Ban 500, 1000 notes - Corruption Uprooted or just changing clothes!

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801 comments Page 1 of 81.

Shruthi swarup said:   7 years ago
If you have a 500 or a 1000 Rs. Note, then frame it. It depicts an end of an era. The sudden, surprising and a definitely bold move of the government to ban denominations of Rs. 500 and Rs. 1000, has left all in a huge panic. With banks and ATMs closed for 2 days, people are in a state of helplessness. Any change/revolution needs a bit of sacrifice. How useful will this sacrifice be for India and our fight against corruption?

A huge and costly dent in black money.

1. The most prominent effect would be seen on people having money stored in form of currency notes. Most of the unaccounted money (Black Money) is hidden in denomination of 500 and 1000. This move will render that money useless.

2. This move will enormously affect the funding of terrorist organizations and arms dealers as they can never be able to legalize the currency notes they possess.

3. This would also remove a large chunk of counterfeit currency from circulation.

4. Many would cite that even earlier such a move was tried, yet black money prevailed. However, this time since the amount of black money is huge; the dent in it will also be huge.

5. Due to inability to use the entire black money or convert it to legal money in such a short time of 50 days, will lead to reduction in prices of many commodities. Black money has been prominent in increasing inflation as cash transaction is the most prevalent form of transaction in India.

6. Since Income Tax department and banks will report large transaction and deposits into a bank account, transferring money in others name would not be possible. This will tighten the noose on illegal and Benami assets.

7. If any person possessing Black money decides to deposit money in his/her account and pay the taxes which he/she might have avoided, these taxes will benefit the nation itself.

8. The newer currency notes of denomination 500 and 2000 will be much more secure and difficult to fake.

Corruption: Just changing clothes.

1. Corruption can never be uprooted completely by such measures as it is a tendency of humans and only a change within ourselves can be a solution.

2. The only effect this move will have is the inconvenience it is causing citizens and some small time corrupt people who might have cash stored away. The big fish will escape with small bruises.

3. Even though the notes are banned, there are host of other measures to maintain unaccounted and illegal assets.

4. The government will be introducing new 500 Rs and 2000Rs. Notes. This is pointless as people will again get chance to have unaccounted money because of the higher denomination.

5. Though some may not be able to use the huge stack of money they have stored away, most of them have their money in form of gold, etc. This will not be affected at all.

6. Since many will be using the unaccounted money to buy stuff like gold, jewelry, precious stones, etc. Under fake names, the prices of these commodities will increase a lot. This will again be an inconvenience to common citizens as these things will get out of their reach.

7. Many having black money have already kept it in tax havens, etc. This is a huge amount compared the amount we might find in India or as unaccounted cash money with corrupt people. So as such it will not bring back the unaccounted wealth stored outside.

8. The 50 days' time given for currency conversion is more than enough for tax avoiders to come with a scheme to make their other arrangements for their money.

It is a start. There can be no panacea for human tendency to be greedy and corrupt, but there can be measures to keep such people under control. Though banning currency notes may not be a long-term solution, but in the short term, it can have a huge effect as the stored caches will be rendered useless. It might not be a huge victory but it is a victory nonetheless. This measure when supported by other better policies and good governance will surely tighten the noose on corruption. So, it is important to support this venture and hail it as positive step towards corruption free India.
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Ankush Patel said:   7 years ago
Hello, friends.

According to my point of view a definitely bold move of the government to ban denomination of Rs. 500 and Rs. 1000 can never uproot corruption completely it just changing clothes because corruption is not in the form of currency notes it is in our blood. It can not eliminate only steps taken by government, If we want to eliminate corruption from our nation then first we need to change our mindset then only possible our country will free from corruption.

By banning of denomonation of Rs. 500 & Rs. 1000 notes will prominent effect those people who stored money with them in form of cash that is called as black money.

The main motive of demonitisation is to remove black money from the Indian economy and become digitalized.

Advantages of note ban.

