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A huge debate regarding "Demonetization" is going on in the country. Even in offices and our daily routine, we are witnessing its impact.

On 8th November Mr. Modi played what was thought to be a master stroke against black money. Everyone praised it. Yes, it indeed was a brave step. But has implementation been good? Let's see:

What's the scenario?

Every other day, there's some announcement regarding withdrawal, use of old currency notes. It has created so much confusion that even bank employees are not sure about the limits.  Huge lines are being witnessed in banks and ATMs which run dry after few hours. If you write or say something against this schemes, you are labelled as corrupt. I mean, is this democracy? Even govt is not sure about their step and that's why they keep on changing rules every day.

Has it been able to control black money?

We are hearing that about Rs.2000 fake currency notes have come into circulation in huge numbers. Now see those lines in front of ATMs or Banks. A hawker, a person who has to depend on cash for its daily routine is standing in those ques. Is he a black money holder? There are news about people who are converting the black money into white money. So do you think that this step has eradicated the black money menace? A clear window of 50% has been given to black money holders now. Pay 50% to the govt and you are allowed to keep 50% of what you earned illegally. 

There are smaller cities where banks don't have adequate branches. Now imagine their plight. Without adequate infrastructure they are suffering.

What could have been?

I wish Mr. Modi had first of all, disallowed all cash donations to political parties. Let them receive those donations through cheques. Those named in Panama Papers should have been investigated first. A proper planning should have been there first, even if confined to PM and his close aides. ATMs have issue regarding size of Rs.2000 notes. Why wasn't it sorted earlier? Imagine after Rs. 100 note, the next denomination was of Rs. 2000. What if you had to pay Rs. 1500 to someone? Rs. 500 currency note has still not come into circulation in a way it was needed.

What's the future?

We all know how it has hampered small business houses. In future, we will see more unemployment or under employment.

We want cashless economy, but are we ready for it yet? There is an issue of cyber security, proper bank accounts. People know how marriages take place in India. Tent owner, confectioner or Pandits take only cash. Even Mr. Amartya Sen has raised his concern about this. It's taking steps backwards.

It's my take on this issue, you can have a different take on it and I will welcome sane debate on this.


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Category Others, Other Articles by - CA ANURAG 



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