Calling the decision of the Centre to demonetise currency notes of Rs 500 and Rs 1000 as "historic", Kashmiri Pandit Conference (KPC) Chief Kundan Kashmiri today said it will go in long way for the larger interests of national security and development of India.
"The decision of Narendra Modi Government at Centre on demonetisation of currency notes of 500 and 1000 is historic. It will be in the larger interests of national security and development," Kashmiri said today.
He said that the India's decision to withdraw high-value banknotes as part of its fight to root out black money,and ridding the financial system of "black component" and bringing transparency will strengthen Indian economy and spur growth.
"This step is a blow to funding of terrorism, black marketing etc in the country and it will act as a complete deterrent against the same," he added.
He further elaborated that parallel economy, based on the black money or unaccounted money, is a big menace to the Indian economy.
"It is also a cause of big loss in the tax-revenues for the government. Its elimination will benefit the economy in more than one way. The circulation of black money has adversely affected the economy in several ways," he added.
KPC chief said that the magnitude of cash in circulation is directly linked to the level of corruption.
"The poor have to bear the brunt of this. It has a direct effect on the purchasing power of the poor and the middle class," he added.
He said that high circulation of cash also strengthens the 'Hawala' trade which is directly connected to black money and illegal trade in weapons.
"In funding of terrorists, our enemy uses fake currency and dodgy funds to sponsor terror - this has been proven repeatedly," he said.
KPC Chief said that to break the grip of corruption and black money, the decision to withdraw high denomination currency notes of Rs 500 and Rs 1000 is ever required step to act heavily on the black money and to curb the 'Parallel Economy'.
"Derecognising Rs 1000 and Rs 500 notes beginning November 9, is the most significant move ever taken to curtail the parallel economy," he added.
"The move will give a sharp boost to all formal channels of payment which in turn will help the formal economy to grow," he added.
"No doubt it will create a bit problem for very shorter period, but It is going to bring the economy of the nation on right path", he added.
The honest people are total safe and those who have earned their hard money by legitimate sources are going to have an upper and respectful place in society rather than the corrupt ones, he added.
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