Modi, the Prime minister of India has implemented
Demonetization in India whose impact is yet to be known. It is too early to
decide and call it a “Progress”. It is being implemented with motive to
eradicate Black money and terrorist funding but it also resulted much more
consequences. Some of them are good and some aren’t. Here is an insight:- It is recovered up to 4 lakh crores of black money
- dismantled fake currency and helped in reducing terror funding
- It reduced direct cash transactions and helped government in levying Capital gains tax
- It also helped in reducing voter buying strategies (exchanging cash for vote) when polling is near by political parties
- It also helped move India towards digital payments and helped progress in technology and using of apps like Bhim which is introduced by PM himself and can be used on any phone whether it supports Android, IOS or a non-smart phone
Well, it is a good move but it created quite a bit of chaos in
India troubling both banks as well as the people. There is lack of cash in ATMs but any change irrespective of whether it’s good or bad is painful.
The demonetization though was implemented for the good, it is not as successful
as it must be:
- The black money that is deposited is not even 1% of what is held in foreign banks by the corrupts
- It is also that nature of Indians to hold cash has saved us from Sub Prime Crisis in 2008, which was biggest recession after 1930’s. Banks themselves were bankrupt but the natural tendency of Indians to hold cash didn’t erode us from the purchasing power and thus our economy kept going
- It also seems to be a lack of proper plan before demonetization is implemented as the new Rs2000 notes were too small for the ATM machines and there was lack of enough cash in ATMs
- Though there are so many who are affected through this policy, the worst hit sector is “Real estate”, because it is deals mostly with cash the builders are in great problem
The references for the above are taken from the below links :