1- It helps to stop illegal activities like terror funding, arms dealing from Pakistan, Bangladesh, and Some of foreign countries, gambling, money laundering, and also inflating the major asset class like real state, gold and due to denominitization all such activities will get reduced.

2- This step also removes a large amount of counterfeit currency from Indian economy. Because about 86% currency in Indian economy in the form of 500 and 1000 Rs notes. If this step would not take by the govt on 8th of November 2016 then after some years 70 to 75% of Indian economy will be full of fake notes.

3- If any person having black money decides to deposit money in his/her account and pay the taxes which he/she avoided in past, these taxes will benefit the nation itself.

4- The newer currency notes of denomination 500 & 1000 are much more secure and difficult to fake.

5- Banning of denomination 500 & 1000 will lead to fair election because all knows how black money used by politicians in the time of election. Political leader used to give their black money to people and buy their votes or drunk them for their votes. By banning of denomination 500 & 1000 it will stop at some extent and led to fair election.

6- Banning of denomination 500 & 1000 led to decrease corruption for some months because it takes time to find new techniques for corruption with new system by the damaged traitors.

Disadvantages.

1- Denomitization has created a sort of inconvience to people regarding exchange of their 500&1000 Rs notes.

2- It would impact on daily wage earners like drivers, maids, Plumbers, electricians, cooks etc.

3- People live in rural areas suffer more because in most of rural areas people don't have the bank accounts and don't know about online transit. System. And banks are also far from their villages. They left their work for 2-3 days and stand in question for exchanging their money.

4- People whose daughter, sister, son having marriage within those 50 days suffer more because on that time unavailability of cash in ATMs and also in banks.

5- Big earners left out of their black money in the form of foreign currency, Gold, and are hidden from taxes.

6-On the time of denomitization there are around 29, 527 SBI ATMs are in working condition out of 58, 541 SBI ATMs. Because of that people suffer more.

7-Now a days it is difficult to get change of new. 2000 Rs note because there is less number of new 500 Rs notes in circulation.

8- People who got injured within those 50 days suffer more because in hospitals they said that first you have to pay money of new currency notes for further treatment.

So, in conclusion, I want to say that this is very good plan made by our government But the implementation is not good it recovers the 85% of black money within the country that will help in future to increase the GDP of our country and remove some extent of poverty from country. And denomitization decrease corruption only some extent if we want to remove corruption completely we have to change our mindset and work honestly for the people.
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Sanjeev Kumar Jha said:   7 years ago
Friends,

I gone through all of your opinions regarding the issue in question. As some of you have already said that a coin has two faces. Similarly demon decision by the Govt to ban legal tendering of 87% of currency notes in the denominations of rs 500 & 1000 also has some merits and demerits as follows:-.

Merits.

1. To bring back black money into main stream, stashed with some rich people or to nullify it from its use by them. Inturn curb curruption.

2. To curb counterfeit note already in the market and to stop its making and infusion by introducing currency of high security features.

3. To creat hardship into terror outfits by sudden stoppage of monetary supply to them. Which was largely in these currency notes.

4. To inculcate habits of digitalised transcation amongst Indian common man, though most of the rural population are not ready for that. But you all will agree to that old proverb here "necessity leads to invention". Which is visible in our day to day life that now a days the poor rickshawala, rehriwala and small vendors started using paytm, bheem, upi, aadhar based and other card and wallet based transactions.

5. To control inflation. Which is visible in falling down of prices of pulses and vegitables which were heighest before this. For eg. Toor dal, Onion and Tomato. It is also visible in uncontrolled raising prices of plots and flats and other infrastructures, which has now came down to a large extent.

6. Further for a gain you have to face certain risks and challenges. That the peaple our country have very silently accepted this move of our Govt and made it a success, except few incidents which is but natural in such a huge move which affected the whole such a big nation. Unlike other steps in the past like forced family planning led to sampoorna kranti and emergency in the country due to strong opposition by the public.

Demerits.

