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

The move by the Central government and the RBI to pull out the old Rs 500 and 1000 currencies out of circulation is indeed a bold move, with the stated objective of hitting hard at corruption. However, the hasty implementations of such a move have taken the country by surprise and we are all familiar with the inconvenience it has caused. Now talking about corruption, we may be inclined to agree that yes corrupt people have been caught and money in huge amounts confiscated, according to media coverage and government revelations. However, we need to be enlightened to the fact that the sharks swim deeper. Those with the power and reach don't stash the money in their houses but dump it abroad. And only the small fishes fall into the net.

Also, thanks to confusions and misinformation, we are aware of people forging even new bank notes. This has given a new face to corruption. People even are able to whiten their black money, with some help. We can accept that corruption is a social state that can never be uprooted till human greed prevails. Yes, the move is a welcome one, but a ton needs to be done still for achieving the results the nation desires.

Hello everyone!

I will not say corruption uprooted completely but I will like to show some statistics. According to world bank, India has 280 lakh crore of tangible wealth out of which 25% is black money. So it comes out to be 70 lakh crore out of which only 10% is in the form of cash other is invested in gold, real estate etc. So total black cash is 7 lakh crore. Now let say they have converted 80% of this in white money still left with 1.4 lakh crore black cash that has no value. That's kind of a big deal, Isn't it? Moreover, due to this move, the black money holders got some fear that government can do something like that and that too so secretly. This fear is important. Banning note will also help in reducing counterfeit currency which is being created in India and neighbour countries and funding various terrorist groups. All the counterfeit currency is useless now and it will take the time to produce technology for new counterfeit money till then no attacks and all in India. So I think that it is a very bold and strong step by the government toward corruption.

I would like to raise few points regarding this:-

1) How much black money is eradicated? only 12%! Rest of it is still in the form of gold, private properties and SWISS bank account. Just for this, you had shaken the whole Indian economy, affected living of middle class and poor.

2) GDP had declined from 7.6 to 7.1% after the announcement of this act.

3) What is the surety that with new notes of 500 and 2000, no hoarding can be possible? Notes are same, just the presentation that makes them different.

4) Not for the first time, demonetisation occurred in India, in 1946 (ban of 500, 1000, 10000) and 1978 (ban of 1000, 5000, 10000), and till now corruption had increased rapidly.

5) Statement of our former finance minister " If 86% of currency is immobilized, then the economy can function".

So I think demonetisation will not prove so much fruitful as we Indians are expecting.

According to me, it is very well known to us all that only 12% of black money were evaluated after demonetization, the rest are in the form of gold, private property and swiss bank, so this major part of black money is required right, and this is not the first time demonetization had occurred, so creating these event just for political purposes is not fruitful, and because of this middle class or poor get suffered.

So demonetization is not the right way for bringing black money back, there must be some other way around without affecting the middle-class people and poor.

In my point of view, corruption is not totally uprooted it just controlled. Because still we have more black money in our country.

Hello guys,

According to me, As every coin has two sides like wise peoples also have different perspectives. If you are looking towards Indian economy if we compared our GDP with 2015 then you will come to know that there is growth of 0.6 % previously it was 7.0% now it is 7.6%.

Through demonetisation not all black get demolished but few part of it get demolished and this contribute alot in the growth of economy. In the drought of money government suggest us to use cashless transactions during demonetisation, this again improves the growth of the economy and reduce corruption. So, It is not just changing clothes it gives us a direction and some positive vibes about changing our nation towards developed nation.

Hi,

According to me, the demonetization move initiated by the Indian government and the central bank of India is somewhat useful for our economy, I strongly disagree to those who said that this movement reduced the GDP rate and it's a complete failure. But this point is on a short term view of that. While considering a long term goal it is very useful and appreciable. It's a true fact that the corruption here cannot be uprooted totally. But this move helped to reduce the corruption for a 20%. So I think it was a good move.

First of all, I wasn't against demonetization but there were few points to be considered.

1. In 2012, central board of direct taxes had recommended against demonetisation saying in his report " Demonetisation may not be the solution for tackling black money or economy which had largely invested in the form of the benami properties, bullion, jewellery ". Further they suggested that black money holder kept their assets in the form of property only 6% in the form of cash, hence for curbing only 6% black money, this will become a big strategy.

2. Also, there were few practices of demonetization done in past in 1946 & 1978 which was not fruitfull.

3. Demonetisation led to unavailability of cash to purchase food products this led to the sudden drop in demand, hence food product price decreases. Hence, for a farmer it is very difficult to recover transportation cost.

4. How much advantages achieved by Demonetisation are not disclosed by the government.

5. They don't take the preventive step because instead of releasing 2000Rs notes they should release 500Rs notes first to ease common man pain.

6. How many currupt people arrested ? Why politicians not trapped , aren't they currupt?

Hello, Everyone.

According to opinion demonetization, a step taken by Indian government against black money and their holders is not an effective step, As we all know black money holder have their money much in the form of gold, private property and in SWISS bank account. So just by banning 500 and 1000 notes, we are not uprooted corruption because what is surety that with new currency there will be less or no corruption.

Hence by banning 500 and 1000 notes, we are just changing clothes because notes are notes.

Also instead of affecting the life of black money holder, it has shaken the life of whole Indian economy especially poor people who have their money in form of cash.

Lastly, we can say that just banning 500 and 1000 notes not a major step toward uprooting corruption.

Thank you.

According to me, Demonetisation is the most welcomed initiative by our government because it did had an adverse effect on the corrupted politicians who were put into a bundle of misery. It does bring change in financial state of the country especially considering the GDP.

It was the best weapon for the eradication of Black Money. Moreover, Demonetisation was the Nightmare to all the cunning and the corrupted politicians.

Though the decision had caused the common people to struggle to some extent, Demonetisation really helped in uprooting the corruption and we should welcome such changes which really help the society in a great manner.