Modi defends monetisation scheme, promises cheaper loans to poor

The Dollar Business Bureau

Amidst the ongoing fiasco following the announcement of demonetisation scheme on November 8, Prime Minister Narendra Modi on Sunday claimed that almost Rs.5 lakh crore were deposited into banks that will soon start distributing loans at cheaper interest rates.  

Laying stress on the fact that the government wasn’t “obstinate” about implementing the latest scheme, Modi said he had promised in his speech that he will regularly evaluate the scheme, and improve it if needed, and one of the main agendas is to give financial flexibility to the poor, as well as providing housing to the poor in rural areas by 2022. Modi said that the scheme has given a grievous blow to the rich and in turn will have a positive impact on the poor and the middle classes. 

Addressing a Bharatiya Janata Party election rally in Agra, Modi pleaded he had forewarned of the inconveniences in the aftermath of the implementation. What was also a departure from his earlier rhetorics where he repeatedly referred to the poor and their upliftment, Modi on Sunday said the scheme will benefit “middle classes” with respect to receiving cheaper loans from banks, resulting in better education for their children and cheaper homes.  

“Banks would not keep the money deposited with them in some vault, but give cheaper loans to set up small businesses. The poor and middle classes will get bank loans at cheap interest rates,” he said.   

The prime minister said his government will allow the poor to earn MNREGA wages if they construct their own houses, and will provide electricity supply and cooking gas connections to these houses. He also urged them to not let someone use their Jan Dhan bank accounts and not allow others to deposit Rs 2.5 lakh in their accounts.  

“I bow before India’s poor, its middle class, the educated, and the honest for having blessed the scheme. “I promise that your dreams will become a reality. I had asked for 50 days. I had forewarned that this will lead to some inconvenience, but I am surprised that the people of my country have supported me despite the inconvenience. The sacrifice of the poor, Dalits, tribals, middle class and women would not go in vain,” Modi said referring to the demonitisation scheme.  

He said the impact of demonetisation was already visible across the country, as municipalities and state electricity boards had started to receive unpaid property tax and power supply charges from the rich.