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Surgical Blow on Black Money
Modi aims to bring liquidity in Indian economy than converting cash stashed into trash
By Asit Manohar
P
rime Minister Narendra Modi
was elected to take big,
transformational decisions. He
hasn’t exactly been full of such
decisions in the past two and half years –
but he showed on November 8th that he
was certainly capable of them. In a bid to
give surgical blow to the parallel economy,
he announced demonetization of the Rs
500 and Rs 1000 Indian currencies on
November 8th evening giving only three
and half hours to the people indulged
in hoarding money with unaccounted
sources to park. Interestingly, the PM
chooses a time to announce this surgical
18
blow when banks will be closed and
majority of the markets would be on
the verge of close or have been closed
down. So, the government of India left
no option to the black money owners but
to reveal their money stashed from the
unaccounted sources.
When contacted economic experts
said that the move was an ‘honest step
towards cashless economy’ and deserved
welcome from all sections of the society,
even though it would create some minor
problem for the public in general. They
urged the people of India to cooperate
with the government rather criticize for
such a minor problem which they will
have to face with this step. They said
The Dayafter November 16-30, 2016
that the move would not only make black
money cash into a trash, it would help the
government of India to contain the fake
currency which is mainly floating into
the form of Rs 500 and Rs 1000 currency
notes.
Mamta Binani, President, ICSI said,
“The decision to scrap Rs 500 and Rs 1000
currency note by the Modi Government is
a positive step towards fight against black
money. It will cause some temporary
inconvenience to the common man in
terms of converting from the old series
of notes to new Rs 500 notes and later
the new Rs 2,000 notes.” She went on to
add that inconvenience is a price that is
worth paying for the long term benefit