Thanjavur: Demonetisation of Rs. 500 and Rs. 1,000 currencies is nothing but a measure taken by Narendra Modi to wipe out the retail trades and help the online trade, alleged T Vellaiyan, President, Federation of Tamil Nadu Traders Associations.

The Central Government permitted Foreign Direct Investment (FDI) in retail trade which is the largest trade only next to agriculture in the country, Vellaiyan told media persons here last night.

Vellaiyan alleged that they brought in online trade in a bid to embezzle the retail trade. Government also supported the online trade. Despite all these onslaughts, retail trade could not be wiped out and it managed to survive. Therefore, Modi has now announced demonetisation of Rs. 500 and Rs. 1,000 currency notes under the garb of launching a crackdown on black money, in a bid to stall the money circulation/flow towards the retail trade, Vellaiyan alleged.

The Prime Minister now says that people should use debit and credit cards for purchase and other business transactions to crack down on black money. There are several investigation agencies in the country to find black money, Vellaiyan said.

Vellaiyan said that only after the announcement of demonetisation of high valued currency notes all cash-based business has halved while online trade has increased.