 "Period of cash crunch over, economic activity is being restored: Arun Jaitley")
New Delhi: The government is absolute clear from day one that it would move against the shadow economy and black money, said Finance Minister Arun Jaitley on Sunday, adding the period of pain and inconveniences post demonetisation is getting over and economic activity is being restored.
In a Facebook post 'Demonetisation – A look back at the last two months', Jaitley said that, “When 86% of a country’s currency constituting 12.2% of its GDP, is squeezed out of the market and sought to be replaced by a new currency, there would obviously be significant consequences of that decision”.
Queues outside the banks have disappeared and the remonetisation has moved ahead, he added.
Reducing cash may not eliminate crime and terrorism but it can inflict serious blow on them, he added.
Implementation of demonetisation carried pain; led to short term criticism and inconveniences as well as drop in economic activity. However, the period of pain and inconveniences is getting over; economic activity is being restored, he said.
More money with banks is bound to bring down the rate of interest, the Finance Minister said.
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