DEMONITISATION

On November 8th ,Prime Minister announced 500 & 1000 notes would cease to be legal tender!

Yes, there are long queues. Yes, there is cash shortage. Yes, it is not business as usual. Yes, a few wise men think investing in Salt is tax-free, therefore buying it for exorbitant rates should be okay! But, please be patient, this is only a temporary phase. With the proposed indelible ink move (banks will ink those who have exchanged cash) there will be shorter queues. Once there is adequate circulation of new currency, things will run smoothly on the transactions front.

The Black Money guys ,imposters and touts who are queuing up for exchange of Rs. 4500 and trying to hire bank account holders, please continue doing so (it will become easy for the government to catch you). Can the black money holders exchange their 500 and 1000 notes for new notes and hoard their cash? No, the circulation of such huge sums of money in the market will take a minimum of 4-5 months and the exchange window with the banks closes on December 30, 2016.

Black Money could be exchanged with the old 100 notes if not the new ones? Yes, but with this unpredictable person heading the government, don’t be surprised if there is a move to keep a tab on those notes as well. Space constraint (100’s require more space) notwithstanding, because it is money, honey!

Opinion makers against this drive are trying to create an adverse opinion and panic. Self-proclaimed intellectuals turn into opinion makers by making use of friendly media houses that are funded by Politicians, Real-Estate tycoons, who’s who of Corporate  & MNC’s  who are yet to come to terms with this demonetisation drive.

A private bank which opened Jan-Dhan (Zero Balance Accounts) has seen deposits of roughly Rs. 300 crores in the 1^st week of demonetisation). People are clearing their outstanding loans and those who never paid property taxes have paid advance property taxes. This is also an attempt to encourage cashless transactions (to make tracking of every transaction easier and of course to make cash dealings more transparent). A transparent system should not have adverse effects on Retail/SME’s/traders. This system is to make it difficult for officials who take bribes for permissions.

There are people who are apolitical, some who hate BJP then, some who do not like Prime Minister Modi, but even they have overwhelmingly supported his decision (in private, at least). I, as a citizen of India, stand with Prime Minister Modi at this crucial juncture. Come November 16, the entire political class will unite in Parliament against this decision of our PM and demand an immediate roll back. The Prime Minister, however, will stand his ground. With an overwhelming support of citizens, this decision will inflict huge pains on those who took advantage of power and loopholes in the system. We may look for instant results in the era of 20-20 cricket but this wait will have an everlasting impact!

 

Mera Desh Badal Raha Hai!

JAI HIND.