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The purpose of demonetisation was to bring the unaccounted money into banks. “Money lying in various places has come to banks with a proper address,” Vice President Venkaiah Naidu said here on Wednesday.

He was speaking at the 160th anniversary celebrations of Cochin Chamber of Commerce and Industry.

More than 58 lakh people have joined the ranks of the Income Tax payees post demonetisation. “There will be more additions and once the tax net is widened, the tax rate will come down,” Naidu said.

The Vice President said India was the most favourable investment destination now in the world and there was a need to give a push to reforms with human face. “Soon after Independence the government started many factories and public sector undertakings. But a lot of change has happened and the Government had to bring in investments. Why should investors be discouraged to invest in a country where foreign direct investment is allowed. The people can get benefits only if the country becomes prosperous,” he said..

He urged to State Governments to encourage private investment. “The most important thing is to ensure ensure peace in the country which is essential for growth. Importance should be given to nurturing culture without any communal bias. Some people are misinterpreting religion and are creating division in the society,” the Vice President remarked.