New RBI rule hits poor, middle class, says P Chidambaram

RBI makes new rule on deposit, FM contradicts. Who should citizen believe, Chidambaram questioned.

New Delhi, Dec 20: Former Finance Minister P. Chidambaram on Tuesday said the new RBI cap on deposits of demonetised currency had left the poor and middle class high and dry.

"Desperate government resorting to desperate measures," the Congress leader tweeted in reaction to the Reserve Bank of India's decision to put curbs on deposits in banks of the old currency.

He said the RBI announcement of Monday that people cannot deposit over Rs 5,000 in 500 and 1,000 rupee notes more than once amounted to breaking Prime Minister Narendra Modi's promise of November 8 and Finance Minister Arun Jaitley's assurance of November 11 that all the demonetised currency will be accepted till December 30 without any restrictions.

On Tuesday, Jaitley clarified that people won't be questioned if they deposit old currency of any amount at one go.

"RBI makes new rule on deposit, FM contradicts. Who should citizen believe? Neither has credibility," Chidambaram said. "Hoarders have laundered their old notes. The poor and middle class left high and dry.

"Old notes usable until December 15. Why can't we deposit remaining notes until December 30 as notified?" he asked.

IANS