In a “Thanksgiving” speech for making demonetisation a success, Prime Minister Narendra Modi on Saturday night announced a series of New Year gifts for various sections of the populace, offering sops for the construction of low cost housing and concession to farmers. The PM also unveiled some soaps for senior citizens, women and small entrepreneurs to soften the blow of demonetisation.
Modi did not make any big bang announcement and kept his focus on convincing the country that the economy was moving in the right direction and there should be no place for pessimism despite obvious hardship resulting out of the scrapping of the high value currency notes. With real estate and farm sector bearing the brunt of the demonetisation, the PM offered schemes for bringing them back on track.
Also, Modi announced raising credit guarantees for MSMEs and converting Kisan credit card to Rupay cards.
In comparison to Modi’s aggressive speeches on demonetisation, this was far a more philosophical address, though it did carry Modi’s trademark “fire and brimstone “ warnings to those involved in economic corruption and tax evasion, the PM made it clear that unscrupulous Government officials and bankers, who tried to help people convert their black money, will not be spared.
Among the sops announced in his address to the nation at the end of 50-day demonetisation period, Modi said for construction or expansion of a rural house, 3 per cent interest will be waived on loan of up to Rs2 lakh.
Announcing two new schemes under Pradhan Mantri Awas Yojana, he said 4 per cent interest subvention on loans upto Rs9 lakh and 3 per cent on loan upto Rs12 lakh.
“The law will take its course with full force. The Government will help the honest and protect them and see their difficulties are eased. How honest will gain from the Government. This Government is a friend of good people and wants to build on the good environment for the people to return to goodness,” he said.
Modi said senior citizens will get 8 per cent interest on deposits of up to Rs7.5 lakh for 10 years and deposit of Rs6,000 into accounts of pregnant and lactating women in rural areas to meet medical expenses.
For farmers, he announced that banks will not charge interest for 60 days on loans taken from district cooperative Central bank and primary societies for rabi crop.
Acknowledging the hardship faced by people in withdrawing money from banks and ATMs, Modi said all concerned in the banks have been told to focus on reducing inconveniences posed by curbs on cash withdrawals since demonetisation. But he did not say when the restrictions on withdrawals will be lifted.
The PM asked the banks to use the opportunity to break from traditional lending to priorities their lending to poor and vulnerable sections.
The PM asked political parties to move away from holier-than-thou attitude and come together to take some steps to ensure transparency and free politics of black money and corruption.
“We cannot allow this fight against black money or corruption to slow down,” he said, and added that time has come for a serious debate on breaking the endless cycle of elections and cutting down on administrative expenses by holding Parliamentary and Assembly elections simultaneously.
