PM rolls out slew of reforms, schemes to benefit poor; asks politicians to let go off 'holier than thou' approach

New Delhi: Prime Minister Narendra Modi on Saturday addressed the nation, in which he spelled out the roadmap ahead after the deadline of depositing demonetised notes expired on Friday. This was his second address to the nation since his announcement in a similar address on November 8 to scrap old Rs 1,000 and Rs 500 notes.

Modi set out a stern warning of tough action against the "dishonest" people even as he announced a slew of sops for senior citizens, farmers, rural housing, women and small entrepreneurs to soften the blow of demonetisation. Prime Minister Narendra Modi said India has set a new example for the world through this 50-day-long demonetisation exercise, adding that their commitment and discipline to tackle the cash crunch would be a living example for generations to come.

Also Read: PM Modi's New Year Eve speech: As it happened

"This is the first instance in India`s history when the government and the people have fought shoulder to shoulder. I got thousands of letters from the people who shared their pain, but they reaffirmed their resolve to stick with the process to root out corruption and black money," said Modi.

He further stated that 125 crore Indians have proved that they are willing to wait in line at banks, but do not wish to be even one step behind in the drive against corruption. He said that what was most surprising to a majority of the citizens would be that just 24 lakh Indians had admitted to having an income of more than Rs.10 lakhs, which was indicative of the very high level of tax evasion being perpetrated by those not abiding by the law.

Expressing confidence that the New Year would see lesser queues outside banks and things returning to normal, Prime Minister Modi said, "banks have never before seen this sort of influx of cash", and he would like to see personnel of these institutions focusing on helping the middle class and the poor. He said that the notes ban has seriously impacted black money and terror-financing.

He also assuaged the honest people that the government will act as a friend to them so that their difficulties are eased.

Slew of sops announced

Among the sops announced in his address to the nation at the end of 50-day demonetisation period, Modi said senior citizens will get 8 percent interest on deposits of upto Rs 7.5 lakh for 10 years and deposit of Rs 6000 into accounts of pregnant and lactating women in rural areas to meet medical expenses.

For farmers, he announced that banks will not charge interest for 60 days on loans taken from district cooperative central bank and primary societies for rabi crop.

For construction or expansion of a rural house, 3 percent interest will be waived on loan of upto Rs 2 lakh. He also said that rabi crop sowing was up by 6 percent and fertilizer sales up 9 percent despite doomsday predictions by critics.

Announcing two new schemes under Pradhan Mantri Awas Yojana, he said 4 percent interest subvention on loans upto Rs 9 lakh and 3 per cent on loan upto Rs 12 lakh.

He also said that government will take stand to guarantee for loans upto Rs 2 crore from current Rs 1 crore, to small businesses. Banks have been asked to raise cash credit limit to small business to 25 percent from 20 percent, said Modi.

Eight percent interest rate will be guaranteed on deposits of upto Rs 7.5 lakh for 10 years for senior citizens and interest will be paid monthly, said Modi.

Rs 6,000 to be put into accounts of pregnant women in 650 districts for vaccination and other medical use, announced the prime minister.

Honest to gain from government

"The law will take its course with full force. The government will help the honest and protect them and see their difficulties are eased. How honest will gain from the government. This government is a friend of good people and wants to build on the good environment for the people to return to goodness," he said.

Acknowledging that "serious offences" have been committed by some bank and government officials taking advantage of situation, he said "they will not be spared".

All concerned have been directed to restore normalcy in banking system, particularly in rural and far flung areas, to end difficulties of people, expressed PM.

Modi also said that demonetisation has caused deep infliction on blackmoney, terror, human traffickers and counterfeit currency.

Prime Minister requested debate on holding Parliamentary and Assembly elections simultaneously and issue of rising costs in polls. PM also asked political parties to take steps to end blackmoney in funding and corruption.