New Delhi: Finance Minister Arun Jaitley today said government’s decision to demonetise the 500 and 1000 rupee notes is good for country’s economy which will rid the nation of black money and corruption.

In an exclusive interview with Doordarshan News, Mr. Jaitley said black money is not a fundamental right of the people, and those who have not earned money with honest means are now worried. Explaining the rationale behind the decision, Mr Jaitley said as countries develop, economy should be cashless and transact through cheques and plastic currency.

The Minister said deposits in banks will now increase and banks will have more lending capacity. He said official transactions will increase which will impact indirect and direct taxes in the long run.

Finance minister said the positive impact will be more and more transactions would come to bank.

He said India will become tax compliant society. Mr Jaitley said this is the first time government has taken a decision which has many many advantages. The Minister said move to withdraw 500 and 1000 rupee denominations will help in cleaning up the process of political funding. Mr Jaitley also said replacement of currency will be done in three to four weeks.