My dear
citizens
I hope you ended the festive season of Diwali with joy and new hope. Today, I
will be speaking to you about some critical issues and important decisions.
Today I want to make a special request to all of you. You may recall the economic
situation in May 2014 when you entrusted us with an onerous responsibility. In
the context of BRICS, it was being said that the “I” in BRICS was shaky. Since
then, we had two years of severe drought. Yet, in the last two and a half years
with the support of 125 crore Indians, India has become the “bright spot” in
the global economy. It is not just we who are saying this; it is being stated
by the International Monetary Fund and the World Bank.
In this effort for development, our motto has been ‘Sab Ka Saath Sab Ka Vikas’:
We are with all citizens and for development of all citizens. This Government
is dedicated to the poor. It will remain dedicated to them. In our fight
against poverty, our main thrust has been to empower the poor, and make them active
participants in the benefits of economic progress.
- The
Pradhan Mantri Jan Dhan Yojana,
- the
Jan Suraksha Yojana,
- the
Pradhan Mantri Mudra Yojana for small enterprises,
- the
Stand-up India programme for Dalits, Adivasis and Women,
- the
Pradhan Mantri Ujjwala Scheme for gas connections in the homes of the
poor,
- the
Pradhan Mantri Fasal Beema Yojana and Pradhan Mantri Krishi Sinchai Yojana
to protect the income of farmers,
- the
Soil Health Card Scheme to ensure the best possible yield from farmers’
fields,
- and
the e-NAM National Market Place scheme to ensure farmers get the right
price for their produce
— these
are all reflections of this approach.
In the
past decades, the spectre of corruption and black money has grown. It has
weakened the effort to remove poverty. On the one hand, we are now No. 1 in the
rate of economic growth. But on the other hand, we were ranked close to one
hundred in the global corruption perceptions ranking two years back. In spite
of many steps taken, we have only been able to reach a ranking of seventy-six
now. Of course, there is improvement. This shows the extent to which corruption
and black money have spread their tentacles.
The evil of corruption has been spread by certain sections of society for their
selfish interest. They have ignored the poor and cornered benefits. Some people
have misused their office for personal gain. On the other hand, honest people
have fought against this evil. Crores of common men and women have lived lives
of integrity. We hear about poor auto-rickshaw drivers returning gold ornaments
left in the vehicles to their rightful owners. We hear about taxi drivers who
take pains to locate the owners of cell phones left behind. We hear of
vegetable vendors who return excess money given by customers.
There comes a time in the history of a country’s development when a need is
felt for a strong and decisive step. For years, this country has felt that
corruption, black money and terrorism are festering sores, holding us back in
the race towards development.
Terrorism is a frightening threat. So many have lost their lives because of it.
But have you ever thought about how these terrorists get their money? Enemies
from across the border run their operations using fake currency notes. This has
been going on for years. Many times, those using fake five hundred and thousand
rupee notes have been caught and many such notes have been seized.
Brothers and sisters, On the one hand is the problem of terrorism; on the
other is the challenge posed by corruption and black money. We began our battle
against corruption by setting up an SIT headed by a retired Supreme Court
judge, immediately upon taking office. Since then
- a
law was passed in 2015 for disclosure of foreign black money;
- agreements
with many countries, including the USA, have been made to add provisions
for sharing banking information;
- a
strict law has come into force from August 2016 to curb benami
transactions, which are used to deploy black money earned through
corruption;
- a
scheme was introduced for declaring black money after paying a stiff
penalty;
My dear
countrymen, Through all these efforts, in the last two and a half years,
we have brought into the open nearly 1 lakh 25 thousand crore rupees of black
money belonging to the corrupt. Honest citizens want this fight against
corruption, black money, benami property, terrorism and counterfeiting to
continue. Which honest citizen would not be pained by reports of crores worth
of currency notes stashed under the beds of government officers? Or by reports
of cash found in gunny bags?
The magnitude of cash in circulation is directly linked to the level of
corruption. Inflation becomes worse through the deployment of cash earned in
corrupt ways. 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. You may yourself have
experienced when buying land or a house, that apart from the amount paid by
cheque, a large amount is demanded in cash. This creates problems for an honest
person in buying property. The misuse of cash has led to artificial increase in
the cost of goods and services like houses, land, higher education, health care
and so on.
High circulation of cash also strengthens the hawala trade which is directly
connected to black money and illegal trade in weapons. Debate on the role of
black money in elections has been going on for years.
Brothers
and sisters,
To
break the grip of corruption and black money, we have decided that the five
hundred rupee and thousand rupee currency notes presently in use will no longer
be legal tender from midnight tonight, that is 8th November 2016. This means
that these notes will not be acceptable for transactions from midnight onwards.
The five hundred and thousand rupee notes hoarded by anti-national and
anti-social elements will become just worthless pieces of paper. The rights and
the interests of honest, hard-working people will be fully protected. Let me
assure you that notes of one hundred, fifty, twenty, ten, five, two and one
rupee and all coins will remain legal tender and will not be affected.
This step will strengthen the hands of the common man in the fight against
corruption, black money and fake currency. To minimise the difficulties of
citizens in the coming days, several steps are being taken.
- Persons
holding old notes of five hundred or one thousand rupees can deposit these
notes in their bank or post office accounts from 10th November till close
of banking hours on 30th December 2016 without any limit.
- Thus
you will have 50 days to deposit your notes and there is no need for
panic.
- Your
money will remain yours. You need have no worry on this point.
- After
depositing your money in your account, you can draw it when you need
it.
- Keeping
in mind the supply of new notes, in the first few days, there will be a
limit of ten thousand rupees per day and twenty thousand rupees per week.
This limit will be increased in the coming days.
