Note-ban: Prabhu says BJP ready to pay the political price

Asserting that government is ready to pay the political price for its drive against black money, commerce minister Suresh Prabhu Tuesday left all guessing when quizzed if second demonetisation was in the offing.

Campaigning for BJP's North Goa candidate Shripad Naik, Prabhu was asked if another note-ban is required to weed out black money.

"I am not able to tell you, whether we require one more (demonetisation) or something, that depends on time. (But) I am telling you that there is total commitment on the part of the government (against black money) to take as many measures as necessary, however, difficult that may be, whatever political cost we may have to pay for it, as long as we succeed is important," the minister said.

It can be noted that the November 8, 2016 move by Prime Minister Narendra Modi to ban high value notes representing over 86 percent of the currency in circulation in a cash-dominated economy was one of the most controversial ones in his five-year regime.

The move, initially aimed at eradicating black money, among other things, was questioned more after the RBI revealed that over 99.3 percent of the cancelled bank notes returned to the system.

Supporters of the note ban have pointed out to an increase in tax base and a surge in digital transactions as the benefits of the move.

Claiming that Modi-led government is "totally committed to eradicate black money", Prabhu said black money is generated through various forms, and one type of intervention is to make systemic changes which will stop its generation.

"If you bring complete transparency in governance, people will avoid tax evasion. We are trying to make paperless and transparent system of paying taxes," he said.