None of the media persons would have thought that they are gonna cover a historical move when Prime Minister Mr Narendra Modi was about to address the nation on November 8 2016. Prime ministers move created a long lasting impact on country's economy and also made the whole world sit up and take notice of it
Though this is not the first time when such a bold step with an aim of flushing out black money had been implemented in india. In January 1978, 38 years ago the then PM Moraji Desai's Janatha Party government had demontised Rs. 1,000 Rs.5000 and Rs 10,000 notes. But that was a completely different step when compared to the present when these high value notes were not with the common people..The method behind this move is that in a single stroke rs 500 and rs 1000 have become useless piece of paper.The rbi has introduced rs 500 and rs 2000 notes from nov 10 2016 to replace the old ones..The idea of government is that those people who have genuinely earned money won't be having problems in exchanging their money with thr new currency but those who have unaccounted money stashed in cash of demontised currency will be having problem..
Firstly they will have to disclose it to one or the other government agency and hence will pay tax on heavy penalities.secondly they will have to explain the source of their income and the third part the most important one is people who saved this money for investing in nefarious activities like terrorism will be in trouble.Well the above mentioned ones are the advantages said by the modi government in taking such an action. Now the question is did their goals hit the nail properly.
Did any rich ones (people who has black money)suffer due to this..This is the time when we should remember the words of our ex rbi governer about demontisation of notes before 2005. He clearly said that the clever wll find ways to divide up their hoard in to many smaller pieces..and most of the money will not be in the form of currency but in the form of gold which has value all over the world..thats why he clearly opposed the idea of demonetisation in 2014 and its clear that modi govt took this move after the removal of Raghuram rajan and the appointment of urjith patel as rbi governer
We cant find ambani or any other rich standing in queue of an atm counter for exchange of currency and its damn foolishness to think that none of the high rich people won't invest their money completely in indian banks because the value of money in every country fluctuates now and then..
So how is the modi govt expecting that they will get lots of tax returns and black money upon rade..
The saddest point is that the poor are suffering due to this..i mean the common man ..insted of helping them the politicians are making use of the issue for making themselves popular..
The dewaswam minister could have provided the income from temple undies to common people when people are running for change of notes below 500..
That would have been a real helping hand to common man..the civil supplies corporation could have taken these demontised currencies from thr people as the value of goods and exchange them with the treasuries or bank later..
And the most comical poimt is that each day the rule is changung such that we could say 50 days 60 rules #demonetisation.. now the rule is that u cant deposit beyond 5000(demontised notes) even in courtes in case of penality.. One can say that the modi govt had taken a huge risk such that since the process of transaction of money isn't much smooth nowadays the common people are facing lots of difficulties whuch brings unpopularity to the government. Secondly if the mission failed to make a long lasting curb on black money it may act as a boomerang at the time of election..
It is also noteworthy that the government is more foccused on tracking of black money rather than blocking ways of its generation. But those who are accustomed to earn black money and supply fake currency will still do it.
Overall we could only say whether the move was an intelligent one or not only when the statistical repoRTS from the income tax and other Department where black money would play a major role come after dec 31 2016..Let's hope a new dawn will rise on Jan 1 2017 paving a new upliftment of indian economy towards the path of development
Comments and Feed backs are welcome:
Contact me at neethusreedhar25@gmail.com
Though this is not the first time when such a bold step with an aim of flushing out black money had been implemented in india. In January 1978, 38 years ago the then PM Moraji Desai's Janatha Party government had demontised Rs. 1,000 Rs.5000 and Rs 10,000 notes. But that was a completely different step when compared to the present when these high value notes were not with the common people..The method behind this move is that in a single stroke rs 500 and rs 1000 have become useless piece of paper.The rbi has introduced rs 500 and rs 2000 notes from nov 10 2016 to replace the old ones..The idea of government is that those people who have genuinely earned money won't be having problems in exchanging their money with thr new currency but those who have unaccounted money stashed in cash of demontised currency will be having problem..
Firstly they will have to disclose it to one or the other government agency and hence will pay tax on heavy penalities.secondly they will have to explain the source of their income and the third part the most important one is people who saved this money for investing in nefarious activities like terrorism will be in trouble.Well the above mentioned ones are the advantages said by the modi government in taking such an action. Now the question is did their goals hit the nail properly.
Did any rich ones (people who has black money)suffer due to this..This is the time when we should remember the words of our ex rbi governer about demontisation of notes before 2005. He clearly said that the clever wll find ways to divide up their hoard in to many smaller pieces..and most of the money will not be in the form of currency but in the form of gold which has value all over the world..thats why he clearly opposed the idea of demonetisation in 2014 and its clear that modi govt took this move after the removal of Raghuram rajan and the appointment of urjith patel as rbi governer
We cant find ambani or any other rich standing in queue of an atm counter for exchange of currency and its damn foolishness to think that none of the high rich people won't invest their money completely in indian banks because the value of money in every country fluctuates now and then..
So how is the modi govt expecting that they will get lots of tax returns and black money upon rade..
The saddest point is that the poor are suffering due to this..i mean the common man ..insted of helping them the politicians are making use of the issue for making themselves popular..
The dewaswam minister could have provided the income from temple undies to common people when people are running for change of notes below 500..
That would have been a real helping hand to common man..the civil supplies corporation could have taken these demontised currencies from thr people as the value of goods and exchange them with the treasuries or bank later..
And the most comical poimt is that each day the rule is changung such that we could say 50 days 60 rules #demonetisation.. now the rule is that u cant deposit beyond 5000(demontised notes) even in courtes in case of penality.. One can say that the modi govt had taken a huge risk such that since the process of transaction of money isn't much smooth nowadays the common people are facing lots of difficulties whuch brings unpopularity to the government. Secondly if the mission failed to make a long lasting curb on black money it may act as a boomerang at the time of election..
It is also noteworthy that the government is more foccused on tracking of black money rather than blocking ways of its generation. But those who are accustomed to earn black money and supply fake currency will still do it.
Overall we could only say whether the move was an intelligent one or not only when the statistical repoRTS from the income tax and other Department where black money would play a major role come after dec 31 2016..Let's hope a new dawn will rise on Jan 1 2017 paving a new upliftment of indian economy towards the path of development
Comments and Feed backs are welcome:
Contact me at neethusreedhar25@gmail.com
