General

Demonetisation: Boon or Bane?

The declaration of the discontinuation of the current Rs.500 and Rs.1000 notes, by our Prime Minister, Narendra Modi on 8th November, 2016, left everyone in shock. Demonetisation in basic terms is when a certain form of money is retired and is no longer considered to be a legal tender. The main motive behind this action, as suggested by our Prime Minister is to curb black money, vanish corruption, bring an end to the circulation of fake currency and demolish the name of terrorism from our country. The currency that replaced the former ones were of Rs.500 and Rs.2000. New notes of these denominations were introduced.

Being such an important act, it surely would’ve been planned way earlier but today , when we go around asking people if they actually are happy with the decision we will always get mixed answers. This, being such an important step for our economy was so sudden that it shocked each and everyone one of us. People who had hidden their wealth had to find ways to make use of it ,while the vast population of our country with a huge amount of black money was very disappointed with the move. On the other hand, people who were more concerned with the development of our economy supported the move and applauded the Prime Minister for taking such a brave decision. People had to spend long hours in front of the ATMs, waiting to withdraw money while the limit per day was only Rs.4000. It showed the strength and patience of the common man when dealing in such situations.If only it would’ve been announced a little earlier then the people holding black money would’ve found ways to turn it into white and the whole motive of the act would be lost. Hence , it was really important for it to be a sudden announcement..

image source: Google

Demonetisation has500-and-1000-rupee-notes-afp_650x400_81478769280 impacted the various sections of the society and each one of us have had our own share of experiences while dealing with this phenomenon. For some it may not be that difficult but for many, the movement had hard hitting consequences. People with huge amounts of black money were all tensed as they had time only till the 30th of December, 2016 , to get all their old notes exchanged with a proper account of their transactions. While many people from the labour section of the society were facing the hardships as they were totally lost and they were left with no option as many of them didn’t even have a bank account. These labourers were highly affected as due to the imbalance in the cash flow their business came to a halt and as they survived on daily wages they had nowhere to go. When asked about whether the government took a right decision, Mr.Zuber, a Kurti seller at Crowford market, said that “ the government did a very wrong thing when they introduced demonetisation. It has impacted us in a very negative manner, all our income came to a standstill during that period of time as people didn’t have cash. Even now when they bring Rs.2000 notes we can’t give them change as even we don’t have that much income as before”. Similarly, when asked about the same thing, Mr.Kamal Arya, Producer at Raindrop Productions said that, “I think BJP took a very drastic step and a bold step.It is going to help the economy in long run”. We can see how the two different sections of the society have two very different opinions on a single subject. Demonetisation in itself is very deep. While on one hand it has a lot of benefits but at the same time it’s impact on the lower sections of the society has been very bad.
Demonetisation was a huge step and now that we look at the visible impacts of it, somehow it can actually prove to be a good decision for our economy in the long run. It is because of demonetisation that the Naxal movements have come to a halt. They don’t have the money to survive, which has resulted in their activities coming to a standstill and we hope that this continues for all the other sectors of terrorism. This is a positive change that we can see in the society, but there have been a lot of hardships faced by the less equipped, poor sections of the country. These poor sections of the society , have a very limited cash flow ever since the introduction of demonetisation. There are labour classes who haven’t even seen the 2000 note till date. Before the action took place, they had sufficient income but now it is very rare that they even come across a Rs.2000 note.

One of the main motives of demonetisation was to stop the flow of fake currency notes in the system. As we know that our neighbouring countries are one of the biggest suppliers of our fake currency, this step has made them helpless and they are left with money that is worthless. Such positive impacts makes us believe that it was rather a good step taken by our government, but at the same time the question arises that whether it was implemented in a systematic manner and would its implementation could be better. When asked about how it’s implementation could be better, Mr.Kamal Arya, Producer, Raindrop Productions, said that “It could’ve been better.It could’ve been planned properly.The systems should’ve been in place.People could have been provided with more facilities with their transactions and I think it could’ve been done in a much better way”.This actually affected the daily lives of each and every person in some or the other way. If only better ways of withdrawals and deposits were introduced since the start, the problems faced by the common man would’ve been reduced to quiet an extent. Seeing the people stand in queues for so many hours , many institutions started distributing water and snacks to the people and we could see how there was unity amongst them and a sense of homeliness in this act.

Demonetisation as described by some, is a “demon”, while some feel it’s a “blessing” for the country. It hasn’t been a very long time since its introduction but already we can see the changes and in the long run it can prove to be positive for our economy. Everyone has had their take on this issue and only time will tell whether demonetisation has been a boon or bane for the country.

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