1. The demonitisation though was a step taken in a right direction but could not achieve the degree of success it was expected to, due to lack of well planned execution.

2. It was certainly lacking execution part otherwise crunch of currency should not have arised.

3. It couldn't eradicate the black money problem as well as the curruption uoto the extent expected due to the deep rooted curruption tendency which had made a permanent house inside our veins, and for which the govt has to do complete blood transplant of these currupt cancerous people.

4. The promise by govt that the new currency notes can't be copied due to high security featutes, seems bogus since lnitial launch of these currencies as we could get the news of fake currencies of 2000 and 500 new notes within first tow days of its launch.

5. The demonitisation issue ultimayely converted into digitalisation of money issue.

6. The RBI has not yet revealed the data regarding amount of banned currency notes deposited till now.

7. This demont issue has adversely affected the GDP growth our country and small industry has also been adversely affected, thereby causing hardship for the poor people who were dependent on these industries and also labrouer class who work on daily wages and whose family wait till evening for the money to come from their daily wages for their bread and salt.

Finally I would like to ask you all a question that don't you think besides lots of demerits at present, this step is going to have a boomoing effect for Indian economy in the days and years to come by recovered black money, huge tax deposits into govt accounts due to increased digital mode of transactions which was hidden earlier by the businessmen?
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Debopriyo Sinha said:   7 years ago
I have posted this so long because if you know about it as far as possible it will definitely help you to tell during more time.

It is said that to make our environment corruption free, our prime minister had declared one process, that is demonetization. In that process 500 and 1000 notes were totally banned. Actually, there were several reasons behind to do that. The one of the reason was to reduce the market price of essential things. Because lots of corrupted people were not giving their proper tax to the government. That's why our govt had to increase the market price due to getting less number of taxes. And another reason was to reduce the black money as soon as possible. Actually, the planning of that decision had been processing since very long time. But in 2016 Nov it has done successfully by our government. Because of increasing market value of essential things, the middle-class people of India had been facing many problems. To avoid that situation Mr. Narendra Modi had announced demonetization. But was is so useful for our country? Let's talk about.

This was a good decision to decrease the black money from our country, but it was not the best decision. Because after declaring this process, the citizens of India had to spend very difficult situations that they never expect before. This process had destroyed the natural activity of human beings. The money crisis had been seeing over the country because the enough money was not available in the bank. For that reason, people had been standing in a queue of bank or atm to get money during very long time. Many of people had to bunk their office to take money. Even I had seen many of old peoples, they had to stand in a long queue for an hours and hours. To sum up all situation, I will say that the decision of demonetization process was not best.

But before criticizing about this, first of all, we need to know the aspects behinds the demonetization. We should know the intention of making that decision, that was totally for our profit. If we are true nationalist then we should co-operate with the government. But our problem is that we always expect the result will be in our hand at an instant. We know we were unable to stop corruption but this message can make fear to all corrupted people.

Banning of notes, actually, it didn't affect more to the rich peoples, but the poor and middle- class peoples were greatly affected. People like who use to work daily wages, they know if they couldn't able to earn money, their family will be died without getting food. So they had to take care both of things like they had to deposit their wages in the bank and earn for next day.

I think the corrupted people were not totally affected for that sudden decision of the government. Because they know how to save their black money. They did their job with 500 and 1000 notes, now they are also doing the same job. They will never be stoppable. Instead of doing this I would recommend our government to take care the every bank transaction details of every doubtable corrupted people deeply. That can make them aware to hide their black money.

