Banning high denomination notes an 'ineffective' measure: CPI(M)

The Communist Party of India (Marxist) on Wednesday criticised the Centre's move of banning high denomination to combat the menace of black money, saying the measure adopted by Prime Minister Narendra Modi led-government is an ineffective one.

"This measure is not going to be an effective one to unearth black money. It is more of a political posture adopted by the Prime Minister whose record of two and half years is a record of failures as far as the economy providing employment and development is concerned," said Karat.

Joining the chorus of protest against the Centre's move to demonetise Rs 500 and 1000 notes, Congress vice-president Rahul Gandhi earlier today asserted that ordinary people in the nation have been thrown into chaos and asked Prime Minster Modi as to how replacing notes makes black money hoarding harder.

Expressing his ire on Twitter, Rahul Gandhi said that this step was a testimony of how little the Prime Minister cared about the ordinary people including farmers, shopkeepers and housewives.

"While the real culprits sit tight on their black money stashed away abroad or in bullion/ real estate. Well done Mr Modi. One Q for the PM: How is replacing 1000 rs notes with 2000 rs notes going to make black money hoarding a lot harder? #Modilogic," he stated.

In a surprise late-evening televised address to the nation, Prime Minister Modi said the notes in circulation can be exchanged at banks till December 30th, adding that some concessions will be allowed for use of these notes at hospitals and crematoriums, and to buy air, rail and bus tickets till November 11th.

But the short notice sparked concern among people who then formed long queues outside ATMs across India, attempting to withdraw smaller bank notes.

"Banks will be closed tomorrow. It will cause some hardship to you. Let us ignore these hardships. In a country's history there come some moments when every person feels he too should be a part of it," the Prime Minister said.

A majority of citizens, including Dalal Street experts have lauded the government's demonetization of Rs. 500 and Rs. 1,000 notes.

However, the move is expected to hit many sectors such as real estate and jewellery, where cash transactions are widespread.

Sectors like real estate and jewellery that use more of black money will take a big knock after Prime Minister Narendra Modi's massive crackdown with the withdrawal of Rs. 500 and Rs. 1,000 notes.

Real estate stocks have taken a pounding in early trade as the sector is expected to feel the heat of the government's move.