Union Finance Minister Arun Jaitley on Wednesday made desperate attempts to defend Prime Minister Narendra Modi, who’s facing considerable embarrassment after it emerged that the 99% demonetised money in circulation was back with the RBI.
Speaking to reporters, Jaitley questioned the critics’ knowledge on black money and its relation with the demonetised currency.
He said, “People with inadequate understanding of how to tackle black money linked note ban with money returned..The objective of demonetisation was that India is predominantly high cash economy therefore that scenario requires to be significantly altered.”
On 8 November, when Modi made the shock announcement on note ban, he had said that the key objective behind this unprecedented move was to end the circulation of black money from the market. He had implied that the a considerable chunk of the demonetised money in circulation was black money.
However, the RBI’s disclosure has punctured his stated objective.
During the demonetisation period more than 200 people had died due note ban related stress. The Modi government had come under scathing attack for behaving like a headless chicken as it changed rules for at least 50 times.