Thank you!
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Midhuna eswar said:   7 years ago
It was a great step taken by our government to taken out black money. Demonetization is a great move but it was not implemented the way it should have been. Because of these change the general people in India they suffered a lotIn my view, banning of 500 and 1000 rupee notes is just like changing clothes for wealthy people because they changed their money without going to any bank and they do not stand in queue hours and hours in banks, they changed their money without knowing any pain. Most of the rich people had great connections with bankers and by their influences, they found it easy to change their money. Their black money was given to the middle class or lower class families to deposit to there a/c and after the end of Demonetization, it was taken back in any form. The only people affected are the middle class and poor ones. It was a shocking news only for middle and lower class people. They were standing in a queue hole day but at last bank employee announced that there is no cash available for today. , worrying for the cash they have just pulled out for their daughter marriages, no acceptance of old notes in hospitals. Middle class people faced lot of problems but rich people changed crores of money without any limit. The result after one year is in front of all. The execution was a complete failure. It is just a major setback of a very powerful action with no reaction at all. Therefore, can say that the system of corruption is still same it has just changed its clothes. But Everything cannot be controlled within a short period. Corruption needs to avoided, so we cannot able to destroy it completely. We have to process it and destroy it by step by step. . So before taking any serious action the government should sure that the medium class people and mainly the poor people will not get affected a lot. That's thier irresponsibility in an Indian economy the medium class people plays a very imp role. So, firstly make fully aware of them and then implement on that. Then it will be more efficient.

AGANIST:

According to me, Banning of 500 and 1000 is good move to avoid corruption. Everything cannot be controlled within a short period. Corruption needs to avoid, so we cannot able to destroy it completely. We have to process it and destroy it by step by step. This banning of 500 and 1000 notes is one of the steps to avoid corruption. I Accept many people suffered a lot by this action. First of all, everyone understands this, No pain no gain. We have to suffer a little to avoid some portion of corruption. Rich people are not suffered by this, I accept. But everyone must know how many currency notes are thrown in the dustbin and in the street. This money belongs to rich people. This is a just a warning to them, to pay their taxes correctly. Switching over to new note is also needed. We have to keep using our old 500 and 1000 notes for past 10 years. So it is time to change it. Change must come from us. If we behave and act in a right way. Everything will be right. So, conclude by saying that no pain no gain. We sacrifice something to achieve something. Thank you.
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Parag saurav mishra said:   7 years ago
DEMONETIZATION IN ITSELF IS ONE OF THE BIGGEST FINANCIAL CHANGE THAT HAS TAKEN PLACE.

WE SHOULD CONGRATULATE THE MODI GOVT FOR:.

1. TAKING SUCH A BOLD STEP.

2. ALMOST SUCCESSFUL IN REPLACING NOTES IN FEW MONTHS THAT TOO IN SUCH A BIG COUNTRY LIKE INDIA WITHOUT MAJOR UNTOWARD INCIDENT.

3. HE HAS PROVEN THAT HE WILL NOT SHY AWAY FROM TAKING BOLD DECISIONS.

4. FOR HUGE REDUCTION IN INCIDENTS IN NAXAL AREAS AND NAXALITES GIVING UP IN HUGE NUMBERS.

5. STONE PELTERS IN KASHMIR REDUCING DRASTICALLY.

NOW, TO BE FRANK AND HONEST, THERE WAS HUGE DIFFICULTIES METED TO COMMON MAN OR POOR PEOPLE.

REASONS ARE AS FOLLOWS:.

We can't deny the fact that we as a common man of this nation were forced to pay bribes, or indulge in malpractices of corruption at least once in our life, may be willingly or being coerced. But we can't deny that we haven't indulged. So if it has to be wiped, we need to jump in, we need to make sacrifices. We can't expect from ultra rich people to do so. They wont, they never have done. Be it freedom of struggle or anything. Its common man always. SO if we need to get rid of corruption we should be ready to make such sacrifices.

Second thing, I work in one of the biggest psb, and I have noticed the trend. You give a man a fish, you feed him for a day, but if you teach him fishing, you feed for his lifetime. But this does not hold true in nation like ours. Because people just want fish for a day. They are ready to stand whole day in queue for subsidy, but they will not go for a work to earn a day's wage. Many people (poors) have taken lot of commissions from factory owners, or black money hoarders for exchange of their money. Alone Modi can't bring change. When it was expected to get much needed honesty from people of India, we have failed him. Be it Bankers, or RBI officers, Or Poor/middle income people, we all have helped the corrupt people to have a escape. Lets not at least blame Modi for our fault.

