On November eighth evening after brief cabinet meeting PM Modi appealed to Pyare Deshvasiyo to support demonetisation of Rs. 500 and Rs. 1000 currency notes after promulgation of ordnance ‘extraordinary
/part2/section 3/subsection 2 dated November 8, 2016.
An ordnance was issued for demonetising in 1978 by then PM Morarjibhai for Rs. 5000 & Rs. 10000 notes.
History repeats itself as both hail from Gujarat and both share strong desire to end black money. There’s more to the above said that even at that time there was election of five states due as today we can foresee the changing pattern of up coming elections especially in UP, Panjab and Uttarakhand.
Secondly there was a rumour even in 1978 that Big parcel of cash has come via Kathmandu for forth Coming elections. Even now people are talking that heavy money exchange may happen before election ideal code of conduct is promulgated.
There are chances of horse trading and exchange of big cash for the same also before elections.
Therefore timing of the decision is enough reason to raise eyebrows to ask whether this is purely an economic decision or being driven by Political Will.
Still there’s hardly any ground to criticism as such revolutionary step meant to be as measures to curb and crush parallel money empire feeding terrorism and drugs and fake currency.
There’s no doubt that all undeclared incomes of people would come on record and more important in circulation.
The most significant factor of this historic declaration is well guarded confidentiality of courageous decision for Currency-control.
Earlier in 1978, the duration of one week was given which was enough to handle the crisis as the declaration of demonetising was made on January 16 and people could go for exchange till January 24. 1978 without any declaration.
Even currency sent by post under insurance cover was accepted.
There was aproximately 15 crore in banks and 103.37 with people in circulation. On July there’s approximately 167 crores in total circulation. This shows 13 crores increase only. But this is also noteworthy that there was 48% hundred rupee currency in circulation which was not touched by demonetisation.
The consequences of current declaration is yet awaited. One thing is sure there would be tremendous increase.
Even if not even one of black money see the light for being exposed or to increase tax accounts, one thing is sure that all money hidden in hand is or mattresses would go to bank deposits.
Modi tried this endeavour by opening accounts under scheme of Jan-dhan-Yojana. Then by persuading people to
declaring amounts which tax has not been paid for earlier. This concession helped to bring dead money into circulation along with tax payments.
This is Universal Truth that stagnation is the main reason for hampering growth. Bringing all Indian currency into circulation would definitely help for enhancing speed of the wheels of development that also holistic development. As small traders or even savings of homemakers will fetch interest for them and better data for GDP.
More significant fact is that all fake currency would go to garbage. Havala or other channels of hidden money are stalled with this Master stroke of PM Modi.
For common people there’s no need to panic. Little patience to get cash may help the system as well as themselves.
And as caution for those who are buying precious metals to park money, this must be logical to wait and watch.
Modi was young man and people from that generation remember that people with savings of paise were quite happy by the decision of Morarji bhai. Next step may be some kind of gold control as Modi is already appealed for investing in paper gold.
This is humble request to hon’ble PM that women look good in jewels set in gold; and that’s stree-dhan. Please do not deprive them from this earthly pleasure which they gain after enduring much pain unless there’s real financial emergency.
And do not forget please that in crisis women give away their jewellery willingly. Even Mrs Gandhi gave away her bangles during wartime.
We welcome the revolutionary decision for demonetising currency – purifying Indian politics.
There shall be hung assembly results of elections yet better development.
At this junction, may we people of India request for more logical taxation and zero theft of taxpayers’ hard earned money.