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Demonetisation made dealing in black money very difficult: Arun Jaitley

Demonetisation had scrapped 86 per cent of the currency in circulation, leading to cash crunch across the country, which gradually eased with remonetisation.

Reported by: PTI, New Delhi [ Published on: November 08, 2017 21:06 IST ]
File pic of Arun Jaitley
File pic of Arun Jaitley

Union Finance Minister Arun Jaitley today said demonetisation may not have completely eliminated black money, but dealing in unaccounted cash has become very difficult.

He further said property prices have moderated and digital payments are increasing following the government's decision to scrap old Rs 500/1000 notes with effect from November 9, 2016.

Jaitley said that he would not say that black money "has completely gone out" of the system but it is certain that transacting in unaccounted cash has become very difficult.

"This message has gone out loud and clear," the minister said.

Following the note ban, property prices have declined by 20-30 per cent in Delhi and Mumbai, which were witnessing an artificial boom, Jaitley said, adding "Why should properties in Delhi and Mumbai be more expensive than in New York and London."

Now properties are being sold at "realistic prices", he said.

Jaitley added that demonetisation has squeezed terror financing, increased digital transactions and reduced high denomination currency in the system.

Jaitley said Prime Minister Narendra Modi by one decision has brought all these important issues to the centrestage of the country's economic agenda. 

"This is a long drawn process. But I think the beginning is meaningful," he added.

Demonetisation had scrapped 86 per cent of the currency in circulation, leading to cash crunch across the country, which gradually eased with remonetisation.

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