RBI should prove credibility of demonetisation: VP

Vice President M Venkaiah Naidu on Monday urged the Reserve Bank of India to prove credibility of the money deposited in banks after the Centre's demonetisation move at the earliest in order to maintain the credibility of the reform.

"Banking in India was confined to very few people earlier. I remember when Prime Minister (Narendra Modi) mentioned in the Cabinet meeting that we must open bank accounts for all. I, as a senior, responded, 'Yes sir, we will do it in five years.' The Prime Minister said, 'No. It should be done in one or two years'," Naidu said at the Centenary Celebrations of The New India Assurance Company Limited here.

"At the end of the day, 34-36 crore bank accounts have been opened by the same people, same banks. It shows the change of mindset, change of leadership, it is the drive that makes all the difference. But, there is no dearth of cenacle people in this country and we inherit it from the British people. They have not only ruled us, they have also ruined our minds before going. Few people said if there is no money what's the point of opening bank accounts? But many people realised the importance of bank account on November 10, 2016 (when demonetisation was announced by PM Modi)," he added.

The Vice President said that the demonetisation move is "proving to be very useful" now.

"However, another cenacle said what profit has demonetisation got? What's the purpose of demonetisation apart from fake notes, black money? The purpose was to bring the money to the system," he said.

"It is now upon the Reserve Bank of India, the Income Tax people to prove that the money which has come back to the banks - whether it is white or black. That should be done at the earliest so that the credibility of these reforms will be maintained. This is my advice to the RBI and other agencies involved," Naidu added.

Meanwhile, Naidu said India is being "recognised and respected worldwide" under the regime of Bharatiya Janata Party (BJP).

"The Prime Minister of India or other leaders of the country get maximum attention and appreciation wherever they go. I have been minister for some time now. I was an urban development minister earlier as part of which I used to receive foreign delegations. Every one of them showed interest in investing in every sector of India. They feel we have better opportunities," he said.