Central Government on Thursday morning came with a new statement and said that demonetisation of Rs 500 and Rs 1000 would have many benefits. Justifying their decision on the ban of old 1000 and 500 notes, the Government told the Supreme Court that the measure would reduce black money, fake notes being printed in Pakistan and help the poor and middle class.
After the Proclamation had filed in the Apex Court, the Central Government listed out the pros of Demonetisation. It said that the decision would put the economy on a high growth that would create more jobs and make housing in urban areas reasonably priced to the poor.
The government also said that approximately 22.4 lakh pieces of Rs 1,000 notes and 37.5 lakh-Rs 500 notes were in circulation in the 2014-15. The Centre said it had implemented a “multi-prolonged and standardized approach to wiping out black money in the country and promote cashless transactions and Demonetisation is the first step in that.
“The Withdrawal of current high demonetisation bank notes will control funding of terrorists surely. It will eliminate black money, and the poor, and middle-class people who are suffering due to black money will get a benefit.
“The Replacement of old notes by way of deposit or exchange is being carried out in a big way through 1.30 lakh bank branches, 1.5 lakh post offices, one lakh banking correspondents, and 2.01 lakh ATMs. Further, there are 14,43,595 (POS) which are online and the total number of outstanding cards is 2,59,43,784,” said by Government.
The government said, “Due to Demonetisation Poor and middle-class persons will be benefited. For example, considering real estate sector, there is the extreme use of cash due to high cash transactions in the purchase of lands and properties. The property prices get pushed up affectedly. However, this reduces the availability of cheap housing for the poor and middle class.
Digital Payments increased. We found an increase in the digital payments through credit cards, debit cards, internet banking, mobile apps and e-wallets. In the last ten days, there has been nearly 300 percent raise in the online transactions that have made by the cards.”