For the last 3 weeks, the SBI ATM was providing only Rs 100 note and as a result, we were forced to carry more cash in volume, than before. But never did we realise that this was a masterstroke by our PM Shri Narendra Modi to curb black money.
All of a sudden a video came out by the govt. that Rs 500 & 1,000 notes were being banned from 08.11.2016 midnight. It will however be entertained in hospitals, toll plazas and railway stations so that any sort of chaos can be prevented.
This was definitely the best economic reform after 1991 Economic reforms. Last time demonetization of higher value notes were done, were in 1978 by the Morarji Desai led govt.
This will help the salaried class and the people with legal income. Certain measures has been taken so that the people having undeclared income cannot change more money into Rs 100 denomination. Govt will deduct tax on deposit of more than Rs 2,50,000 and will also penalize for income mismatch.
This will create a bit of cash crunch for the middle class in the beginning, but eventually it will settle down and stabilize our economy. Real estate, essential commodities and other products will become less expensive. The people will get more value for their money, cash crunch in the nation will be curbed and people will eventually be forced to take refuge in white money.
Corruption will decrease to a greater extent and govt will benefit overall. Inflation will decrease and eventually the money we pay for tax will be used in more effective things like defense, health sector, education. Even education and health care will become less expensive.
But this did not happen in a single day. First the govt came with Pradhan Mantri Jan Dhan Yojana in 2014 where accounts were created for all the citizens. Financial inclusion was a must. Then all the bank accounts were linked with AADHAR Card. Then income declaration scheme was introduced. Finally the masterstroke was declared at 8 p.m midnight so that people won’t be able to purchase Gold or have any affect on share market.
A Surgical strike on corruption, indeed.
When the whole world was busy with US President election 2016, Modji was busy making India great again.
The govt is ready to bring in new denomination of Rs 500 and Rs 2,000. These will have new design pattern. But all the notes will bear Gandhiji’s photo.
What I think, is that even Bhagat Singh, Shivaji Maharaj, Netaji Subhas Chandra Bose and APJ Abdul Kalam’s photos should be used. We can have separate photos for separate value of money.
This is an appeal to the govt., to include these eminent personalities in separate series of currency notes.