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Historical Move - How Many 500 and 1000 Rupees Notes You Have?
Historical Move - How Many 500 and 1000 Rupees Notes You Have?

Historical Move – How Many 500 and 1000 Rupees Notes You Have?

Prime Minister of India Narendra Modi at the 2014 Global Citizen Festival in Central Park on September 27, 2014 in New York City.

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Sukhdeep Singh

Sukhdeep Singh

Write Something To Right Something

Passionate about playing with words. Sukhdeep is a Post Graduate in Finance. Besides penning down ideas, he is an expert online marketing consultant and a speaker.

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HIGHLIGHTS

  1. A historic and bold move.
  2. A slap on terrorism, counterfeit currency, black money, and corruption.
  3. A short term panic, but long term economic boost.
  4. Stay calm and Corporate.

Whole Indian Media was busy with America Elections. Modi Ji came out of syllabus.

What a perfect timing. Black marketers were busy with US Trump and Indian Prime-minister confused them with his trump; demonetizing higher denomination notes. Within a few minutes of the broadcast, the news spread like fire in a forest; India fight against corruption. The Indian Prime minister announced a ban on 500 and 1000 rupees notes.

Indeed a historic step and you need guts to do that. As expected, there was mixed reaction from all section of the economy. Once again, after the surgical strike issue, Indian news channels had something for their TRP.

From different sector of economies, people were reacting in different tones. I have literally seen queues outside ATM machines, money deposit machines, petrol pumps, jewelry shops, apple phone stores. “Prime minister was ‘on-air’ on the every news channel and requesting people to not to panic. It was an important decision for curbing corruption, terrorism, counterfeit currency, most importantly black money within the country. Fair enough.

As usual, there was a section with complete praises and there was one with a bag full of negativism. Regardless of his appeal, people were in panic all around. People with undeclared income were taking every possible step to make their money white; they were lined up for buying expensive apple phone and jewelry. The price of gold hit the three-year high.

This morning, I saw police mediating people clashes; there were arguments everywhere, be it a chemist shop or petrol pump. Just wondering about those who have their marriages scheduled in these days and especially those who have withdrawn a huge amount of legal money in order to meet those expenses. All of a sudden, those currency notes becomes nothing, but pieces of paper.

Another political party – CPM labeled this step as a gimmick. They demanded the government to publicize the cost of demonetizing higher denomination notes. To them, this step is a diversion; a trick used by the ruling party to hide social and political failures of this government in past 2.5 years. This is what a tweet from CPI-M General Secretary Sitaram Yechury mentioned.

Another statement made by AIBEA’s general secretary CH Venkatachalam claimed that – withdrawing said notes from the circulation is not going to help in fighting black money as it is stashed away in foreign banks, foreign currency, gold or in the form of other assets. Everyone knows that the big amount of black money is in the foreign banks and not in local banks. So, claiming it as a step against curbing black money at a larger level, is not right.

It pays, to be honest, said Arun Jaitley, the finance minister. Now, let us look at a few positive sides of this step.

Believe it or not, but this is a tight slap on those neighboring countries who prints our country’s currency more than their own. This currency ban is going to give some sleepless nights; they won’t be to do hawala (illegal money transfers) for funding terrorism.

This is a prize of honesty, actually; a happy and proud moment for honest taxpayers. After giving enough options for declaring black money within the country, this strict move is going to empty lockers of many wrongdoers. Now, willingly or unwillingly, they have to declare their money before the said date. Otherwise, they can proudly use those currency notes as toilet paper.

Think about it. How much tax (direct and indirect) government is going to collect this way. I agree, initially, we all are going to suffer a bit, but just think about its’ impact over the long run. According to Chanda Kochhar (CEO and MD of ICICI Bank), it is perhaps most significant move ever taken to curtail the parallel economy.

Today, on twitter, the most happening hashtag is – #PresidentTrump. After seeing him close to his win, many of the Americans filed for Canadian immigration. No wonder, within a few days we can hear people screaming – “India is not a safe place to live?” If you think so, you can book your flight to any corner of the world from our proud partners – “Emirates

Despite all plus and minuses, all I say is – the up-to-the-minute step seems to be the final one in the government’s systematic approach to removing black money from the economy.

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