Modi to review post-demonetisation scenario with Niti Aayog

The meeting comes at a time when the Dec 30 deadline to deposit old currency notes in banks is just days away.

New Delhi: With the queues outside banks and cash vending machines refusing to end even more than 45 days after the demonetisation exercise was announced, and negative feedback about the move gaining ground among the common public with even stock markets falling amid feelers from the Centre over introduction of harsher tax measures in the near future, a concerned Government has called a meeting with economic experts at Niti Aayog on December 27 to discuss the post-demonetisation scenario, and thrash out ways to deal with the situation.

The meeting comes at a time when the December 30 deadline announced by the Government to deposit old currency notes of 500 and 1,000 denomination in banks is just days away, and indications are coming from the Government that the cash withdrawal restrictions may continue for quite some time. Also with speculations rife that some tax could be imposed on withdrawals, has also raised concern among people.

Sources privy to developments said that during the meeting, the Prime Minister is likely to discuss the current economic situation, especially with the National Stock Exchange (NSE) slumping to a 7-month low of 7,908 and the Sensex below 26,000 on Monday, after Mr Modi’s December 24 remark that market participants should contribute to nation-building in a “fair, efficient and transparent way”, as he promised more “sound and prudent policies and reform measures”, which was seen by some as the Government planning to impose long-term capital gains tax on profit made from shares. Though finance minister had sought to allay the fear saying that the Centre has no such intention, investors were a nervous lot.

( Source : Deccan Chronicle. )
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