Indian Govt’s latest claim on demonetisation: Situation will normalise within 10-15 days
Advertisement
The Indian government seems clueless on by when the cash crunch situation, risen from demonetization, will ease. Recently, Finance Minister Arun Jaitley had said it will take at least one to two quarters for the demonetization effect to cool down.
"The effect of demonetisation will remain for one or two quarters, but its effect on the economy will be seen in the long term,”Arun Jaitley had said.
However, in the latest claim, the Centre said it will just take 10-15 days.
The Indian Government told theSupreme Court the inconvenience caused to public over cash crunch will be over within 10-15 days.
Post demonetization, people are facing acute cash crunch, lining up in never ending queues outside banks and ATMs. The government defended the crisis, telling Supreme Court that it is "not sitting around doing nothing" and also added that all the problems will be over in "10-15 days".
"The government is not sitting around doing nothing...In 10-16 days it will be all over," the Centre said.
Meanwhile, calculations done bySaumitra Chaudhuri , an economist who advised Manmohan Singh earlier, estimates that the replacement for the stock of now worthless bills will only be re-circulated by May 2017. The reason is due to the limited capacity of the printing presses in the country for such a sudden, huge job.
The government further said that there hasn’t been a single case of social unrest and blamed the political overtones in the arguments on petitions challenging Prime MinisterNarendra Modi 's decision to ban Rs. 500 and 1,000 notes, which formed 86 per cent of the cash in circulation.
The government further said that it would not be possible to have a stock of printed notes ready before the notes ban announcement as it would have defeated the purpose of secrecy.
The court is hearing a batch of petitions that allege that the demonetization drive has left people facing a huge cash crisis because of the scarcity of new notes.
Arguing for the petitioner, senior lawyerPrashant Bhushan said the government was not prepared to tackle the impact of its sudden decision.
"There was no cash in ATMs, recalibration was not done in time and cooperative banks were being discriminated against," he said.
The court asked the government why people couldn't be assured a minimum amount for withdrawal.
The government said the withdrawal limit was restricted to ensure that everyone gets new currency.
Advertisement
"The effect of demonetisation will remain for one or two quarters, but its effect on the economy will be seen in the long term,”
However, in the latest claim, the Centre said it will just take 10-15 days.
The Indian Government told the
Post demonetization, people are facing acute cash crunch, lining up in never ending queues outside banks and ATMs. The government defended the crisis, telling Supreme Court that it is "not sitting around doing nothing" and also added that all the problems will be over in "10-15 days".
Advertisement
Meanwhile, calculations done by
The government further said that there hasn’t been a single case of social unrest and blamed the political overtones in the arguments on petitions challenging Prime Minister
The government further said that it would not be possible to have a stock of printed notes ready before the notes ban announcement as it would have defeated the purpose of secrecy.
The court is hearing a batch of petitions that allege that the demonetization drive has left people facing a huge cash crisis because of the scarcity of new notes.
Advertisement
Some of the petitioners have said that despite the government allowing withdrawals of Rs. 24,000 a week, banks often said they didn't have that much money.Arguing for the petitioner, senior lawyer
"There was no cash in ATMs, recalibration was not done in time and cooperative banks were being discriminated against," he said.
The court asked the government why people couldn't be assured a minimum amount for withdrawal.
The government said the withdrawal limit was restricted to ensure that everyone gets new currency.
Advertisement
- A centenarian who starts her day with gentle exercise and loves walks shares 5 longevity tips, including staying single
- A couple accidentally shipped their cat in an Amazon return package. It arrived safely 6 days later, hundreds of miles away.
- FSSAI in process of collecting pan-India samples of Nestle's Cerelac baby cereals: CEO
- India's e-commerce market set to skyrocket as the country's digital economy surges to USD 1 Trillion by 2030
- Top 5 places to visit near Rishikesh
- Indian economy remains in bright spot: Ministry of Finance
- A surprise visit: Tesla CEO Elon Musk heads to China after deferring India visit
- Unemployment among Indian youth is high, but it is transient: RBI MPC member