Demonetisation A New Sunrise

Two weeks after Prime Minister Narendra Modi’s move to scrap Rs 500 and Rs 1000 notes to counter black money, counterfeiting and corruption, the rush at banks, ATMs and post offices is easing and also people’s optimism prevails across the country.

Millions of people are using banking or electronic payments for the first time as a result of demonetisation, creating long-term benefits for themselves and the economy at large. The government might be in for a windfall if a substantial amount of cancelled money fails to make it back to the central bank. Some experts suggest the Reserve Bank of India could transfer an equivalent amount of money to the government as a dividend. Those hoarding undeclared cash are facing  some form of punishment for the first time.

Demonetisation is leading to a massive transfer of wealth from the affluent to the lesser well-off. The most efficient way emerged to launder money is to place old 500 and 1,000 rupee notes in the account of low-income earners and withdraw new currency once it becomes freely available, leaving an agreed percentage behind. Finance Minister Arun Jaitley has promised there will be no enquiries made for cash deposits lower than 2.5 lakh, providing a convenient threshold for individual deals.

Delhiites’ voice on demonetisation

 Although my shop is closed and I am not able to pay either the workers or the traders who supply us, I think PM Modi’s step to curb black money is very good move.

Muhmamad Rukman, 35, Shopkeeper, Laxmi Nagar

I am standing in the queue with a 20,000-rupee cheque but I know I could not be able to withdraw all the money. I need. But I have to manage my expenses with the existing money. There should be a separatate line for senior citizens in banks and ATMS.

Ram Kumar Gupta, 65, Private Job, Nirman Bihar

 Demonetisation of 500 and 1,000 rupee notes has the making of a game changer. At one stroke, tax evaders and others who were not keeping their wealth in gold, land or dollars were dealt a lethal blow. Some would distribute currency to their relatives or servants but for the larger operator, this has a  limited scope.

Sandeep Aggarwal, 23, Civil Engineer, South Delhi

 There are some tricks  through which  people can  swap their black money into new money. It will reduce the amount of black money recovered. So,  the government needs to check it strictly, otherwise the common man’s suffering will be  in vain. However, I am proud that I am a part of the nation building process.

Ganesh Jha, 28, CA Student, Sarita Bihar

Prime Minister Narendra Modi proved he is nobody’s puppet. The move came as a shock to his core constituency, causing substantial losses to traders across the nation. It was a bold and brave step from a political perspective.

Priti Singh Kushwaha, 30 , Journalist, Mayur Vihar, Phase III, Delhi

For decades, the poor have been suffering in search of two square meals.   The poor and underprivileged people are accustomed with politicians’ tall claims like Garibi Hatao, Indian Shining, Bharat Nirman, Make in India etc.  However, poverty, the unending epidemic of India, is showing no sign to cease.  But the twist of the irony is that politicians never stop playing politics in the name of the poor.  After Prime Minister Narendra Modi’s declaration about the demonetization of 500 and 1000 rupees notes, Oppositions’ crocodile tear is the latest example of dirty politics in the name of the poor.

Acclaimed-writer Chetan Bhagat wrote on social networking site, Facebook on demonetisation that it shows government’s seriousness to tackle black money. This signaling effect alone is a huge benefit to the nation where many evade taxes. It will ensure a significant part of the black money gets back to the government. It is not true that nobody gains from the money burnt/thrown away.  The old money not swapped in banks is effectively the government’s profit,  say 16 lakh crore of total money existed in old notes, and only 13 lakh crore come back. For remaining 3 lakh crore, the government can print new notes, and keep with itself. Hence, the government does stand to make a lot of money in this, which can be then used for the people.  It is nice to see a PM who works, has innovative ideas and wants to make a change. We have had leaders who sat quietly and did little. It is good to see a man of action. At the same time, like any policy, there are some issues.

“Monthly income of families of our village is around four to five thousands. So, there is no drop on consumption or chaos in our village due to Prime Minister’s attack on black money. The hype and noise by politicians in the name of poor’s suffering is an utter nonsense.  Whether Indian economy surges or not, inconvenience or not due demonetization, Narendra Modi  will be considered as the first  prime minister of the India, who really hit hard on black money hoarders,” said  Keshav Gond , a sarpanch and tribal-activist from Nabaragpur district, Odisha.

“Fake currency rackets have completely demolished after PM Modi’s announcement on the eve of November 09, 2016.  From Multan to Malda, the economy of guns, drugs and terror faces a bleak prospect.  Even our Prime Minister has reportedly said that unaccounted money used in real estate and land deals will be targeted. We need similar plans for gold and foreign exchange in hawala. The sooner the government shares the details of its pre-emptive plans for the possible illegal activities, the more the ordinary people will feel comforted that their pain is not in vain. If we selectively hit at black marketers, a general demonetisation may not have been needed, but that is another story,” said Samapika Mishra, an MBA student of Xavier Institute of Management, Bhubaneswar.

by Sanjay K Bissoyi