Prime Minister Narendra Modi on Saturday promised stern action against bank and government officials caught with a hand in the till over the past 50-odd days in the process of exchanging old high-value currency notes.
In his address to the nation, Mr. Modi said: “In some banks, some serious crimes by people have come to light and in some places, government officers have also been seen shamelessly attempting to carry on with habitual corruption and offences. They will not be spared.”
Flagging the fact that just 24 lakh Indians have a declared income of Rs. 10 lakh, the Prime Minister said, “Either you will laugh or you will get very angry on hearing this … Can any citizen digest this fact? How long can we keep turning away from such truths?”
Assuring people that the law will come down with its full force on the dishonest, the Prime Minister said the government’s priority is to help and protect the honest.
Bitter truth
“It is a bitter truth that people’s experience with some government officers and red-tapism is unpleasant. We can no longer ignore this,” he said, adding that it’s the responsibility of officers at all levels of government to protect the rights of ordinary citizens, help the honest and isolate the dishonest.
While requesting banks to pay closer attention to the needs of the poor and smaller enterprises in their day-to-day operations, he said this was a golden opportunity for them to change their traditional approach as they had never received such large deposits in such a short period of time. However, he did not announce any timeline for lifting the restrictions on withdrawals from banks.
Mr. Modi raised the credit guarantee for small businesses from Rs. 1 crore to Rs. 2 crore, saying this would help boost job creation. Small retailers and traders would benefit from this move, which would also guarantee credit extended by non-banking financial companies.
More leeway
Banks have been directed to raise the cash-credit limit from 20 per cent to 25 per cent for such businesses and raise the working capital loans from 20 per cent to 30 per cent to the extent that such traders transact in a cashless mode.
The Prime Minister enhanced the maternity benefits given to pregnant women for pre-natal care to Rs 6,000 from the existing Rs. 4,000, and declared that this benefit would now be available for women in all 650 districts of the country. Currently, the scheme is working as a pilot project in 53 districts.
“The dawn of the New Year is bringing the resolve for new successes. Let us all work together overcoming all obstacles to create a bright future,” the Prime Minister said at the conclusion of his 40-minute address.
Poll funding reforms
While he stopped short of taking up the issue of electoral funding reforms, the Prime Minister said all debates on corruption and black money included political parties, political leaders and election funding.
“The time has now come that all political leaders and parties respect the feelings of the nation’s honest citizens, and understand the anger of the people. I urge all parties and leaders to move away from a ‘holier than thou approach’ and come together in prioritising transparency, and take firm steps to free politics of black money and corruption,” he said. He spoke about his proposal to hold simultaneous Assembly and Lok Sabha elections, and said the common man and even the President had often advocated the idea.
Calling for a serious debate, Mr. Modi said, “This is to break the endless cycle of elections, reduce election expenditure, and minimise pressure on the administrative machinery.”
Announcing a new scheme for pregnant women, Mr Modi said a nation-wide scheme would offer financial assistance of ₹ 6000. This amount would be transferred directly to the bank accounts of women who undergo institutional deliveries and vaccinate their children.
This scheme will help reduce the maternal mortality rate, in a big way and help ensure nutrition before and after delivery, the Prime Minister said, and improve the health of mother and child. Pregnant women in 53 districts were being given assistance of ₹ 4000 under a pilot project, he said.
