Wednesday, 23 November 2016

Demonetization: An Incredible Action?

10 Nov 2016, as the announcement goes on air about banning note of 500 & 1000  Indian currency , the flow of life for everyone especially common man turned into long queue's in next 3 days. Suddenly a shocking announcement might bring black money out but it also brought mountains of troubles.

ATMs across India turned into prime spots on Wednesday night as Prime Minister Modi surprised everyone by announcing the government’s decision to demonetise the Rs 500 and Rs 1000 notes. Tensions were high as the midnight approaches, at that point Rs 500 and 1000 note lose their monetary worth, in government’s attempt to fight the reality of black money. In his official statement declaring this dynamic move, Mr. Modi said it was a government initiative to curb “financing of terrorism through the proceeds of fake Indian currency notes and use of such funds for subversive activities such as espionage, smuggling of arms, drugs, and other contraband into India.” 

Primarily, it aims to hit hard at the existence and circulation of black money in the country.

Considering the short notice of this initiative, the government has allowed a few options into how Indians can make use of the remaining value of the notes. One of these is the provision for Indians to exchange their existing Rs 500 and 1000 notes at bank branches for smaller or larger denominations for the next couple of months. They ruled that it isn’t necessary for these individuals to have an account in the said bank, thus enabling lower-income groups to make use of the same. Another is their launch of the new Rs 2000 note to replace the Rs 1000 one, while the Rs 500 note is set to get a makeover.

Although the move has been applauded by many who have spoken out against the existence of black money in our country, short-term disruption has broken out across the country, considering the suddenness of the move. The banks, which resumed operations last week, were jam-packed, and many who stood in line for hours, cutting work-hours and otherwise, left in exasperation. In a side-lined move for cashless services to make hay while the sun shines, many e-commerce companies are temporarily refusing to offer the ‘Cash On Delivery’ option as well. Even though most officials associated with the national banks have hailed this a “super move” on Modi’s part, many economists are doubtful of the effectiveness of the measure and the results it will garner in the long-run.

In order to fight against black money, government's decision without complete preparation bring troubles for the common man.This decision has taken their train out of the platform.Instead of their business and work they have to stand in the queue. Black money is exchanged by buying bank accounts of poor people. Even after being in queue for a long time, unavailability of cash makes life harder and worse. The Government must have given this another thought because in the end who selected government are suffering the most.

Written by Pragati Jain
Grew up in Indore, M.P. I am pursuing B.E. in Electronics and Communication from Medi-Caps Indore. I love writing, sports and playing piano.

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