The International Monetary Fund on Friday expressed its support for India's demonetisation exercise against black money, but said the transition needs to be executed “prudently” to ensure minimum inconvenience, PTI reported. On November 8, Prime Minister Narendra Modi said Rs 500 and Rs 1,000 notes would no longer be legal tender. New notes of Rs 500 and Rs 2,000 were introduced on Thursday.
IMF’s spokesperson Gerry Rice said, “Given the large role of cash in everyday transactions in India’s economy, the currency transition would have to be managed prudently to minimise possible disruption.”
The Centre’s decision drew severe criticism from several sections including political parties. Bahujan Samaj Party chief Mayawati on Thursday called the move selfish and questioned its timing. Samajwadi Party chief Mulayam Singh Yadav said the government’s decision has led to anarchy in the country. While West Bengal’s Mamata Banerjee referred to the move as "draconian” and demanded a repeal of the decision.
Economic Affairs Secretary Shaktikanta Das had said that all denominations of currency, including Rs 1,000 notes, will be reintroduced with new designs and features from time to time.
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