Flawless decision by the government. Pondered over the pros & cons of the decision of scrapping the old series of notes of denomination of Rs. 500 & Rs. 1000.
Arrived to a conclusion (my personal opinion, experts may disagree):
1. The value of the Hard EARNED money of corrupt officials across the country stands NIL as the notes of biggest denominations they had in their houses or GODOWNS are scrapped. They are as good as any colorful piece of paper available in the market. On a lighter note, no difference between the notes of Rs. 500 & Rs. 1000 issued of RBI & Bhartiya Manoranjan Bank. ?
2. The same is applicable to all the corporate houses, businessmen, Sports betters etc who had amashed black money as they will not find any taker of this black money be it Capital Market, Money Market, Real Estate, Hawala etc. Since they themselves are under pressure due to increased regulation made by several authorities viz SEBI, RBI, INCOME TAX, ED, Economic Offence Wing of CBI & State Police among others.
3. The influence that the black money market had on our economy is massive. Because of the black money which is present in the economy but not accountable for the purposes of monitoring the Health of the economy shall be neutralised. Say for an example, the data for foreign remittances will be correctly matched with what sent officially unlike in past. There shall be a huge blow on the Black Money which is considered by many as a Parrallel Economy.
1. With the reintroduction of the bigger denomination, it is likely that the game of Black Money may resume. To ensure that this does not happen, greater enforcement should be made. Efforts to reduce the cash economy and encourage the cashless transactions.
2. The present govt or any succeeding govt may change the decison taken and resume the circulation of old notes. This may create a grater panic situation than what we have now as all the black money holders shall be injecting the money kept till such time into the market. To avoid this, there needs to have a political will which can very well be seen in this govt. Need of the hour is to epower the law enforcement wings viz. Income tax, ED among others to another scale and digitalise the country to keep an eye on the suspicious transactions.
3. The law brought with an intention to curb Black Money & Corruption shall be having an adverse effect on the poor. A major portion of our population who happen to reside in villages and still have very limited access to banks and that too at some places through banking correspondents (BC) may find it difficult to get the money in time as they are not well equipped with ATMs offering money instantly. Efforts would be that the rural areas should also be in focus while circulating the money. The duty of the Rural Branches and the respective BCs increases here as they have to carry out the work of assisting the needy ones immediately.
4. The panic observed among the general public is obvious and well understood. The need of the hour is to sensitise them about the law and the steps are to be taken for avoiding any kind of confusion grown out of this law by making ads, radio, TV, social media etc.
The cons of the law are not influensive in nature and can be easily done away with if worked upon properly.