NEW DELHI (TIP): The black money stacked in beds and pillows has come back to the banking system, thanks to demonetization, Vice-President Venkaiah Naidu said on November 30.

The government had scrapped about 86% of the high value currency notes in form of ₹500 and ₹1,000 in November 2016, leading to cash crunch for several months.

Almost 99% of the demonetized currency was returned into the banking system, as per Reserve Bank data.

“Now banks again have money in India because all the money that was there — some that was there in beds and also pillows, bathrooms — has come back to banks. There is a debate going on, I don’t want to get into that political debate because I am not in politics now,” said the Vice-President.

He further said he has retired from politics, but not retired from public life

Mr. Naidu was speaking at a conference on small and medium enterprises (SMEs) organized by WASME in New Delhi.

“The money has come back. Some people are raising questions as to what is the purpose of the so-called demonetization. As an ordinary citizen of the country I understand that was the purpose. The money has come back to banks with address. How much is official, how much is unofficial… that will be decided by the Reserve Bank,” he said.

The Vice-President stressed that banks need to take care of the MSME sector, which is giving maximum employment.

Mr. Naidu emphasized that SME development needs to be centered around sustainability. He added that alleviation of poverty while simultaneously creating employment and wealth by following the principle of inclusive growth was the only way towards a peaceful world.

In the context of sustainable development goals (SDGs), the development of SME sector must be primary development agenda of national governments “so as to address the critical issues around economic growth, job creation, social stability, and environmental protection”.

(Source: PTI)