TRS supports demonitisation, says KCR

Hyderabad, Dec 16 (INN): Telangana Chief Minister K. Chandrashekar Rao has announced that his government wholeheartedly supports the demonitisation move which was taken in the interests of the nation.

Speaking on Short Discussion on demonitisation issue on the first day of winter session of State Legislative Assembly on Friday, the Chief Minister said that Prime Minister Narendra Modi has banned old Rs. 500 and Rs. 1,000 notes to realise the objective to eliminate black money, prevent use of counterfeit currency, eliminate political corruption take up total cleansing of the political system besides tackling terrorism and extremism and thereby building a corruption free India.

While announcing his support, the Chief Minister said that Central Government should initiate many more steps towards elimination of all forms of black money. 'The Government of Telangana also suggests that besides currency notes, black money held in the form of diamonds, gold, shares and foreign currency and the black money generation through crony capitalism and flow of black money into the country through money laundering from British Virgin Islands, Mauritius, Singapore should be regulated effectively. The Government of Telangana is of the firm belief that these efforts to eliminate black money should continue till the goal of complete transformation of the nation is realised,' he said.

KCR said that keeping in view the difficulties and inconvenience faced by the people following the implementation of demonitisation, the State Government was in constantly touch with the RBI. He also briefed the House about his meeting with the Prime Minister on 19th November. He said the then Chief Secretary Dr. Rajiv Sharma wrote a letter to RBI on 22nd and 26th November requested the RBI Governor to supply about Rs. 5,000 crore in currency notes of small denomination for meeting the requirement of the State. In response, the officials of the Reserve Bank of India have indicated to the Chief Secretary on 15th December that cash for meeting requirements of the people of the State will be supplied.

In his letter to the Reserve Bank officials on 21st November, Telangana State Principal Finance Secretary K. Ramakrishna Rao has pointed out a number of lapses in sending currency notes for meeting the requirements of the State. Difficulties being faced in disbursing Aasara Pensions have also been explained. In addition, he explained the adverse impact of the measure on farmers, small traders and daily wage earners. He requested that Rs.5,000 crore may immediately be supplied to the State in the form of Rs.500 and Rs. 100 currency notes, the Chief Minister informed.

On the same issue, new Chief Secretary Pradeep Chandra, in a letter dated 8th December, has brought to the notice of RBI that sufficient money is not being kept in the ATMs. 'Finance Minister Eatala Rajender has also strongly expressed the necessity of supplying sufficient currency notes of small denomination while attending the two meetings of the GST Council. The request of Municipal Administration Minister K. Tarakarama Rao for accepting old currency notes for the payment of bills has been favourably considered and the Central Government has permitted payment of bills through old currency notes. The Central Government has also taken into account the request for extending the time limit for such payments,' he said.

As per the information furnished by the RBI, an amount of Rs.19,109 crore cash has been supplied to the State. All over the State, the amount deposited by people in banks is Rs. 57,479 crore. Understanding the problems of the people on humanitarian grounds, the State Government has requested the banks to provide separate queue lines for women and the aged.

The Chief Minister said that the State Government was closely monitoring the situation arising from the demonetisation of high value currency notes and has put in place appropriate measures to ensure that the economy of the State does not get derailed. Immediate steps have been taken to encourage cashless transactions. 'The assessments made by the Central Government institutions indicate that Telangana State stands first in the country in the number of cashless transactions. On a pilot basis, the State Government is making all out efforts to make Siddipet Assembly Constituency cashless. Already, Ibrahimpur village of this constituency has been converted into a cashless village. In the recently held Collectors' Conference, the steps required to be taken towards promoting cashless transactions have been discussed in detail. The Collectors have indicated that efforts are being made to make a few villages in each district cashless within a short period of time,' he said.

The State Government has constituted a Cabinet Sub-Committee to recommend policy measures with regard to cashless transactions. 'To speed up implementation, a Task Force has been specially formed. The State Government will shortly launch TS Wallet in a manner which will provide confidence to people in cashless transactions. The government is taking all necessary measures for promoting cashless transactions in the State,' he said.