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What was on PM Narendra Modi's mind before announcing ban on Rs 500, Rs 1000 notes?

The Decision To Demonetise Rs 500 And Rs 1000 Currency Notes To Curb The Menace Of Black Money Was Not An Easy Decision. Prime Minister Narendra Modi Discussed Various Aspects And Held Several Meetings Before Announcing Taking The Decision.

News Nation Bureau | Edited By : Bindiya Bhatt | Updated on: 09 Nov 2016, 09:39:50 PM
Prime Minister Narendra Modi (Pic: Getty)

New Delhi:

The decision to demonetise Rs 500 and Rs 1000 currency notes to curb the menace of black money was not an easy decision. Prime Minister Narendra Modi discussed various aspects and held several meetings before announcing taking the decision.

Here is what all happened and what was on PM Modi's mind before the ban:

#PM Modi had given a go ahead this scheme six months ago.

#PM Modi was worried about the possibility of inconvenience that could be faced by common people.

#In 1978, high value notes were banned during the tenure of former PM Morarji Desai. PM Narendra Modi studied the file related to the decision taken by the then government.

#PM Modi discussed on the confidentiality with Finance Minister Arun Jaitley fearing the possibility that the information could be leaked.

#It was kept so confidential that it was not even revealed to other ministers in the cabinet. It was kept to only PM Modi, RBI Governor, Finance Minister and Finance Secretary.

#PM Modi held four meetings with RBI Governor, Finance Minister and Finance Secretary on the decision. The strategy to ban the currency notes was chalked out during these meetings.

#PM Modi was worried about the possible inconvenience in transactions after demonetisation. But PM Modi was told that America, Russia and China have only 100 value notes, hence it won't be a problem in India too.

#Now the question is why the government is introducing Rs 2000 notes? The simple reason was if the government allowed to circulate Rs 1000 again, Pakistan would again print those notes and send them to India. As of now, Pakistan won't be able to print Rs 2000 notes.

#The decision was kept top secret and the message was recorded on DD. Cabinet was informed only after the recording and the ministers were not allowed to go out until the telecast. The ministers are not allowed to carry their mobile phones in cabinet meet.

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First Published : 09 Nov 2016, 09:37:00 PM