Third, People of India needs, result in a day/month. It won't come. It will never show positive or good results so soon. Let's be patient for some years before playing it down.

Fourth, yes it could have been planned and executed in a better way, but how? Please explain this.

Had Rbi printed those notes before hand in large numbers, news would have been spread like a wild fire. I remember getting a pic of rupee 2000 note before demonetisation in Watsapp. Just imagine had Govt printed rs. 500/- note, and had this image been circulated, hoarders would have got fair idea that govt is going to replace the old 500 or ban it, and then if we imagine the consequences, that would be huge.

But yes everything has a scope of improvement and so does this too. But in my idea, I really feel Its more to say than to implement.
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Rahul Prasad said:   7 years ago
Hello, everyone!

India has been a victim of corruption from the beginning which has resulted in the growth of the gap between the rich and the poor, the distribution of wealth has been worsening day by day.

The motive of demonetization was obviously good. The government had done some homework like connecting almost everyone to bank accounts and making Aadhar mandatory.

The move was appreciated by almost all sections of the society initially. Even a poor farmer who had to wait hours outside the bank was saying that my pm has done a great job.

But, the dark side of this step started being seen soon. On November 8 itself, Gold shops had operated till late midnight. Many changed their blacks into whites.

Many bank managers were caught in the scandal of currency conversion. So, into the corrupted people hardly suffered.

Talking about the suffering of common man, ATMs were not organised up to the level of requirement. The poor middle class suffered a lot.

The government should have anticipated these before taking the step.

Proper CCTV's should have been installed in banks. Gold stores should have been ordered to be closed at that very moment. Police should have been deployed in banks and every transaction should have been done under CCTV surveillance. (since at many places it was found that CCTV wasn't working).

ATMs should have been organised well. The Government should have circulated more 10, 20, 50, 100 Ra notes in advance for some months. Govt should not have introduced 2000 Rs notes. These steps could have made the plan successful.

So, overall I'll say 'demonetization has not been successful'.

But, it gave some outcomes which have been very good for future India.

1. All the fake notes and agencies producing them were restricted.

2. Digital payment has been encouraged which significantly reduces corruption and has many more benefits.

3. It has given a sense of fear among corrupted people that things can become worse for them in future anytime if they don't stop their wrong practices.

IT was a bold move. It had to have some results. Things could have been anticipated and make better but we cannot deny the fact that it did have some good outcomes too.

I'm thankful to the current government for it is doing something to bring the change and we all should be.

Thank you!
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Mahesh said:   6 years ago
You should note that the government had very good intention behind demonetization. The government was aware of problems it was going to create, but still it took courage to do it. But I don't think it succeeded as much as thought.

When demonetization was announced, it was a big surprise for everyone. Most of the people welcomed this, may be because most of the people liked were on government's side. The government said this will curb the financing of terrorist activities and will eradicate black money. People had never seen this kind of thing before, and they believed it, they had really too much expectations. They thought this demonetization is going to bring miraculous changes. But today they aren't feeling much changes.

So did it fail completely? Or why it did not succeed as thought?

The demonetization did affect terrorists. They could not convert the money to new notes. So of course it the terrorist activities reduced for some time. But the terrorists are mostly funded by Pakistan or gulf countries. So after some time, they could able to receive money like before.

If we talk about corruption, the people who had made money by illegal ways or the people who had hidden their income to prevent taxes got enough time and enough ways to convert into new cash. But people who had considerably more money had no ways but to deposit it in bank. So the at least most of the money came under banking, which also provided capital. But there were large number of people who had deposited more money. One, it can't make out which money is honest one and which money was earned illegally, so the government could not make all people to ask to pay taxes. But of course it made big tax hiders make them pay. But as most people's money have come under banking, in future government can make more easily more people tax payers.

