Lok Sabha Question No. 4909 (UNSTARRED), answered on 2016-12-16
Subject: Benefits of Demonetisation
Ministry: FINANCE
Asked by: LALLU SINGH, JITENDRA CHAUDHURY, RAMACHANDRAN MULLAPPALLY, SUNIL KUMAR SINGH

## GOVERNMENT OF INDIA

## MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA UN STARRED QUESTION NO. 4909 TO BE ANSWERED ON 16 TH DECEMBER 2016/25 TH AGRAHAYANA SAKA, 1938 BENEFITS OF DEMONETISATION

4909.

SHRI LALLU SINGH:

SHRI JITENDRA CHAUDHURY:

SHRI MULLAPPALLY RAMACHANDRAN:

SHRI SUNIL KUMAR SINGH:

QUESTION

## Will the Minister of FINANCE be pleased to state:

- (a) whether the Government has taken expert opinion of a favourable outcome of demonetisation  in  the  long  run  for  the  economy and reduction  in  economic disparity in the country, if so, the details thereof;
- (c) whether the Government machinery has faced difficulties to  solve  the  cash woes of people post implementation of the demonetisation policy, if so, the details thereof and the reasons therefor; and
- (b) whether the Government has received support from other countries in this regard, if so, the details thereof;
- (d) the amount of black money seized/withdrawn from the market and offenders punished as on date after the demonetisation drive?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI ARJUN RAM MEGHWAL)

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- (a): The overall economic growth of the Indian economy is dependent on many factors that, iter-alia ,  include the rate of capital formation and savings, utilization of technology,  availability  of  infrastructure,  efficiency  of  resource  allocation,  quality  of institutions, governance and the policy framework in place, money supply and degree of financial development. Further, the situation after the cancellation of legal tender character  of  old  denomination  banknotes  is  being regularly monitored  in  the Government.
- (b): Diplomatic Missions have written to convey their appreciation for the Government's recent effort to make our economy more transparent and as a move that will also have a positive impact on FDI.
- (c): Reserve Bank of India (RBI) and the Banks have been advised to step up the supply of cash to the public. The availability of cash and issuance of cash to bank branches  and  Post  Offices  on  a  daily  basis  is  being  constantly  monitored  and necessary  rebalancing  is  being  done  for  more  efficient  allocation  of  banknotes  of

requisite denominations between different areas. Further, on the basis of feedback/suggestions received from various quarters, Government has taken various steps to ameliorate the inconvenience caused to the public, the information regarding which is available at finmin.nic.in (d): About Rs. 370 crores of cash and jewellery has been seized by the Income Tax

Department since the cancellation of legal tender character of old high denomination banknotes. The total undisclosed income admitted before the Department is more than Rs. 2500  cores.  Close  coordination  is  being  maintained  with  other  enforcement agencies  for  action  against  the  offenders  as  an  on-going  process  which  includes searches,  surveys,  enquiries,  tax  assessment,  levy  of  penalties  and  filing of prosecution complaints in criminal courts, wherever applicable.

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