News

Demonetization – a cruel attack
on the people :  BEFI

2018-11-08

 

Chennai,November 8 : Statement issued by C P Krishnan, General Secretary, BEFI-Tamilnadu on November 8  says, Two years ago this day demonetization was implemented. The people were told that the goal of this exercise was to eradicate black money, corruption, fake currency and money to terrorists. The Prime Minister of our Nation said on 13th Nov 2016“I have asked the country for just 50 days. If after December 30, there are shortcomings in my work or there are mistakes or a bad intention found in my work, I will be prepared for the punishment that the country decides for me” (Hindustan Times). He further added "I am doing this for the poor, honest people for those who are working hard to survive. So that they can get their own home, their children get good education and so that their parents get care” (India TV News).

It was argued by the Government spokespersons that about Rs.5 lakh crores of rupees out of the demonetized currency of Rs.15.44 lakh crores would not come back to circulation and to that extent the black money would be curbed. But in reality, Reserve Bank of India itself had to openly admit that 99.3% of the demonetized currency i.e. Rs.15.33 lakh crores had come back. The remaining Rs.11000 crores that did not come back was mainly due to the money stuck up in Nepal, Bhutan, money lying in the form of demonetized currency in Courts and with the ordinary people who had no opportunity to bring it to the Banks within the stipulated time etc. Then where is the black money? What happened to the prediction of the Government that about Rs.5 lakh crores would be held back?

Black money was not curbed. Rather there is no tangible action against 1.48 lakh account holders who deposited more than Rs.80 lakhs demonetized currency each to the extent of Rs.4.89 lakh crores into the banks. Even today there are fake currencies in the newly introduced Rs.2000 notes. The corruption is rampant and there are corruption charges against even high level CBI officers. The Government has not submitted any evidence that the money supply to the terrorists has been curbed due to demonetization.

But the people had to pay a heavy price for that.

? Crores of people were made to stand in the queue for hours together for 50 days

? People had to suffer due to shortage of currency for more than five months

? More than 100 people and 12 bank employees died

? Lakhs of jobs have been lost

? Small, Medium and Micro Enterprises have been badly hit

? The Economic growth was affected and the GDP was reduced by about 2.5%

? The revenue of RBI was reduced by about Rs.31000 crores

? The cost of printing new notes exceeded Rs.8000 crores

? The Banks had to incur about Rs.5000 crores for extra work, recalibration of ATMs

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? The Banks had to face loss of business, recovery of loans etc.

? People were pushed towards digitization which only helped Inland and Foreign corporates

? The Bank employees and officers who burnt midnight oil in this exercise were not honorably treated

 

It is evident that demonetization is a thorough failure. It has led only to erosion of the income of the poor and the middle class to the benefit of the corporates. Till today, education, health or housing remains beyond the reach of the poor. The promise of the Prime Minister is kept unfulfilled. Ultimately the exercise of demonetization has turned out to be a cruel attack on the people.

We demand that

? The Government should openly accept that demonetization is a failure

? The Government should compensate the families for loss of lives due to demonetization

? The Government should compensate the Banks and RBI for the expenses additionally incurred

? The Government should additionally create job opportunities to compensate the loss

? The Government should come out with a white paper on the ill effects of demonetization and measures to rectify them

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