The demonetisation as envisaged by the Prime Minister Narendra Modi to check the growing black money menace and the terror funding looks to heading towards a legal and constitutional wrangle which may have ramifications of larger dimensions. The Public Accounts Committee (PAC) of Parliament has summoned Governor of Reserve Bank of India Urjit Patel and has sought his views on 20th January. And after going through the replies of RBI Governor if not satisfied the PAC can call Prime Minister Narendra Modi to explain on the issue of demonetisation. Just few days after the announcement of demonetisation on 8th November Prime Minister had sought 50 days time period and had assured the nation that the situation will be normal after 50 days by December-end. But it does not look like, so the PAC has stepped in to find the cause of chaos. There is no doubt that demonetisation has impacted the country’s economy. PAC is taking a serious view over the way
re-monetisation was introduced on midnight. Some may justify the action of PM by saying to check the growing menace of black money and the terror funding such ‘sudden death’ actions are needed but even after the expiry of 50-day deadline economy has not come on even keel. In a country where there is a call drop problem and telecom facilities are not smooth, how can Prime Minister expect e-transactions would take place on mobiles. Do we have sufficient infrastructure? PAC Chairman and senior Congress leader K. V Thomas questioned. The PAC, which scrutinises the reports of the Comptroller and Auditor General (CAG), takes suo motu note of the important matters. Millions of Indians were forced to queue outside banks for hours to deposit old money and withdraw as much new currency as was permitted, causing widespread anger and raising concerns about India’s economic growth in the current quarter. While he has introduced several major reforms to Asia’s third largest economy, the cash ban is seen as his biggest political gamble to date especially with elections in Uttar Pradesh slated few weeks ahead.
