Addressing the nation on New Year’s Eve on the impact of demonetisztion and the roadmap ahead for the economy, Prime Minister Narendra Modi on Saturday said India has gone through a massive cleansing process and purification drive (Shuddhi Yatra). In a 43-minute-long address to the nation, he said the citizens of the country were desperate to break free of corruption, but had never been given a chance to do so earlier, and had in fact gotten used to the idea of offering extra money to get their jobs done.
Prime Minister Modi said India has set a new example for the world through this 50-day-long demonetisation exercise, adding that their commitment and discipline to tackle the cash crunch would be a living example for generations to come. ‘This is the first instance in India’s history when the government and the people have fought shoulder to shoulder. I got thousands of letters from the people who shared their pain, but they reaffirmed their resolve to stick with the process to root out corruption and black money,’ he said.
He further stated that “125 crore Indians have proved that they are willing to wait in line at banks, but do not wish to be even one step behind in the drive against corruption.” He said that what would me most surprising to a majority of the citizens would be that, “Just 24 lakh Indians had admitted to having an income of more than Rs.10 lakhs,’, which was indicative of the very high level of tax eva sion being perpetrated by those not abiding by the law. Expressing confidence that the New Year would see lesser queues outside banks and things returning to normal, Prime Minister Modi said, ‘Banks have never before seen this sort of influx of cash’, and he would like to see personnel of these institutions focusing on helping the middle class and the poor.
Here are the top highlights of speech:
8% interest rate will be guaranteed on deposits of up to Rs 7.5 lakh for 10 years for senior citizens; interest will be paid monthly
Rs 6,000 to be put into accounts of pregnant women in 650 districts for vaccination and other medical use
Two new schemes under Pradhan Mantri Awas Yojana to provide 4% interest waiver on loan of up to Rs 9 lakh and of 3% on loan up to Rs 12 lakh.
Banks have been asked to raise cash credit limit to small business to 25% from 20%
Government to stand guarantee for loans up to Rs 2 crore from current Rs 1 crore, to small businesses
3% interest waiver on loan up to Rs 2 lakh for construction of houses in rural India.
Government to pay interest for 60 days on loans taken by farmers for rabi season from district cooperative banks and primary societies