Congress alleges Rs 2000 note ban 'royal welcome' to keepers of black money

The Congress on Tuesday accused the government of facilitating those hoarding black money with the move to withdraw Rs 2000 currency notes and demanded a white paper on what it alleged was the greatest organised loot in independent IndiaCongress spokesperson Gaurav Vallabh claimed the unorganised sector will be under stress once again after a gap of 65 years and six crore MSMEs and 11 crore farmers will have to stand in line for exchanging a few Rs 2000 notes after the sudden announcementHe said as on March 31 2023 there were a total of 181 crore Rs 2000 currency notes in circulation totaling Rs 362 lakh croreThe majority of this Rs 362 lakh crore is with the keepers of black money Now to exchange Rs 2000 notes no identity forms or proof will be required by banks So a royal welcome is being given to keepers of black money to exchange their Rs 2000 denomination notes by the Modi government Vallabh allegedThe decision will impact the economy which had just started showing signs of minor recovery after the pandemic as small businesses and traders will be affected due to this note ban the opposition party allegedWe want to ask the government that on the 8th anniversary of noteban who were the people who had suggested the introduction of Rs 2000 notes in the first place and why these notes were brought he saidWe demand a white paper on why Rs 2000 notes were introduced and who all were saying that all black money will finish Why was the decision to take back 2000 notes taken We demand a composite white paper on this biggest loot in independent India he saidAlso readArvind Kejriwal meets Mamata to garner support for fight against Central ordinanceThe Congress leader claimed bank credit growth will have an adverse impact as people will stand in long queues in banks to exchange their notesAssuming that a person will come for the exchange of five Rs 2000 notes banks have to perform around 36 crore transactions in the next four months If a transaction takes about four minutes to complete it will take 144 crore minutes 24 crore hours of banking hours just to exchange Rs 2000 notes in the next four months he saidThis will harm the growth in credit as many bank branches will be busy in this exchange only in the next 4 months Resulting in slow or no new job creation in the economy he claimedVallabh also said the discretionary consumer demand will also fall when people will be busy exchanging Rs 2000 notes and especially for products like entertainment highend apparel luxury cars etc resulting in a low GST collection from these economic activities at least in the next four monthsThat will hurt social sector spending by the government he saidHe claimed that there will be a fall in the credibility of the currency as it will be affected due to such minidemonetisationIn the long term it affects the credibility and acceptability of our currencyOrdinary citizens will be impacted indirectly via rising unemployment and loss of income They continue to be impacted by daytoday corruption the Congress leader saidThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever