Amid long queues across the country, banks and ATMs running out of cash and political allegations over demonetisation of Rs 500/1,000 notes, Finance Minister Arun Jaitley held a sudden press conference on Saturday to soothe frayed nerves and assure people of the long-term advantages of this “massive operation”, which will give birth to a “new, cashless economy''.
“There were technology limitations because of the secrecy (of this operation), which is why two lakh ATM machines were not recalibrated. It will take some days to get these recalibrated, approximately two weeks,” the Finance Minister said, adding that currency worth Rs 14 lakh crore needs to be exchanged so “people will go exchange and there are bound to be queues'', insisting that the queues are “orderly''.
Urging people not to “rush” to banks and ATMs in the first three-four days as deposits/withdrawals will be done till December 31, the Finance Minister appealed to people to “rely more on electronic mode, payment gateways, cards etc. Life will be simple,” he said.
Terming allegations made by Aam Aadmi Party and Congress as “irresponsible”, Jaitley said: “We are trying to clean politics and some people are uncomfortable with this. Congress today said why should we stand in queue as it is our money, but have you paid taxes to the people on your money? That is what we are trying to ensure, and we have the right to do so.”
Lashing out at Delhi Chief Minister Arvind Kejriwal, who accused the Narendra Modi government of “selective” leaks leading to a spike in some bank deposits in the July-September quarter, Jaitley said: “I have seen the RBI deposit data. In one year, in only one month there was spike -- in September 2016, And the clear reason for that is the release of the Seventh Pay Commission arrears, and that spike too is marginal.”
SBI plays big role
The Finance Minister said State Bank of India (SBI) and its affiliates, which handle 20.25 per cent of the total banking transactions in India, have handled transactions worth 2.28 crore in two-and-a-half days by 12.15 pm on November 12.
“SBI’s monetary transactions were Rs 54,370 crore, out of this cash deposit is Rs 47,868 crore, 58 lakh people were serviced, 22 lakh people operated ATMs and Rs 33 lakh has been withdrawn”, he added.
The Finance Minister also expressed gratitude to two segments of the population -- the people of this country and bank officers and employees -- for their “patience”.
Raids & searches
He also rubbished reports of searches as “wrong”. He said the only searches and raids being carried out were on the basis of intelligence reports and Enforcement Directorate probes.
On exchange of old currency for gold, he said stock details have been sought and in some places surveys had been done. “The government will not allow illegal transactions in bullion and will keep a close watch,” he added.
Jan Dhan accounts
On misuse of Jan Dhan accounts, the Finance Minister said “if anybody is found indulging in any form of unlawful activity, the department concerned will take it up and is keeping a close watch.”
When asked about the ‘badly hit’ small vendors, traders who were not getting supplies from wholesalers, the Finance Minister said: “Why should wholesale business be transacted only in black money?”
On unorganised and casual workers not being paid wages, the Finance Minister said:“MGNREGA workers get money in their bank accounts, so there is no reason why workers in any other segment should not follow the same and get Jan Dhan a/cs. Our experience in 2.5 years is that any exception to any segment is a gateway to black money.”
When asked about patients and their kin facing difficulties in private hospitals, Jaitley said: “We do not want private institutions to become money changers. If you have money put it in bank account and give them a cheque.”