlier could be achieved.”
Vallabh said that out of Rs 15.44 lakh crore in old currency, the Modi government projected that about Rs 3-4 lakh crore was black money and hence would not come back to the banking system as deposits.
“The decision was taken based on an assumption with no solid reasoning or research and none of the economic experts were consulted or their advice adhered to,” the Congress leader remarked.
“The RBI ‘gained’ Rs 16,000 crore but ‘spent’ Rs 25,391 crore in printing of new notes,” he remarked.
The Congress leader cited the RBI report and said of the demonetised notes, 99 per cent were returned to the bank. “According to the RBI data, only 0.0013 per cent of the banned notes were found to be Fake Indian Currency Notes’; rest 99.9987 per cent were valid currency notes,” Vallabh said.