Abolish Rs 500, Rs 1000 notes to wipe out black money: Chandrababu Naidu

Noting that politics has become a "shelter" for corrupt people, Andhra Pradesh Chief Minister N Chandrababu Naidu on Wednesday reiterated his demand for immediately abolishing currency notes of Rs 1000 and Rs 500 denominations to curb black money in the country.

"Politics has become a shelter for corrupt people and black money earners. Some people who are in politics are misusing the people's mandate. I'm writing a letter to the Prime Minister today asking that Rs 1000 and Rs 500 notes be abolished and total bank transactions be encouraged," he said at a press conference in his new office at Velagapudi.

The Chief Minister said once these currency notes are abolished, it would also put an end to "buying of votes".

"In course of time, we have to go for total bank accounts. We have to bring in that culture. One, you have to regulate and two, you have to bring in that culture. Then it will curb the evils," Chandrababu said.

"A smartphone is enough to deal with everything. Be it shopping, travelling, money transaction or even if you have to spend money abroad, a smartphone is enough," he said.

Referring to the Centre's recent income disclosure scheme, the Chief Minister said an effort was made (to unearth black money).

"Out of the Rs 65,000 crore disclosed across the country, Rs 13,000 crore was declared in Hyderabad and, out of it, Rs 10,000 crore by a single individual. Who is that, we can't know according to law. Is it possible for a businessman to declare such huge money," he said.

"In the future, in 2-3 or 5 years, they will again regularise black money, depending on their need. You just pay 40-45 per cent penalty and the rest becomes white. Isn't that better ? Nobody can question. Now, there will no social stigma as well," Chandrababu said.

"If compulsory bank transactions were introduced, it would eliminate the need for money. The lust for money will also be gone and then everybody will earn money in a genuine way," he added.

Stating that India was the only country that could achieve double digit (economic) growth in the future, the Chief Minister stressed on the need for totally eradicating black money.

"We are the biggest market in the world. After the Chinese economy diminished, the world is looking towards India. We are very strong in technology, we have the demographic dividend and also leadership. India is in a position to become a superpower," Chandrababu said.