NEW DELHI: Vice President M Venkaiah Naidu today said the RBI and the Income Tax Department should ascertain at the earliest whether the money deposited in banks post demonetisation was “white or black” in order to maintain the credibility of the reform.
As part of efforts to curb illicit fund flows in the system, the Government had cancelled old Rs 500 and Rs 1,000 notes as legal tenders in November 2016.
After demonetisation, Naidu said, “people started enquiring from drivers, cooks, servants whether they have bank accounts or not”. Some people requested them to park some of their ill-gotten money in bank accounts, he added.
Naidu said that there was widespread cynicism about demonetisation and people wanted to know what was the gain when the entire money has reached the banks.
“What was the purpose of demo (demonetisation)? Apart from counterfeit notes, the purpose was to bring money into the system. So, money reached banks with address. What else you want!,” he said.
Speaking at the centenary celebration of New India Assurance here, Naidu said it is now for the Reserve Bank of India (RBI) and the Income Tax Department to prove the money which has come back to the banks is white or black”.
“That should be done at the earliest so that the credibility of these reforms would be maintained. This is my advice to the RBI and also the other agencies involved,” the Vice President said. (AGENCIES)
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