Early this month, demonetization of higher Indian currency notes, i.e. Rs 500 and Rs 1000 which was effective from 9th November, has immensely impacted on several sectors. The sudden currency reform announcements were targeted for accumulating black money and eliminate the massive amount of fake notes that is circulating the country.
The decision of demonetization is indeed a blow off for the fake money generated by criminals, underworld, black marketers, and terrorists. Demonetization has a great positive impact on the country which has reduced the crime rate in several rates. Demonetization indeed is a historic effort for cleaning up the corruption that is following since long decades.
Sudden Declaration of Demonetization by Narendra Modi Determines Several Impacts
Bhartiya Janta Party, the ruling party has taken a brave decision that is an initiation for a betterment of Indian economy. Indian Prime Minister, Narendra Modi passed a verdict that has alarmed the persons having unaccounted wealth or black money! There are several pulls over regarding demonetization where some consider it as a boon while some declare it as a curse!
Although in this age of digital, long queues are found in front of banks, demonetization has received high support from several bankers as well as Indian Citizens. This unscheduled live televised declaration of demonetization is criticized by the opposition party determining several issues.
Detailed Report of Demonetization
This unscheduled announcement was done on 8th November at around 8:15 PM Indian Standard Time. Prime Minister Modi declared that the existing 500 and 1000 banknotes would go invalid from midnight of the same day. Along with this, he announced the issuance of new series of banknotes of 500 and 2000 denominations.
This decision was not made instantly but was under process since six months of the declaration. Printing of new banknotes of 500 and 2000 denominations had already started since then. But this information was a top secret and limited within the top members of the government, central banks, and security agencies.
Facts about Demonetization Which Every Common Man Must Be Aware Of
RBI- Reserve Bank of India has laid down detailed procedure for exchanging the demonetized banknotes.
- The banned 500 and 1000 banknotes can be exchanged at the nationalized banks or any office of RBI.
- The rule of cash withdrawal which was limited up to 10,000 per day and 20,000 per week until 13th November was revised to 24,000 per week from 14th November.
- Filling up requisition form along with a valid ID proof, the old banknotes can be exchanged. The limit per person which was 4,000 until 13th November was increased to 4,500 from 14th to 17th which was further revised to 2000 per day from 18th November.
- Petrol pumps, CNG, gas stations, railway stations, airline booking counters, government hospitals and state government recognized diaries were exempted to accept the old banknotes.
- In the case of weddings, the revised guidelines allowed withdrawing 2, 50,000 for the wedding expenses.
- The rules were revised for farmers and were permitted to withdraw 25,000 per week against the crop loan.
Demonetization a Threat for Terrorist Groups
Demonetization has struck the core of terrorism financing as per the reports. The Maoists and several other terrorist groups based in Kashmir have suffered a loss of around Rs 800 core. The notes that were collected from extortion, illegal hawala transfers and taxation which supported the manpower and illegal operations have turned as scrap papers. Choking the financial channel of the terrorist group, demonetization has weakened the capability up to a good extent.
Suspension of Bank Employees on Irregularities
The sudden declaration of demonetization has been responsible for the major crackdown on the bank employees. For misusing their posts and irregularities in their responsibilities, several senior officials from various public sector banks were either suspended or transferred.
Bank employees indeed are giving high effort with tireless banking operations for providing the best customer services. But the employees involved in unlawful acts underwent strict actions.
Demonetization- An Initiative for Digital India
The declaration of demonetization and scarce of banknotes of lower denomination and new banknotes has impacted on the retail industry. The aim of Digital India has been ignited with such decision. Since the declaration of banning Rs 500 and Rs 1000, retail commerce is shifting to m-commerce.
As per reports, usage of Smartphone has grown extensively. India is witnessing an upsurge with an adaptation of digital payments and is expected to elevate in recent days. From grocery shopping to paying utility bills, everything is running successfully with a hike through mobile apps.
Demonetization Takes the Lead in Lowering Criminal Activities
As there is no validity of the old banknotes in current spectrum, criminal activities have reduced. Specifically, contract murder killing has reduced spectacularly as there is no money for making payments to the criminals. Crime graph of several metro cities has reduced that includes collapsing of drug dealings. The effect of demonetization has hacked the criminal activities in an immersive way.
Demonetization Takes a Great Part in Moving Up Small and Medium Industrial Sectors
The reduced interest rates on loans have been an incredible initiative for the micro, small and medium industrial sectors. The lowered interest rates on loans would certainly help the industries to get well organized.
Demonetization- An Initiative for Maintaining Transparency in Transaction
Demonetization has welcomed by several sectors as it has increased cashless transactions. The cashless transaction will increase the transparency in transactions in different sectors. Cashless transactions which are directly accounted in the banks would keep a proper record of business transactions and would cut off black marketing ratio and bounce tax filling.
The tax collected from the liquidity of the transactions would be helpful in building the infrastructure of the country.
Let Indian Citizens Decide It- Boon Or Curse !
Since the declaration of demonetization, long queues are marked in front of the banks and ATMs across the country. Stock market crash even followed with the announcement. Common citizens, as well as the established personalities with a bunch of banned banknotes, have no differentiation now!
There are several merits and demerits of demonetization, but such initiative may be a start up for a new beginning. Indian citizens would have to bear the consequences of demonetization for few months until the new banknotes are available in the market in abundant!
It’s up to the Indian Citizens who would decide that demonetization is a boon or curse!