Narendra Modi cushions note ban, doles out sops

New Delhi: With the crucial assembly elections in Uttar Pradesh and Punjab approaching and a few days left for the announcement of the poll schedule and model code of conduct to kick in, Prime Minister Narendra Modi on the New Year’s eve announced a slew of measures for the poor, farmers, the middle class, small businesses, senior citizens and women.

The measures seem to be an attempt to offer relief to economically backward sections hit hard by his sudden move to demonetise high-value currency and push the country towards a less-cash economy.

Mr Modi’s announcement on November 8 to scrap 86 per cent of the cash in circulation to fight black money and fake currency led to a cash crunch, hitting India’s largely cash-based economy and clouding the growth forecasts. Though Mr Modi promised to restore normalcy by December-end, queues stay outside low-on-cash banks, ATM kiosks.

Modi thanks people for their support
In his televised address to the nation on Saturday, the PM thanked people for their “support” to demonetisation and acknowledged the pain they had to go through.

He said efforts were on to ensure normal banking as soon as possible. He praised bankers for their hard work, but also warned that “shameless efforts” by some to benefit would not be tolerated, referring to a string of cash seizures after Rs 1,000 and Rs 500 notes were scrapped.

The Opposition immediately criticised his speech, saying his move to promote digital transactions was an afterthought to cover up ‘no real black money windfall’.

“India has gone through a shuddhi yagna (purification ritual) since Diwali  People have shared their experiences and pain with me  It will be an example for generations Kuchh to baat hai ki hasti hamari mitati nahi,” Mr Modi said a day after the government’s 50-day demonetisation drive ended.

The scramble for cash has also caused a string of deaths, prompting an Opposition campaign against the government, disrupting an almost entire Parliament session.

The PM said his war on corruption would only intensify. “You might either laugh or get angry to know that only 24 lakh people in the country admit that their income is more than Rs 10 lakh. Every city you see has people with large bungalows and cars. Don’t you think the fight against black money and corruption deserves more power?”

For senior citizens
8 per cent interest on deposits of up to Rs 7.5 lakh for 10 years

For rural pregnant and lactating women
Centre to deposit Rs 6,000 into their accounts to meet medical expenses.

For farmers
Banks will not charge interest for up to 60 days on loans taken from the district cooperative central bank and primary societies for the rabi crop.

Schemes under Pradhan Mantri Awas Yojana
0.4 per cent interest subvention on loans up to Rs 9 lakh and 3 per cent on loan up to Rs 12 lakh.
For construction, reconstruction or expansion of rural houses: 3 per cent interest will be waived on loan of up to Rs 2 lakh.