Note ban was watershed moment in India's economy: Jaitley

TNN Bureau. Updated: 11/7/2017 4:52:05 PM Business and Economy

New Delhi, Nov 7: Describing the Modi Government’s measure of demonetisation taken a year ago on November 8 as a ‘’watershed moment’’ , Finance Minister Arun Jaitley on Tuesday said the step was badly needed to change the status quo in the prevailing economic system.

'This status quo needed to be shaken up, and Prime Minister Narendar Modi tried to bring about a

change in the system through structural reforms to undo the policy paralysis of the previous Congress government,' Mr Jaitley said.

His remarks came at a press conference on the eve of the first anniversary of the controversial note ban under which currency of Rs 500 and Rs 100 were discontinued as legal tender on November 8 last year.

Responding to critics of demonetisation, the Finance Minister said his government did not claim that note ban will put an end to corruption once for all, but it was certain that reducing the circulation of cash in the system had made indulging in corruption a very difficult proposition.

He said the natural consequence of excess cash in the system was tax evasion because of which a tax payer had not only to pay his own tax but also for the evader. ‘’So it was a double whammy for the tax payer,’’ he said.

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