[dropcap]S[/dropcap]uddenly Prime Minister Narendra Modi announced the demonetisation of Rs. 1000 and Rs. 500 notes with effect from Tuesday’s midnight a decision which surprised the entire nation. Within the four hours of his announcement, made these notes invalid, which is a major assault on black money, fake currency and corruption. In his first televised address to the nation, Modi said people holding notes of Rs. 500 and Rs. 1000 can deposit the same in their bank and post office accounts from November 10 till December 30. Banning these notes is definitely a welcome move, but on the other hand, gold trading is on the rise from Tuesday night as this is the safest way to convert black money into white. There should be some guidelines or limitations while buying gold in cash money. The gold prices shot up to Rs. 40,000 per 10gm in the black market whereas the official market rate was raise to Rs. 34,000. People with corrupt background are agreeing to pay this amount to jewellers with back dated bills.
In the year 1978, about 38 years ago, just after the emergency was lifted from India, then Prime Minister Morarji Desai, had decided to demonetise then high denomination notes of Rs. 1,000, Rs. 5,000 and Rs. 10,000 in a bid to combat corruption and black money. During that time too, people were as surprised by the decision as they are now. Usually, high denomination notes are the basis of any form of corruption and illicit deals related to unaccounted money. The transformation between that time and now is that in 1978, a Rs. 1000 note could buy 5 sq ft of real estate space in south Bombay, but at this moment a Rs. 500 denomination note cannot even buy an inch of that area. Those days, Rs. 1000 used to be the salary of a person, today it has become one day expense. Moreover, corruption was always present. Corruption is widespread and it cannot be stopped with such stunts.
Definitely, high denomination notes play important role in cash collection of black money by the corrupt people. However, I failed to understand that how this will put impact on the black money that are kept overseas or the famous term given to it ‘Swiss Bank’. Do we know, the ratio between currencies parked in foreign national banks and the cash collected or kept at home? This is a big question and needs to be explained by the authority. The system forces everyone to access to the banking system and replace their old currency notes with new one with limited in hand. No doubt, there will be initial hiccup in coping up with the situation. However, sudden decision of disowning the currency will put some people on life support systems. Those who are appreciating the PM Modi’s move are definitely not thinking about the poor who have only Rs. 500 or Rs. 1000 in their pocket. They are not thinking about people who are traveling or are about to travel through a bus, spending the amount in hotel to have food or in medical stores. This move is good but the government should have given some time to people to dispose these notes out of circulation.
Here, those who are thinking that PM Modi has a magic wand and suddenly everything will turn out better, then it won’t. And none of the politicians have done better work for the people of this country. You call this ‘achche din’ where the government send panic across people and make them line up in ATMs, petrol pumps and other places overnight? Moreover, introducing Rs. 2000 denomination note is not a good idea, which will boost the corruption to double than present. Mobilizing Rs. 2000 denomination note will be easier with less quantity. Rs. 2000 value note can again create tumour in our economy. Furthermore, people are suffering at present is another thing. They should have given some time. Rich people are not keeping cash at home they mobilize it by investing in real estate or other channels, but poor man really suffers with this type of moves. If the move is with the sole aim of rendering all the black money of erstwhile Congress and some other parties like SP and BSP to get an edge in UP elections, this step is not economy-centric but party-centric. If so, the move may prove costly for dishonouring the national currency for petty party politics at the cost of corporate (in)stability.
This move has affected the poor people who have no access to online transactions. Usually, old people and bedridden patients keep some liquid cash with them and very often it is in denomination of Rs. 500 or Rs. 1000. They keep it for emergency purpose like purchasing fruits or other essential commodities. They are helpless now. They have to carry their Aadhar card or other identity cards and go to banks or post offices to get new currency. Again, there is a limit to that also. Forged notes may be there, unaccounted money may exist. At least a week’s time should have been given to the common citizen. A sort of war it is. While there is no dispute about the need to demonetise high value currency to curb black money, many middle class people were sufferers, due to non-availability of funds, especially in locales far from their places, while on travel. This could have been avoided by opening counters for changing of two or three notes at strategic points in all towns, since ATMs and banks were not available.
In many places, marriages and operations were cancelled. These are predictable consequences of this action to demonetise Rs. 500 and Rs. 1000 notes. Something must be done urgently to save marriages, lives and poor people’s assets.
Anyway, let’s assume that this move will prove to be beneficial. However, here some questions are disturbing my sound sleep, and I am not getting any answer, what is the progress on Panama papers? What happened to spectrum accused? And when black money deposited in Swiss Banks is coming back?
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