On November 8 the Prime Minister of India announced demonetization of currency notes with a denomination of Rs. 500 and Rs. 1000 Reports have it that it was a dictatorial announcement – not even the Finance Minister knew about it.
The rules that are set in place are disastrous to the poor and middle class – no small denomination currency notes being available as only Rs. 2000 currency notes have now been printed
The old ATM machines cannot work on these new currency notes and that has further added to the misery of the poor and middle class. Recalibrating them has taken time and only a few are available resulting in serpentine queues in front of these machines at every bank visible.
Small time traders’ business ’who only have cash transactions has gone into doldrums.
This is a great opportunity for looters to do their own thing. They have asked the poor who have bank accounts – thanks to government initiative – to deposit these redundant in their account and in turn they would get some commission. This has run into crores of rupees thus creating black money in to white without accounting for it.
The whole intention of the PM – though ostensibly – was to help bring out black money but this move has boomeranged inasmuch as black money as we all know is never kept as cash but in gold land and other securities.
It is also reported that the bigwigs were secretly told about this move giving them time to take care of their situation.
We see no rich guys in queues save those who are coercing those poor bank account holders to get their black money converted to white.
With no planning the poor and the middle class are suffering.
This move as some call it is despotic and far from humane
Although I did not have many such demonetized currency notes it has affected me as well. It is difficult to change the new Rs. 2000 notes for small cash purchases. My own money withdrawal is restricted in that we cannot withdraw more than Rs. 24000 in a week.
Here is a link that will tell you more
http://timesofindia.indiatimes.com/pm-modis-address-to-the-nation/liveblog/55315325.cms
Image Source: https://en.wikipedia.org/wiki/File:500_INR_Obs_2016.jpg
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This daring move by India's PM made the news in the USA. I was dumfounded. I thought to myself “Is this going to work?”
So it wasn't a good idea huh? Can't say I'm surprised at the results. But when crime is bad and something has to be done, I can sort of understand the PM thinking “We need to do something drastic!” He must have been desparate!
Black money in cash is only 6% and rest is in gold, property and other instruments.And much of it is stacked in Switzerland.
This has put the middle class and poor who mostly deal in cash at great hardship.
What can they do with 2000 rupee notes? There are many other restrictions too
Not trying to tell the PM how to govern, but leaders need to think of the impact of their decisions on the masses before implementing solutions. Why should the middle class and poor always have to suffer? Life is hard enough for them without making an “everyday activity” a “criminal offense”. The thought of this just makes me angry and I'm not even the one being directly impacted. But I do empathize.
As they say ends do not justify means and here the means are disastrous. People are dying waiting in queues. With frauds in banks there is no currency left for the common man. But they being in the majority opposition is struggling to send the message.
Our politicians!! What can we say about them. And of course the rich and the corrupt always know about these things in advance. There are reportedly billions of dollars in Swiss banks that aredeposited by corrup[t third world leaders and flats, chateaus, diamonds, even castles. They will not be affected by these decisions. It is always the poor who suffer. Not a fan of Modi for many other reasons too. And you can bet there will be "incidents" that take away media's and people's attention away from these issues and focus on those instead.
@dawnwriter - I know I don't live in India. But I'm still upset by the fact that something we all do – rich or poor – like buying food to feed your family - can be turned into a criminal act by an “executive order”. So now must Mr. or Ms. Average Citizen must be arrested and imprisoned? It's outrageous! My stomach hurts just thinking about it. :(
You are so right. Just about 6% is in currency and this man is trying to arrest black money. Already new notes are in the hands of those who have converted their black money into white.