New Delhi, April 26: Prime Minister Narendra Modi defended demonetisation of Rs 500 and Rs 1000 currency, rejecting reports of job loss due to the move. In an interview to Aaj Tak on Friday, PM Narendra Modi demonetisation did not cause a rise in unemployment but curbed the flow of black money. The prime minister on November 8, 2018, had demonetised notes of Rs 500 and Rs 1000, scrapping 86 per cent of available currency notes.

"Those who claim there was job loss due to demonetisation don't have stats to back it. People are looking for excuses to discredit the huge decision of demonetisation. People are looking for excuses to discredit the huge decision of demonetisation," PM Modi said. Listing benefits of note ban, the prime minister said the decision changed the mindset of people. 50 Lakh Jobs Lost in Two Years Post Demonetisation, Finds SWI 2019 Report on Unemployment.

"There were photographs of money being taken out from inside cots, jute bags kept in the garages of corrupt politicians and bureaucrats...Benami properties worth Rs 50,000 crore were seized. More than 3 lakh shell companies have been shut down," he said. "There is a realisation that days of black money have ended and we have to do business honestly. Tax collections have increased. Some of the credit for low inflation goes to demonetisation," he added. Demonetisation Will Hit GDP, Won't Curb Black Money, RBI Told Modi Government.

Asked whether he looks at demonetisation as his biggest success or failure, PM Modi said, "Demonetisation wasn't done for elections. Our opponents in Uttar Pradesh fought on the issue of demonetisation but the people of UP gave a slap on their faces that now they don't even talk about it. They are still crying about it because they have lost a lot."

Last year, Reserve Bank of India’s (RBI), in its annual report, revealed that almost all the Rs 500 and Rs 1,000 currency notes scrapped in November 2016 returned to the banking system. Out of the Rs 15.41 lakh crore in circulation before November 8, 2016, Rs 15.3 lakh crore came back to the banks, which was 99.3 percent.

(The above story first appeared on LatestLY on Apr 26, 2019 09:16 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).