Prime Minister Narendra Modi addressed the nation on the notes ban, wherein he announced on November 8 without warning as a big step to check tax evasion. The deadline to deposit banned 500 and 1,000 notes in banks ended yesterday. Restrictions on the withdrawal of money from banks and ATMs are likely to continue. The notes that were cancelled amounted to a whopping 86 percent of the cash in circulation. Since the ban, 14 lakh crores have been deposited in banks and six lakh crore new notes are in circulation. In multiple raids over the past 50 days, over 3,000 crores have been seized in undisclosed wealth. Finance Minister Arun Jaitley has said that tax and revenue collections are up. As the next step in his war on corruption the Prime Minster has pitched a transition to a cashless economy and the government has announced several incentives for making digital payments.
Here are the highlights of PM Narendra Modi’s speech:
- 3 Crore Kisan credit cards will be converted to Rupay Cards
- Small Traders could avail loan up to Rs 2 crore and Center would offer the credit guarantee for it. In addition, Banks will raise Cash Credit limit to 25% from existing 20% for Traders.
- People living in Rural Areas can avail 3 percent rebate on interest rate on loans up to Rs 2 lakh for building house or renovation works.
- Interest subsidy of 4 percent for housing loans of up to Rs 9 lakh in Urban areas. Whereas, The subsidy would be just 3 percent for home loans up to Rs 12 lakh.
- The government will pay interest for 60 days on loans taken by farmers for Rabi farming from district cooperative banks and societies.
- The government will give Nabard Rs 20,000 crore for giving loans to cooperatives at low interest rates.
- The credit guarantee for micro, small and medium enterprises will be doubled to Rs 2 crore. This will also cover loans from NBFCs.
- 8% interest on deposits of up to Rs 7.5 lakh for senior citizens for 10 years.
- The government to give pregnant women Rs 6,000, to be transferred into their bank accounts.