Agra, Nov 21 (KNN) Assuring that the money deposited with banks post demonetization will not be kept idle, Prime Minister Narendra Modi said Banks will have to extend loans for all sorts of economic enterprises. The assurance seems to bring some financial inclusion in the credit-hit MSME sector.

Not only this, Modi also assured that the banks “will have to” bring down the interest rates.

While addressing a BJP rally in Agra on Sunday, PM Modi said, “Over Rs 5 lakh crore deposited with banks (since the announcement of demonetisation on November 8) is not going to be kept idle."

He added, "Banks will have to extend loans for all sorts of economic enterprises... for which they will have to bring down interest rates."

The PM said banks would not keep the money deposited with them in some “vault”, but give cheaper loans to set up small businesses. “The poor and middle classes will get bank loans at cheap interest rates,” he said.

 PM was optimistic that the money recovered because of “note ban” will help government provide housing to the poor in rural areas by 2022.

He also advised the poor to not let their Jan Dhan bank accounts be misused. Modi asked people not to allow others to deposit Rs 2.5 lakh in their accounts, with promises of getting a cut.

“The law is strict. The account owner will get punished,” he warned.

PM during his speech repeatedly referred said that the “middle classes” will benefit from demonetisation in the form of cheaper loans from banks, better education for their children and cheaper homes.

On the inconvenience and chaos created due to demonetization, Modi said “I promise that your dreams will become a reality. I had asked for 50 days. I had forewarned that this will lead to some inconvenience, but I am surprised that the people of my country have supported me despite the inconvenience.” (KNN Bureau)