Demonetisation helped banks improve their fund situation: Jaitley

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SME Times News Bureau | 23 Nov, 2016
Union Finance Minister Arun Jaitley on Tuesday said the demonetisation move allowed banks to collect huge amounts of money that would help the government undertake welfare measures. He also indicated that there could be more relaxations for the farmers in the coming days.

Addressing a meeting here of the BJP parliamentary party, he said that as a result of the demonetisation decision, a "huge amount" of money has come to the banking system which will help the exchequer and the banking system.

"Such inflow of huge amount only helps to increase the banks' ability to invest more in development works and to give loans for agriculture and rural development. It is hence only natural that the loan interest rate will be less," Jaitley said, adding that the banks have already started reducing the loan interest rates.

Jaitley also took on Congress Vice President Rahul Gandhi referring to his recent speech in Mumbai.

"Some people say even the Finance Minister did not know of this decision, and then they say the party knew beforehand," he said.

Jaitley, Leader of the House in the Rajya Sabha, said: "We took the opposition by surprise in the Rajya Sabha and said we were ready for the debate immediately. Caught unawares now, the opposition has changed their strategy and are running away from debate."

He also said the situation is normalising in the urban areas and also indicated that there could be more relaxations for farmers.

"In the next few days, the focus will be on the rural areas so that farmers have enough funds because it is rabi sowing season. A few decisions were taken yesterday (Monday) night which will be made public," said Jaitley.

He also said that the digital economy will also get a boost by the decision.

"It's a very big decision. It required a lot of courage for the government to implement it. It's a historic step. The entire nation is welcoming it. this move will help eradicate pverty," Jaitley added.