Helped reduce black money: PM Modi on four years of demonetisation

It's been four years since Prime Minister Narendra Modi-led NDA government announced demonetisation with the objective to fight black money, corruption and terror funding. On the fourth anniversary of demonetisation, PM Modi in a tweet defended the note ban move, saying it helped reduce black money, increase tax compliance and given a boost to transparency.

"Demonetisation has helped reduce black money, increase tax compliance and formalisation and given a boost to transparency," PM Modi tweeted using the hashtag ''DeMolishingCorruption''.

The Prime Minister said that these outcomes have been greatly beneficial towards national progress.

Along with his tweet, PM Modi also shared a graphic on how demonetisation has ensured better tax compliance, improved tax and GDP ratio, made India a lesser cash based economy and gave a boost to national security.

Demonetisation has helped reduce black money, increase tax compliance and formalization and given a boost to transparency.

These outcomes have been greatly beneficial towards national progress. #DeMolishingCorruption pic.twitter.com/A8alwQj45R

- Narendra Modi (@narendramodi) November 8, 2020

On November 8, 2016, Narendra Modi appeared on national television and announced the decision to ban all currency notes of higher denomination of Rs 500 and Rs 1,000 from midnight. Demonetisation of high-value currency notes -- Rs 500 and Rs 1,000 notes -- that constituted 86.4 per cent of the money in circulation in November 2016 was a step taken to bring back money that was out of the banking system.

Meanwhile, the Congress party continued to target the government, alleging that it was an attack on India's poor, its farmers, daily wagers and small businessmen. The party is observing November 8 as the "Viswasghaat Diwas".

Also Read: New study on demonetisation explains why cash is still king in India

Also Read: Demonetisation, GST continued to impact India's consumption story in 2019