Demonetisation anniversary: Opposition observes 'black day'; govt lauds note ban for controlling terror financing

A year after Prime Minister Narendra Modi implemented demonetisation and declared Rs 500 and Rs 1,000 notes illegal, the Opposition stood firm in its stand against the move. While the BJP celebrated ‘anti-black money day’, the Opposition parties observed ‘black day’ to mark their protest against the move. Modi shared a short video about the benefits of the move and thanked people for supporting the government in its anti-black money measures.

Here are the benefits of demonetisation, encapsulated in this short film. Have a look. #AntiBlackMoneyDay pic.twitter.com/rPmGUYnTzI

— Narendra Modi (@narendramodi) November 8, 2017

The Congress and other parties relentlessly campaigned against demonetisation and took out protest marches. All major Opposition parties, social organisations, farmer groups, mediapersons, NGOs, civil society activists and individuals organised massive protests across Mumbai and other parts of Maharashtra on Wednesday, even as the government launched an advertising blitzkrieg lauding its move. [caption id=“attachment_4199949” align=“alignleft” width=“380”] Youth Congress supporters wear black aprons during a protest rally to mark the first anniversary of the Demonetisation. PTI[/caption] The Congress in Karnataka also observed black day. “What good did the note ban do, except for bring the country’s Gross Domestic Product (GDP) down,” questioned Karnataka Pradesh Congress Committee president G Parameshwara at the gathering. “The GDP has dropped to 5.7 percent (in the first quarter of 2017-18) from 7.9 percent (during the same quarter) in 2016 as a result of demonetisation”. Former prime minister Manmohan Singh blamed demonetisation for rampant job losses and said that the textile sector in Surat alone had to face 21,000 layoffs, News18 reported. He further said that the note ban exercise was a reckless step and that scrapping higher value currency notes was organised loot and legalised plunder. Congress vice-president Rahul Gandhi called it a “tragedy” and “thoughtless act”. He further said that his party stood with all those people who have suffered due to demonetisation. West Bengal chief minister Mamata Banerjee slammed demonetisation as a “devil act” alleging the currency exercise was “only to convert black money into white for vested interests of the political party in power”. BJP leaders and Union minister were quick to hit back. Union minister Smriti Irani said that the note ban exercise was definitely a tragedy for the Gandhi family. “I think that demonetisation is definitely a tragedy for the Gandhi family which is now synonymous with the word corruption,” Irani alleged. Goa chief minister Manohar Parrikar said that note ban has helped in bringing terror financing under control. “Several things like fake notes and financing of terrorism have come under control due to demonetisation,” he said. Defence minister Nirmala Sitharaman said that demonetisation has choked the flow of funds to terrorists in Jammu and Kashmir besides adversely impacting the left wing extremism in several parts of the country. BJP chief Amit Shah launched a signature campaign to mark the ‘anti-black money’ day and said he supported Modi’s commitment for a “new India, free from corruption and black money”. The displeasure among the public is also apparent because 63 percent respondents of a nationwide survey said they witnessed people in “serious problems” due to the government’s sudden move announced on 8 November last year, while 65 percent said they saw marriages being postponed because of the note ban. However, personal finance expert told Firstpost’s Bindisha Sarang that demonetisation has increased financial savings of individuals. “The impact on savings has been positive. Money which was lying idle all over the place, for instance in lockers or home, was moved into the formal system. With interest rates going down, people started looking for alternative investment options and moved from real investment like gold to financial investments like MFs and equity. This increased financial savings in general,” said Parag Paranjpe, certified financial planner and founder director of Think Consultants. With inputs from agencies