The secret to ban on currency notes of Rs 500 and Rs 1000 by Prime Minister Narendra Modi has now revealed. Reports said that 50% currency notes of the high denomination were missing from the market. And, when he had got the information about missing currency, decided to carry out a surgical strike against the black money and hoarders.
Centre Minister Meghwal reveals the secret behind the reason to ban on currency notes of Rs 500 and Rs 1000
Therefore, PM Modi had directed to officials to conduct a highly secret probe on the currency of the nation. Union Minister of State for Finance and Corporate Affairs, Arjun Meghwal has revealed that the government in the report found a huge quantity of higher denomination of the currency was being circulated in the black money. According to Meghwal, out of Rs 14 Lakh crore, half of the money Rs 7lakh crore were not in circulation.
The report brought to light how the black money was affecting the nation’s economy at macro level said while giving an interview to a media person on Monday.
Black money was circulated in the through cash transfer of higher denomination of Rs 500 and Rs 1000 and a huge part of it were in the hands of gold merchants, real estate agents, and hawala. On the other hand, banks were not able to get the huge money and became an obstacle for the growth of the country.
Government suspected a huge part of the money were in the hands of hoarders
No one paid any tax on this amount and neither was it counted in the Gross Domestic Product (GDP) of the country. With the secret planning, the government had decided to bring back 7lakh crore the money which was hidden by hoarders in the black market.
Demonetisation was also a part of that planning which was announced by PM Modi on November 8 to the nation. The government wanted to convert Rs 7trillion into white money. Till date, Rs 7 lakh crore in old currency has been deposited in several banks throughout the country.
The government is even expecting that the remaining money approx Rs 3-4 lakh crore will now be extorted through taxes and deposited in government funds. However, there are chances of nearly Rs 3-4 lakh crore in a banned currency of Rs 500 and Rs 1000 may not be deposited in any bank so far. The currency which will not be exchanged till March 31, 2017, will be adjusted to manage with the losses in the next budget.
