Demonetisation is setback to parallel black money economy: Arun Jaitley

Mumbai: Finance Minister Arun Jaitley today said his government’s decision to withdraw Rs 500 and Rs 1,000 currency notes from economic system is a “setback to parallel black money economy”.

“A lot of currency operating outside system will now have to get in to banking system,” Jaitley said while updating the media on anti-black money measure.

“This step will help expand GDP, push more money in the system,” Jaitley added who went on to say that demonetisation is not a permanent solution.

The Finance Minister's media briefing comes a day after Prime Minister Narendra Modi in a televised address to the nation announced his government was withdrawing Rs 500 and Rs 1000 notes with effect from November 8 midnight.

With this, the legal tender status of these two denominations ceases to exist.

According to Jaitley, a number of steps have been taken to curb the menace of black money and to track benami transactions.

“Since our government has come to power, we have taken a number of measures to embolden our economy," he said.

This one decision will change the course of the way people spend and keep their money, he added.