Eleven lakh crores of higher denomination currency out of a possible 14.5 lakh crores have already been deposited in banks which makes economic commentators believe that demonetization has been a failure but I beg to differ with their views. Even if the entire currency gets deposited by year end, this would be a great fillip for banks and the economy. The parallel ‘cash currency’ or black money business would die a natural death and now the huge money in banks would be used for businesses that would be taxable which means lot of money for the government in future. Tough government stands means people would no longer indulge in illegitimate trade and business and everything would be ‘Black and White in future’. Also, atleast 50 per cent of the deposited money is ill-gotten wealth that would attract huge fines and penalties which would mean more money for government to spend on public welfare programmes. Fake currency would be out of circulation and that would mean less acts of terror. My only fear remains that generation of black money should not be allowed in future with tough measures and if we can contain them, Indian economy would grow multi-fold and we would become an economic superpower in the years to come.
S.N. Kabra
(The views expressed by the author in the article are his/her own.)
