Demonetisation of Currency – A Bold Step
8th November 2016 would go down as one of the most iconic days in India’s history. Suddenly, out of nowhere, our beloved Prime Minister Shri Narendra Modi declared that the currencies of Rs. 500 and Rs. 1000 denomination would cease to be considered legal from midnight. Every one was shocked on hearing the news and thinking it might be another hoax switched on their TV sets to confirm the news. I was seeing of my elder sister and her family at the Railway station and suddenly my cell phone started buzzing with messages on Whatsapp. I never trust such messages but after confirming the news on the websites of various news channels and later on TV, I had to believe it. This sudden announcement shocked everyone. While, for people dealing with only white money, it was a very happening news, people who have stashed loads of black money were worried. The Prime Minister once again proved he walks the talk. The announcement was made in such a way that there was hardly anybody could do anything. The next day was of utter chaos with many people not knowing exactly what they had to do. There were regular announcements and clarifications made by the government at regular intervals so that the public is not misled by false rumours. There were various plans devised by some people who found it a perfect opportunity to make some more money. However, this time the government seems to be one step ahead of such people.
Impact of the Demonetisation decision
The impact of the decision of Demonetisation is very severe. It has done a lot of damage to the black money hoarders. Suddenly all the currency notes circulating as black money which are in the denomination of 500 and 1000 have been rendered useless. It has affected Businessmen, Underworld, money lenders and most importantly Politicians. Political parties use lots of black money during elections and still get away as there is no action taken. There are elections in states like Uttar Pradesh where massive amount of black money is used. This move has certainly changed the way the election will be fought. The decision has also made all the fake currencies useless. These fake currency notes have been plaguing the Indian economy to a large extent. It is the main source of funding for the terrorists and underworld who carry out anti-national activities in the country. There has been some chaos regarding the exchange of the old currency notes with new ones because of the long serpentine queues outside banks and ATMs. People are waiting for hours to get the old currencies changed but most of them are not complaining. Even the common man understands how important it is for our economy. This decision will severly impact the Indian economy in a positive way.
1. There will be reduction in inflation.
2. The real estate prices will drop resulting in affordable homes.
3. Many black money hoarders will declare their unaccounted money by paying a penalty which will result in increase in government’s treasury.
4. Fake currencies will cease to exist as the new currency notes are said to be more secure and not easy to copy.
What are the Political parties saying on the bold step?
The biggest surprise was to see political parties not saying anything on the decision. Except a few, there was no single word from some politicians who have habit of opposing each and every decision of the Government. In fact some politicians like Nitish Kumar who opposers of the Prime Minister, also welcomed the decision. However, the silence was just a lull before the storm. Soon, we begin to see politicians like Rahul Gandhi, Arvind Kejriwal, Mayawati, Mamta Bannerjee, Mulayam Singh making statements against the decision. The most prominent were Rahul Gandhi who as we all know does not understand a thing and makes a fool of himself and this time was no different and Arvind Kejriwal who is infamous for making baseless allegations and still continues to do so. These are the politicians who think the public is fool and will believe their bluff. The reality is that they are the ones who are the most affected and can see their dark futures.
Overall, barring some inconvenience, the Demonetisation is a welcome step and Indian Public wholeheartedly supporting the decision.