8th of November, 2016 has become a date of historic importance for India as the country witnessed a majestic and so far the boldest move taken by the Prime Minister Narendra Modi of the country on this date. The Government decided to put out of circulation the Rs.500 and Rs.1000 denomination notes by terminating them as legal tender. The decision naturally shocked the nation as the declaration came around 8 pm and the country was given time till
midnight (of 9th November,2016) after which the currency would be legally banned. Moreover, the government gave a time period of 50 days to deposit and exchange old notes.
Many people welcomed the move, while many questioned it.
If I speak for myself, I have never been BJP supporter. But I am not prejudiced against any party, any political personality, or any bureaucrat.I am not oblivious of the inconvenience it is causing. But It is very important to get a complete view and understand the larger goals that the demonetization intends to achieve.
Currency ban will achieve five goals–
1) Target the black money,
2) Render the fake currency and black money used for illicit trade,
3) Terrorism and unlicensed arms useless,
4) Check the imbalance of currency circulation,
5) Make the banking structure less cash based by drawing more and more people’s money into the banking system and make them use plastic money, and the government will also be freed of the liability to honour that black money.
This big a decision is also bound to cause inconvenience in an economy which worth trillions of rupees. I will now put in the frame the questions that have been raised:-
1) What about the real black money hoarders, the richest people of the country who have their black money deposited in the Swiss bank? Who & when will bring back the money from Swiss bank where the actual real black money is? When the PM Modi could not bring back that money he is using these ploys just to distract the innocent citizens of the country.
2) The planning was not up to the mark.The government hadn’t printed enough notes and there was lack of planning regarding the recalibration of ATM machines.
3) It is the season of marriages,this had ruined everything for families. They are facing cash-crunch when so many preparations are left to be done.
1) Around 14 deaths have occurred as people as falling ill standing the queue all day. Who will account for those?
2) What about the farmers? It is the harvesting season and they mostly deal in cash.
3) Small businesses, vendors, informal sector will be crippled. Poor women, domestic helps who all have their whole life’s savings in a small bundle of cash, who don’t have a bank account, what will they do?
4) The government should have come up with a strategy that is long-lasting. This isn’t one.
Many such questions on economic development, major fall of the currency, current business sectors are being and will be slapped on the face of the government. But I just do not understand why do the literate Indians behave so irrationally at a time when they should be whole-heartedly supporting the courageous move which no previous
government could dare to take when they knew that in every 10 Lakh notes there are 250 fake notes which counts around 2000 crores fake notes circulated till 2009.