Demonetisation helped banks improve their fund situation: Jaitley

Union Finance Minister Arun Jaitley on Tuesday said the demonetisation move allowed banks fetch in huge amount of money that would help the government to undertake welfare measures.

Addressing the BJP parliamentary party meeting here, Jaitley said as a result of demonetisation decision, "huge amount" of money has come to the banking system, which will help the state exchequer and the banking system.

"Such inflow of huge amount only helps to increase the banks' ability to invest more in development works and to give loans for agriculture and rural development. It is hence only natural that the loan interest rate will be less," Jaitley said, adding the banks have already started reducing the loan interest rates.

Jaitley, the leader of the House in the Rajya Sabha, said: "We took the opposition by surprise in the Rajya Sabha and said we we were ready for the debate immediately. Caught unawares now, the opposition has only changed their strategy and are running away from debate."