Advantages And Disadvantages Of Demonising Demonetisation

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Demonising Demonetisation

It was more than two years ago that I first read a story about Samosa Sellers on Mumbai Local trains (Read it Here) and whenever I see a hawker I almost always remember it making me wonder how smart Indian businessmen accumulate more wealth than us salaried people by evading taxes. I see people paying huge sums of money in cash and cannot fathom why almost seven decades after independence and a quarter century of economic liberalisation we have so much reliance on cash because I started using plastic money in 1996 and have never needed to carry cash beyond a certain limit in my pocket ever since.
Well, someone (or maybe some people) did think on these line and it has been 21 days since PM Narendra Modi announced
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This can be used by the government to revitalize the economy and drive growth in the long run without impacting inflation. Secondly, it will act a warning shot to all the people with illegally acquired wealth to shut shop and start doing things the right way for it may not be worth to amass wealth again to lose it to a similar policy in the future. Third, it will put an end to the politician-bureaucrat-criminal nexus which thrives on black money. And last but not the least, the elimination of counterfeit currency has already dealt a heavy blow to terrorism (including Maoist violence) in the…show more content…
Despite standing in queues outside banks and ATMs for hours, they are in full support of the PM’s move. The biggest whiner in this whole exercise has been the “self-confessed sole custodian” of “anti-corruption movement” in India Shri Arvind Kejriwal. The PM has stolen his thunder just before he was dreaming of making an impact in Punjab election. Therefore, he is running around like a headless chicken throwing pointless accusations against the PM and the govt.
Issuing 2000 denomination in place of 500 and 1000 is not going to prevent black money generation. From what I have seen interacting with people during the last few days, the fundamental problem is that people are unable to get over the habit of using hard cash. That is the reason the queues at the banks and ATMs are not reducing and the ATMs are running out of cash within few hours of topping up. So the need of the hour is for the Indians to realise that they have to start using other means of payment like Credit/ Debit cards, mobile wallets, NFC payment if we have to root out

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