HYDERABAD: Stating that it would take at least 12 to 18 months for the economy to be returned to normalcy after demonetisation, former Union Minister for Finance P Chidambaram opposed complete digital payment system in the country.
Answering queries from audience after launch of his book, “Fearless in Opposition: Power and Accountability,” a compilation of essays, here on Friday, Chidambaram termed demonetisation as a “scam”.
The Congress leader said that if a one hundred rupee note changed 10 hands in 10 transactions in day from a buyer to purchaser, no middleman would benefit out of that transaction. “The purchaser will give Rs 100 note and take Rs 100 worth goods or services. The seller will get Rs 100 note. No middleman will benefit out of this,” he said.
If the same number of transactions were done through digital mode, then for each transaction 1.5 per cent charge would be collected by the middleman. “After the same Rs 100 note changed hands 10 times in a day, the middleman will benefit Rs 15,” he said.
Chidambaram added that everyday, Rs 1 lakh crore rupees transactions take place in digital mode, then the middlemen would get Rs 1,500 crore. He added that one one could deny the right of an aged person for buying medicines by giving cash.
“Even before I saw the new Rs 2,000 note, bundles of new notes were found in the residency of the Chief Secretary in Tamil Nadu. No one, including RBI explained how politicians and officials got bundles of new notes till now. That is why I term the demonetisation a scam,” Chidambaram said.
He also slammed surveys that claimed that the public supported demonetisation. “Surveys suggested that Hillary Clinton would win the US elections. Better not to believe surveys,” he said.
Commenting on the Union Budget 2017-18, the former Finance Minister said the budget estimates (BE) and revised estimates (RE) were the same in the budget, as the Central government was confused, not knowing about extra income or doing extra expenditure after demonetisation.