- Apart
from depositing your notes in your bank account, another facility will
also be there.
- For
your immediate needs, you can go to any bank, head post office or sub post
office, show your identity proof like Aadhaar card, voter card, ration
card, passport, PAN card or other approved proofs, and exchange your old
five hundred or thousand rupee notes for new notes.
- From
10th November till 24th November the limit for such exchange will be four
thousand rupees. From 25th November till 30th December, the limit will be
increased.
- There
may be some who, for some reason, are not able to deposit their old five
hundred or thousand rupee notes by 30th December 2016.
- They
can go to specified offices of the Reserve Bank of India up to 31st March
2017 and deposit the notes after submitting a declaration form.
- On
9th November and in some places on 10th November also, ATMs will not work.
In the first few days, there will be a limit of two thousand rupees per
day per card.
- This
will be raised to four thousand rupees later.
- Five
hundred and thousand rupee notes will not be legal tender from midnight.
However for humanitarian reasons, to reduce hardship to citizens, some
special arrangements have been made for the first 72 hours, that is till
midnight on 11th November.
- During
this period, government hospitals will continue to accept five hundred and
thousand rupee notes for payment.
- This
is for the benefit of those families whose members may be unwell.
- Pharmacies
in government hospitals will also accept these notes for buying medicines
with doctors’ prescription.
- For
72 hours, till midnight on 11th November, railway ticket booking counters,
ticket counters of government buses and airline ticket counters at
airports will accept the old notes for purchase of tickets. This is for
the benefit of those who may be travelling at this time.
- For
72 hours, five hundred and thousand rupee notes will be accepted also at•
Petrol, diesel and CNG gas stations authorised by public sector oil
companies• Consumer co-operative stores authorised by State or Central
Government• Milk booths authorised by State governments• Crematoria and burial
grounds.These outlets will have to keep proper records of stock and
collections.
- Arrangements
will be made at international airports for arriving and departing
passengers who have five hundred or thousand rupee notes of not more than
five thousand rupees, to exchange them for new notes or other legal
tender.
- Foreign
tourists will be able to exchange foreign currency or old notes of not
more than Rs 5000 into legal tender.
- One
more thing I would like to mention, I want to stress that in this entire
exercise, there is no restriction of any kind on non-cash payments by
cheques, demand drafts, debit or credit cards and electronic fund
transfer.
Brothers
and sisters,
In
spite of all these efforts there may be temporary hardships to be faced by
honest citizens. Experience tells us that ordinary citizens are always ready to
make sacrifices and face difficulties for the benefit of the nation. I see that
spirit when a poor widow gives up her LPG subsidy, when a retired school
teacher contributes his pension to the Swacch Bharat mission, when a poor
Adivasi mother sells her goats to build a toilet, when a soldier contributes 57
thousand rupees to make his village clean. I have seen that the ordinary
citizen has the determination to do anything, if it will lead to the country’s
progress.
So, in this fight against corruption, black money, fake notes and terrorism, in
this movement for purifying our country, will our people not put up with
difficulties for some days? I have full confidence that every citizen will
stand up and participate in this ‘mahayagna’. My dear countrymen, after the
festivity of Diwali, now join the nation and extend your hand in this Imandaari
ka Utsav, this Pramanikta ka Parv, this celebration of integrity, this festival
of credibility.
I am sure that all political parties, all governments, social services
organizations, the media and indeed all sections of the society will take part
in this with enthusiasm and make it a success.
My dear countrymen, Secrecy was essential for this action. It is only now,
as I speak to you, that various agencies like banks, post offices, railways,
hospitals and others are being informed. The Reserve Bank, banks and post
offices have to make many arrangements at very short notice. Obviously, time
will be needed. Therefore all banks will be closed to the public on 9th
November. This may cause some hardship to you. I have full faith that banks and
post offices will successfully carry out this great task of national
importance. However, I appeal to all of you to help the banks and post offices
to meet this challenge with poise and determination.
My dear citizens, From time to time, based on currency needs, the Reserve
Bank with the approval of the Central Government brings out new notes of higher
value. In 2014, the Reserve Bank sent a recommendation for issue of five
thousand and ten thousand rupee notes. After careful consideration, this was
not accepted. Now as part of this exercise, RBI’s recommendation to issue two
thousand rupee notes has been accepted. New notes of five hundred rupees and
two thousand rupees, with completely new design will be introduced. Based on
past experience, the Reserve Bank will hereafter make arrangements to limit the
share of high denomination notes in the total currency in circulation.
In a country’s history, there come moments when every person feels he too
should be part of that moment, that he too should make his contribution to the
country’s progress. Such moments come but rarely. Now, we again have an
opportunity where every citizen can join this mahayajna against the ills of
corruption, black money and fake notes. The more help you give in this
campaign, the more successful it will be.
It has been a matter of concern for all of us that corruption and black money
tend to be accepted as part of life. This type of thinking has afflicted our
politics, our administration and our society like an infestation of termites.
None of our public institutions is free from these termites.
Time and again, I have seen that when the average citizen has to choose between
accepting dishonesty and bearing inconvenience, they always choose to put up
with inconvenience. They will not support dishonesty.
Once again, let me invite you to make your contribution to this grand sacrifice
for cleansing our country, just as you cleaned up your surroundings during
Diwali.
Let us ignore the temporary hardship
Let us join this festival of integrity and credibility Let us enable
coming generations to live their lives with dignity Let us fight corruption
and black money Let us ensure that the
nation’s wealth benefits the poor Let us enable law-abiding citizens to
get their due share.
I am confident in the 125 crore people of India and I am sure country will get
success.
Thank
you very much. Thanks a lot.
Namaskar.
Bharat Mata Ki Jai
