Demonetisation saved India from 2008 US-like crisis, says its votary

By 

Krishna Kumar

ET Bureau Sep 2 2017

MUMBAI: Anil Bokil of Pune-based Artha Kranti Pratisthan, an early votary of demonetisation, has defended the benefits of the move. Bokil told ET that there was a huge ‘cash bubble’ and if demonetisaiton had not happened, India would have been hit like the 2008 subprime crisis in US. 

Calling the criticism by political parties over the RBI report as ‘politically interpreted’ Bokil said, “what was happening was simple, since less taxes were being collected, the governments over the years had printed more cash, this had led to a huge pile up, cash was being used for every transaction…Since there was cash bubble with far worse consequences,” he said. 

He claimed that demonetisation was necessary as the Indian rupee was being eroded by the presence of fake notes. “What has been done is fencing of the economy. This was not just about curbing black money, there were many other facets involved, like fake currency, inflation. The cash was being used by anti-social elements. The government had to do it because it’s prime responsibility was to secure the nation,” Bokil said. 

In 2013, Bokil had made a presentation to then Gujarat chief minister Narendra Modi on why demonetisation had to be done. He said he made a presentation to then prime minister Manmohan Singh too much before he made the presentation to Modi. 

When asked about the number of people who allegedly died during demonetisation, Bokil said, “this will happen in a country like India, we are too sensitive. This is the cost of change.” 

Anil Bokil claimed that demonetisation was necessary as the Indian rupee was being eroded by the presence of fake notes. 

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