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Demonetisation Disaster, Says Opposition As Modi's Policy Completes Five Years

Political parties blamed the BJP government for the state of the Indian economy and termed the Centre’s demonetisation policy disastrous as the move completes five years on Monday.

Photo Credit : Priyanka Chaturvedi/ Twitter

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The Indian Opposition has slammed Prime Minister Narendra Modi led Central Government for its demonetisation policy which was implemented on November 8, 2016. 

Political parties blamed the BJP government for the state of the Indian economy and termed the Centre’s demonetisation policy disastrous as the move completes five years on Monday. 

Opposition leaders of different parties took to Twitter to show their displeasure. Congress leader and General Secretary of the Party, Priyanka Gandhi Vadra questioned the government. 

Vadra wrote (roughly translated to English), "If demonetisation was successful then why hasn't corruption ended? Why didn't the black money come back? Why hasn't the economy gone cashless? Why didn't terrorism hurt? Why is inflation not controlled? #DemonetisationDisaster."

 

 


Amid the five long years of the policy by PM Modi, Indian currency notes in circulation continue to increase albeit at a slower pace even as digital payments rise with more people opting for cashless payment modes.

Congress veteran Shashi Tharoor also took to his official Twitter handle and wrote, "On the fifth anniversary of the most foolish, whimsical, ill-conceived and poorly-implemented policy ever devised by an Indian government since the days of Mohammad bin Tughlaq, let us bow our head to its victims. #DemonetisationDisaster."

 

 


According to the official figures, Banknotes in circulation increased earlier in the last financial year (FY) as several people chose for the precautionary holding of cash due to the ongoing circumstances or COVID-19 pandemic. 

 

Bengal based Trinamool Congress (TMC) did not hesitate to slam the central government. TMC MP Derek O’ Brien quoted CM Mamata Banerjee’s tweets. He wrote on Twitter, “On the night of 8 November 2016, barely hours after #Demonetisation was announced, only Mamata Banerjee got it to spot on. Five tweets calling out the draconian decision. (Take a look)."

 

 


Amid all the criticism, official figures show a surge in digital payments via different modes such as net banking and Unified Payments Interface (UPI) etc.

Former Congress leader (now Shiv Sena) Priyanka Chaturvedi also blamed the demonetisation for the alleged financial crisis in India. “Regret to all the countrymen on the 6th anniversary of demonetisation is equal to economic recession. Congratulations to the BJP government on Jashn-e-Bahara Day,” she wrote in a tweet in Hindi, tweeted Chaturvedi.


The notes available for use in value terms took off from Rs 17.74 lakh crore on November 4, 2016, to Rs 29.17 lakh crore on October 29, 2021. The notes available for circulation (NIC) expanded by Rs 2,28,963 crore on October 29, 2021, from Rs 26.88 lakh crore on October 30, 2020, as per RBI data.
 
“Economy into a tailspin, the poorest hurt. Informal sector decimated. No black money recovered, but the rich got richer. Cash in the economy is the highest ever now! This govt must bear responsibility for pushing India downhill, just for one man’s whim,” tweeted CPI(M) general secretary Sitaram Yechury.


The year-on-year (YoY) surge as on October 30, 2020, was Rs 4,57,059 crore while YoU rise in NIC on November 1, 2019, was Rs 2,84,451 crore. Meanwhile, the value and volume of banknotes in circulation went up by 16.8 per cent and 7.2 per cent during 2020-21.

 

Congress leader Jairam Ramesh, who is a regular critic of the BJP government tweeted, "With every passing year, it’s becoming even more clear that 8.11.2016 will be marked in the world’s economic history among the worst policy blunders anywhere. Demonetisation along with rushed GST destroyed the backbone of the Indian economy—the MSME & informal sectors especially."


"First, we were told demonetisation meant cashless economy. Soon the Sarvagyani changed track and said not cashless but less cash. Now, cash in circulation is above pre-demonetisation levels," Ramesh added.



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