Just note replacement, not demonetisation: Chidambaram

RSTV Bureau

Criticising the government’s demonetisation move, former finance Minister P Chidambaram termed the decision to replace 500 and 100 0 rupee notes as an ‘absurd ‘decision.

In an exclusive interview given to Rajya Sabha TV, the senior Congress leader said that the idea to remove high denomination notes and introduce a new 2000 rupee note as ‘Ill-conceived idea.’

“This not demonetisation…  simply exchange of old notes,” said the Former Finance Minister.

Saying that he is opposed to demonetisation, he said no major nation demonetised in 50 years.

“Demonetisation can’t fight corruption… Use tested methods to fight black money,” said Chidambaram

Here are the highlights of the interview.

  • Demonetisation idea was proposed in 2013, Raghuram Rajan rejected the idea
  • Farm sector severely affected by governments move
  • All village markets shut down – Industrial hubs have come to a standstill
  • Crores of people standing in queue – There will layoffs, retrenchments
  • Government didn’t think of consequences
  • Only 3% of currency demonetised in 1978
  • Govt made honest people dishonest
  • RBI must balance demand, supple of currency
  • No law to extinguish currency
  • NDA opposed phasing out of old notes
  • Real estate, jewellery, trade fuel black money