Large amount of black money has come into banking system, remonetisation progressing well: Arun Jaitley

Talking of the positive outcome of the demonetisation undertaken by government on November 8, 2016, Finance Minister Arun Jaitley said on Sunday that large amount of money, including black money, has come into the banking system.

New Delhi: Talking of the positive outcome of the demonetisation exercise undertaken by government on November 8, 2016, Finance Minister Arun Jaitley said on Sunday that large amount of money, including black money, has come into the banking system.

High denomination notes Rs 5,00 and Rs 1,000 notes ceased to be legal tender with effect midnight of November 8, 2016. Prime Minister Narendra Modi, in his address to the nation, while announcing demonetisation had said that the move will result in curbing corruption and black money in the economy.

While speaking to the news agency ANI, Finance Minister added that surge in banks' deposits is seen as an increase in the lending ability of banks. "Remonetisation has progressed extremely well and I am sure in the coming days it will be completed", added Jaitley.

In a relief to common man, the Reserve Bank of India, on Saturday, increased the cash withdrawal limit from ATMs to Rs 4,500 per day from the current Rs 2,500 from January 1.

Jaitley added that he sees GST implementation in 2017 as well as the digitised economy becoming the future of India.

He said, India was one of the fastest growing economies last year and will continue to be so this year. We are now keeping the inflation under control, consequently we have seen interest rates coming down, said Jaitley.

Finance ministry on Friday had said that economy grew 7.2% in the first half of the current fiscal, retaining its position as one of the fastest growing major economies in the world.

The ministry, in its year-end review, said that inflation has remained in “comfort zone” during the year with retail and wholesale inflation averaging 5.2% and 2.7% respectively in the April-October period.