And because of demonetization people understood how corruption can be reduced by using banking and also the importance of digital payments. India saw big improvement in digital payments after demonetization.

So, the corruption can't be much controlled by demonetization, but corruption prevention wasn't the only intention behind demonetization. Demonetization will definitely bring positive impact on Indian economy. So demonetization is not big success, but not a failure.
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Srini said:   7 years ago
Why ban Rs 500 and Rs 1000 notes?

In two words: black money. Unaccounted money, often used in any form of corruption or illicit deals, usually takes the form of high-value notes, which in this case are the Rs 500 and Rs 1, 000 bills. In his speech, Modi specifically pointed out that these large-value notes were being used to finance corruption and fund terrorism.

The Financial Action Task Force, a global body that looks at the criminal use of the international financial system, notes that high-value bills are used in money laundering schemes, racketeering, and drug and people trafficking.

In India, the Rs 500 and Rs 1,000 notes also constitute a huge percentage of the money spent by governments, political parties and candidates during general elections. A Centre for Media Studies report showed that nearly Rs 30,000 crore was spent during the 2014 general election, while official spending only accounted for Rs 7, 000-Rs 8, 000 crores.

This of course only scratches the surface: major industries such as real estate have historically been conduits of black money.

The most important fact, however, is that the share of large-value notes has only been increasing over the years. While some of this is no doubt due to the natural growth expansion of our economy, it also hints at the increasing size of our black money economy.

Modi's decision to decommission Rs 500 and Rs 1, 000 notes should ideally not hurt most individuals in the long-term, although it will have a significant negative impact on the working class and small and rural businesses in the short-term. Economist Ajit Ranade's back-of-the-envelope calculation shows that the highest face value in India should be around Rs 250; simply put, Rs 250 is the highest-value note that most Indian individuals should need.

On the other hand, what needs to be noted is that there's no good estimate for how much of India's black money is in forms other than currency physical notes such as gold, jewellery, land or any other form of wealth. Therefore, while banning Rs 500 and Rs 1, 000 notes will tackle the black money that is in the form of hard cold cash, it won't affect other forms of black money. On similar lines, this move will, obviously, have little effect on black money stashed away in foreign tax havens.
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Shubham Thapliyal said:   7 years ago
Yes, everyone knows that after banning of 500-1000 RS notes limited amount of money can be kept within us. Also most of the black money caught had turned into ash for those who stored it for future purpose. In India, people are just thinking to earn more and more money but not how money should be utilized for social purposes. They don't understand that money is not everything. Living a peaceful life full of basic amenities so that we don't have to beg Infront of anyone. And the fault is not totally theirs but in our society, we are never taught to become a helping hand. We are just taught to become a golden egg. EG Sometimes it happens that we don't have to follow the rules and regulations and we don't act accordingly to government and Constitution. We are standing many times in a long que for filling forms for license, identity cards. Taking that into consideration, there would be some places where we have to stand in hot sun and also it is necessary because without such important docs we don't bear social identity. What will one do?

Stand for two hours in hot sun or give money to agents and get the work done swiftly. Think by yourself because upto some extent man can leave comfort but not time. So topic was banning of notes but what affect it did was anti-corruption upto some extent. Corruption is not an evil which can be removed such easily but taking step is mandatory. Because from now atleast upto some extent corruption is uprooted. But scarcity of things causes corruption. There is saying in Hindi that " Kuch nahi se Kuch Sahi". Whatever our prime minister has done absolutely requires planning and dedication so just take a right step. It will make difficulties for a while but as the time goes on it could be handled in a proper way. So, yes corruption is starting to uproot but we don't have to sit at home Infront of TV and pass comments on how government and public servants should do but also take a right step from our side which will contribute to our economy to develop speedily. And changing clothes can't change qualities of person wearing it but here demonetisation had changed qualities of our economy and given chance for it to develop. Hence conclusion comes at end that yes banning has played important role as anti-corruption agent.
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