After the incident of the prohibition of the currency of 500 and 1000 Rupees as on 8th November 2016, there has been too much chaos among the general public, among ruling and opposition parties, between the general public and banking staff and authorities. There are varying opinions from the every section of the society. Some of them are as follows:
The government of India: Demonetisation was the much-needed action in order to curb the black money from the society, for the abolition of corruption from the system, to stop the terrorist funding, to kill the problem of counterfeit currencies. These were the major highlights during the first week. [Please note that there was no mention of the promotion of digital means of payment or anything about digital India].
Opposition Parties: Demonetisation is a conspiracy to assist the corporate friends of the Government. It has nothing to do with prevention of black money or corruption. Currency accounts for only 6% of the total black money. So, why not to take action against the real culprits?
General Public: There are two arguments from the general public. Those who are the supporters of the Government would say that they are facing issues but it is OK as soon as it is in national benefit. They are ready to sacrifice. While the other section of the public who did not vote for this Government or who are neutral claimed that it was a wrong move. If the prevention of the black money and corruption was the aim, it could be done through direct raids too. Why should they suffer?
Above are the views from the different categories of the society. One thing they all agree that implementation has not been successful. Prime Minister assured the nation in his message that within 50 days i.e. by 30th December 2016 everything will be normal else he is ready for any consequence. Sounds like he gave a deadline but it never materialised.
RBI came with more than 55 notifications within 50 days. Seems like they have no idea beforehand what to do how to do. They behaved like a new startup. Every move by RBI proved to be trial and error.
Now, the 50 days lock-in period asked by the Government is over. But lock-in is still continued. Withdrawal limits are still existing. People cannot withdraw more than the amount of 24,000 Rupees per week howsoever. They said withdrawal limit of the ATMs has been increased to 4500 Rupees per withdrawal. But does that make any change when the overall limit is the same and there are no sufficient funds in the ATMs. Ok, let’s leave it and come to the success announcement as declared by the Government and believed by their supporters.
Fact by Government: Over 14 lacs crores of the amount has been deposited in the banks. It is such a great victory. Never before such amount has been deposited in the banks.
My Question: What is the point of victory? This is not the money people wilfully deposited out of their saving. You called for the 86% currency from the economy to be deposited or they will go invalid. So, the forceful deposit is a victory. Wow, great!!! Another thing, this money is not the asset of the RBI or the Government. This all money belongs to the public and banks are liable to honour it to whenever the account-holder wants to withdraw them. You might suppress the power to withdraw for few days but it won’t last for long because banks have ultimately to pay interest on this money. BINGO, ever thought about this side?
Fact: Thousands of crores Rupees have been detained in raids.
My Question: So, that could be done even without demonetisation. You can always raid the big fishes. I don’t see any link between demonetisation and raids. Moreover, I didn’t hear any Congressi being raided or arrested with a huge amount. Where is the money they looted in their 65 years or regime? If they sent that to Swiss banks then why no action for Swiss account-holders?
Fact: Inflation came down after demonetisation.
My Question: Is that called a decrease in inflation? Well, it is called a recession. When the purchasing power is killed, demand will automatically come down and prices will fall [source of knowledge: Basic understanding of Economics].
Further, there are many more questions:
Earlier the terrorists were funded either from the fake currency or from the Indian traitors who supplied them money. Right? My question is the terrorists now being killed at the border, are they Central Government funded? Absolutely, there is no prevention of terrorism after demonetisation era. So, this aspect has been totally failed.
1. How many of opposition party leaders have been detained with black money as compared to the ruling party people being arrested?
2. Why RBI can’t disclose the reasons for demonetisation decision when it was taken for our own benefit only. And beneficiary itself is not entitled to know the reason. Big WOW.
3. How the terrorists got the new 2000 Rupees currency? Does Government offer home-delivery service of new currency to Pakistan?
4. How many people are going to be benefited from the reduction in home loan interest when they are literally struggling to meet daily need expenses.
5. Why so much love for the oil companies? While the invalid notes were valid at private petrol pumps until mid-December, then why not at private hospitals?
6. The general public is being promoted (literally forced) to adopt digital payment system, how many hospitals, medical stores, post offices, railway stations are fully equipped to accept card payments?
The list of questions is so long but these are the most prominent ones. I hope it will enlighten some of the minds especially those who support the Government without any basic knowledge in money and economics. Overall, I don’t see any reason to jumping over the deposits in the banks.