Law will do its job on black money holders, govt is friend of the honest

New Delhi: Prime Minister Narendra Modi on Saturday, while addressing the nation on the eve of the New Year, said that the government in 2017 would try to bring back normalcy in banks that faced cash crunch following the demonetisation of Rs 500 and Rs 1,000 notes.

“Our country has been through a historic purification drive following the announcement of demeontisation after Diwali. This will play an important role in the course of the nation for many years to come,” Modi said.

“Corruption, black money, counterfeit currency had crippled common man. 125 crore citizens have proved that for them truth and honesty is important despite inconveniences post demonetisation,” Modi said.

“Foundation of a bright future has been laid through their sweat and toil. I knew people had to stand in queues to withdraw their own money but people don’t want to be even a step behind in fight against corruption, black money, and counterfeit," he added.

“Indian economy had cash circulation disproportionately higher than similar sized economies which had led to price rise,”

The Prime Minister said that the government will try to normalise situation in banks in the new year.

“All concerned have been directed to restore normalcy in banking system, particularly in rural and far flung areas, to end difficulties of people,” he said.

The Prime Minister is addressing the nation a day after his 50-day deadline for normalcy to return post-demonetisation came to an end on Friday.

Highlights from the Prime Minister's speech:

• As we welcome the New Year, lets come together to build a bright future of the country.

• Prime Minister seeks debate on holding Parliamentary and Assembly elections simultaneously and issue of rising costs in polls. Fight against black money and corruption should not be stopped.

• Youths who had turned to wrong path are returning in large nos, if we remain vigilant we can save our children from returning to violence.

• 8 per cent interest rate will be guaranteed on deposits of up to Rs 7.5 lakh for 10 years for senior citizens; interest will be paid monthly.

• Rs 6000 assistance will be provided to pregnant women; the assistance money will be transferred to their account.

• Banks have been asked to raise cash credit limit to small business to 25 per cent from 20 per cent.

• Government to stand guarantee for loans up to Rs 2 crore from current Rs 1 crore, to small businesses.

• Government to pay interest for 60 days on loans taken by farmers for rabi season from district cooperative banks and primary societies. Rabi crop sowing up by 6 per cent; fertilizer sales up 9 per cent despite doomsday predictions by critics.

• In the next 3 months, three crore Kisaan credit cards will be converted to Rupay Cards.

• Measures have been taken to get more loans from cooperative banks and societies for farmers at low interest rates.

• Two new schemes under Pradhan Mantri Awas Yojana to provide of 4 per cent interest waiver on loan of up to Rs 9 lakh and of 3 per cent on loan upto Rs 12 lakh. 3 per cent interest waiver on loan upto Rs 2 lakh for construction of houses in rural India

• PM asks banks to focus on poor, lower middle class and middle class to tune their programmes out of huge money that has come to them.

• Serious offences by bank and govt officials have come to light; no one will be spared.

• Bank employees and authorities along with people have done exemplary work, yes there have been reports of a few indulging in corruption.

• A balance has to be brought between cash in the system and being cashless.

• Only 24 lakh people have declared their income of being over Rs 10 lakh.

• Law will do its job on illegal wealth holders but government priority that honest get protection and their difficulties are reduced.

• Demonetisation has caused deep infliction on blackmoney, terror, human traffickers and counterfeit currency.

• Its job of officials to protect rights of common man and isolate dishonest.

• The government is friend of the honest and is working to bring those who do not value honesty into its fold.

• Lack of cash created problems but excess cash creates more problems.