Demonetization effects

Demonetization 

Will Demonetization solve the issues ? Is it really worth to demonetize currencies, what will be demonetization effects on common people ?.

I have listed four advantages, it will bring to common man's life.

Well we all are aware about what is going on, in our country these days. ATM's not working at par, Bank employees are overloaded with work; people are standing in queue day and night, some are happy and some are sad. Some carrying their water bottle and lunch with them, just to get their money exchanged at Bank counter. 

And we all know why?

500 and 1000 rupees currency banned (demonetized) by Indian Government or rather we can say MODI Government AKA "MODI SARKAR".

It all started on 8^th November, 2016 @ 8 pm. When our respected Prime Minister Shri. Narendra Modi announced that after 12 o’clock from today 500 and 1000 rupees note will not be a legal tender. And soon after an announcement, people started queuing up at ATM centers, at petrol pumps and some at ration shops to fill up the stocks for the next 6 months suspecting that things are going to turn nasty.

Some of us are supporting this move of Modi Sarkar, whereas as some of us opposing it. We have also witnessed that some political parties have strongly opposed this move. It includes almost all the opposition parties in the parliament. Though we all are still in dilemma about what lies in future.

Let us see 4 major advantages; this move will bring to common man.

1)    Hit on Terrorist Activities :-

                Historically India has been a victim of terror, be it 26/11 Mumbai Terror Attack where almost 166 persons died and around 293 were injured including Indian and foreigners both. 12^th March 1993 Mumbai Serial Bomb blast where 256 people died and more than 600 were injured or be it Delhi Serial Bomb blast which took place in October 2005, Jaipur Blast 2008, Mumbai Train Blast 2006. Whenever we recall these memories, our eyes flood with tears.

                With this move of the government, it has ensured that terror funding is broken down completely. Any activity needs financial support and if that is withdrawn, the rest collapses with ease. Now the funds available with terrorist organizations are mere piece of paper. It’s wise to fight terrorism at the back end rather than on front end.

It should be “Financial War” NOT a “World War”.

2)  Low Lending rate:-

                 People are queuing up at bank branches to deposit their money, which is of course NOT “Black Money”. It could be their monthly savings for emergencies or money kept for  day to day transactions, but this figure is huge. It could be between 6 to 8 lac crore. And as per simple demand and supply rule, more the money with the bank, more they can lend and simply lend at a lower rate. As supply will exceed demand for money. 

                The most important event in common people’s life is buying a home and it will certainly come true with this move, more importantly they don’t need to pay in black-white percentage. All other loans will also get cheaper and eventually inflation will come under control. Well this is not going to happen overnight. It will take time but it will happen. We just need to be more patient.

3)  More employment opportunities :-

                    Surprised!! How? Let me elaborate, too many scams have spoiled India’s global image, due to which international investors were reluctant to see India as an investor’s paradise, but with this action it will restore it.

                     Hence more money will flow to India in near future. More money = more investment. More investment will create more job opportunities for youngsters. This move has sent a strong message in the world that India is no more tolerant towards scams and black money. 

4)  Improved Infrastructure facilities & benefits to common man :-

                  People tend to avoid paying tax and create black money. In simple words, “Black Money” is unaccounted money, something which has no records. Source cannot be detected. This step will close almost all loopholes in tax evasion process and eventually government will have more money to spend on infrastructure and will be able to provide various govt. schemes benefits to the account holders. Before arriving at this decision, our Prime Minister started a scheme “Jan-dhan yojana” under which less privileged people brought into mainstream by opening their bank account.  Financial inclusion of these people ensured that they have access to banking and other financial services. And this is how unbanked and unaccounted money came into economy to give it more boosts.

Lastly this is a courageous decision made by Modi Sarkar. In spite of allegations and chaos, people are patiently standing in queues for their own money, keeping in mind that this pain is going to reward them in near Future.