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          The obvious intention was that we have seen the vices of large quantum of cash currency operating in the system. Compared to what is happening in the rest of the world, the volume of cash currency of cash currency in India was extraordinarily large. Cash currency in India was almost 12.2 per cent of India’s GDP, which is extraordinarily high. Now this leads to a large number of transactions in cash which necessarily involves evasion of taxes and, therefore, a shadow economy or a parallel economy coming into existence. This also enables and facilitates crime, this also has the impact of being a facilitator as far as fake currency is concerned and also several kinds of anti-national offences like terrorism etc. survive on the strength of cash currency. Cash currency also creates an increased temptation for corruption in a society and the object was that we must move towards to a greater digitalized economy, compress the extent of cash component in the economy itself and, therefore, free the economy to the extent possible from these vices that I have mentioned.

          This action was taken to check running of a parallel economy by anti-social elements. It was felt by the Government that such notes are declared illegal. The demonetization step has been strengthened by this Bill. It will facilitate a proper merger of our shadow economy with the formal one. The hon. Prime Minister had announced on 8th November, 2016 that Rs. 500 and Rs. 1,000 notes will hereafter stand null and void. In fact, this move was welcomed by several parties as it strengthened India’s attack on corruption, money laundering and financing of terrorist activities.

          Sir, I may be permitted to mention here that in a letter to the hon. Prime Minister dated 12th October the hon. Chief Minister of Andhra Pradesh Shri N. Chandrababu Naidu pointed that since most parallel economy transactions are done by using Rs. 500 and Rs. 1,000 currency notes, demonetizing them will make it difficult for hoarders to do large cash transactions and significantly reduce black money in the system. Demonetization would leave currency hoarders with no option, though the same is much more difficult to enforce. I thank the NDA Government for accepting his suggestion.

          So, when Prof. Saugata Roy asks as to what is the harm if I keep large quantities of demonetised notes with me, the harm is that if we went by your suggestion, it would be anarchic in character because India would then have a non-legal tendered currency parallely operating in the market. And no economy in the world allows possession of a parallel economy or a parallel currency which can operate in the market. That is why, the only currency which can operate in the market is the currency which the Reserve Bank of India has authorised.