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

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801 comments Page 2 of 81.

Ankita Roy said:   7 years ago
November 8, 2016 was a nightmare to all of us after getting the information from the news channels of banning the 500 & 1000 notes.

It was a great step taken towards the anti-corruption to remove the black money from the country. But the impact on the 3 classes of society was different from each other. The 3 classes of society as defined mostly are low, middle & high. Talking about low-class society (people below poverty line) would not have much cash in 500 & 100 notes. But the little they had, it wouldn't be exchanged at banks as most of them do not have bank accounts. The next class of society is middle class. Keeping the huge amount of money with ourselves not necessarily means a black money. It could be due to many occasions which need it like marriage, house construction etc. During the demonetization period, these are the people who suffered. As a bank had defined amount limit on the exchange of money. The third category society the upper-middle-class & high-status society, who are suspected to have black money. The question arises here "Would they keep hard cash or will it be in some other form. This class not only consist of the businessman but all the politicians and other high authority holders. It's quite obvious that the decision of demonetization was not taken alone by the prime minister of India. It could be with a group of members which include politician and other bodies like a bank. They were aware of the step before it was applicable. Now, this could let us think that precaution measure have been taken by them for not being black money holder. It is important to focus on the denomination it's the ban of 500 & 1000. This is done to avoid the large amount transaction in cash, a step to avoid black money. But a new denomination of 2000 is introduced the very next week. It's quite contradictory the way steps are taken and the implementation of it.

However, it could be implemented in a better way by setting a limit on "earning & property and to track them down by income tax raid & not disturbing the whole nation. As a citizen, it's our duty to support & encourage such steps which could benefit our nation & the people.
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BIKASH PRATAP SINGH said:   7 years ago
I believe it was a very good attempt by our prime minister to come up with the idea of demonetization, with a view of uprooting corruption; I would rather say that it was a very bold and powerful step that could have been taken by anyone in past 20 years of Indian politics, but then when I see whether this move has actually contributed towards uprooting corruption I would say "no" ; the example to support the same is a small article that I came across just a few months later demonetization was declared and the nation was suffering through a serious financial chaos.

The ultimate motive behind demonetization was to completely wash off the trend of counterfeiting currency by introducing 17 security features or may be 18 I guess out of which 14 were counterfeited in the month of January itself as reported by an article in Times of India where a bag full of 2000 Rs new currency notes was confiscated on grounds of same declared as counterfeit within 3 months of demonetization not because counterfeiting practices are touching skies, but the reason being that our country spends less than 100 Rs to mint a 2000 Rs note, our practice to reduce cost of minting which will surely attract more of counterfeiting which is nothing but again provoking corruption as compared to countries like china and US who spend around 3 dollars to mint a one dollar, this discourages the counterfeiting because it will cost them more.

So the main perspective to wash out corruption failed at its very initial step also we have been hearing of instances where people with enormous amount of cash in their houses have somehow managed to escape the situation either through targeting poor people who agreed to deposit it in their name against some cash rewards also we have been hearing in media about incidents of bank manager accepting bribes against exchanging cash amounts.

So although the movement was very bold, but I believe it failed miserably because the uprooting of old corruption had sown the seeds of new ones to take another shape and to show the entire civilization another form of disgrace.
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Arpita said:   7 years ago
According to the government record, in October 2016, the 500 Rs note and 1000 rs note accounted for about 86% of the Indian economy, and only 24% of the notes were being circulated. Rest notes had been hoarded up by corrupted authorities of India.

There had been the case of counterfeiting of notes also, the paper on which the notes are printed was being circulated secretly from Germany and Pakistan and illegally notes were being printed and circulated in the country. These cases made Mr. Modi takes a step forward and brings this accrued money back to the Indian economy. The step he took was right but the way it affected the common people constituting of more than 75% of Indian population. They suffered each day since 8th of Nov and till today in some regions. Still, in some North East regions, there is a lack of cash in banks. City life has flourished again, and the people in cities got affected for a few months by standing in lines of 100s to take out just 2000 Rs from ATMs that can fulfil their need for just a few days.

For the villagers and for the labourers who work on daily wages, whose family survived on the regular 100-200rs that they earned, their life came to dark. Few more cases of marriages around that period were heard, the dowry was not accepted because of 500-1000rs currency, although dowry should not be taken still that poor person arranged so much money for his daughter's marriage and the money he accrued since years got wasted and the marriage got cancelled. Many farmers like him committed suicide.

These small factors that together become our country's biggest failure were not noticed by few higher authorities who must have known the consequences of such a huge step. Although some corrupted money got back to the economy it was at the cost of many poor people's grief and death. And now people in India are deciding who was more valuable, the people who died or the black money that's brought back and will be gone soon to some corrupted pockets.
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SAYAN SARKAR said:   7 years ago
Hello everyone.

Demonetization has several effects in Indian economy. The Announcement of banning 500 and 1000 rs note all of a sudden and withdrawing 86% of currency from the market left people in a limbo. The intention behind this is noble of course but RBI and GOI should better prepare for the aftermaths. Banks have not enough cash to their volt to tackle this situation, as a result, many people had no money in their wallet instead of plenty of money in their bank account. Before withdrawing the currency the banks should prepare to replace them with new 500 and 2000 rs notes. But they had not a new currency that very moment. So people had no money to buy things for their day to day need. Local markets gone out of cash so, naturally, the whole economy came to a stall. Growth rate crashed. The Long serpentine question in front of the bank became a common scenery. Of course, it effected the middle income and lower income group of people. Daily wage workers were unpaid because of cash shortage. This mess created a lot of protests in many states of India. Only 5-6% black money in India is in form of cash what about the rest which is still stashed in form of gold and property. The upper ceiling in cash withdrawal and the monthly transaction is a good initiative. But govt should better prepare before banning currencies to avoid the problem of middle-class people. The positive part is demonetization played a vital role in India's dream to become cashless economy. Corruption is uprooted of course but not wholly. Digital payments and the cashless economy is the essential tool for covering the country under tax network. Now local markets and small vendors also accept cashless payment. It was possible just because of the cash crisis in the market for demonetization. So, I conclude my statement by saying that banning 500 and 1000 currency is not fully seizure of black money in India, also not totally just changing clothes.
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Sourav said:   6 years ago
If you have 500 or 1000 notes then frame it. It depicts an end of an era. The sudden, surprising and bold move by the government to ban the denominations of 500 and 1000 notes. It left all in panic. As we that every change /revolution need a bit of screifice.

A huge and costly dent on black money.

1) The prominent effect on that people who has the money in the form of currency. This will hit the unaccounted money more effectively because most black money is hidden in the form of 500or 1000. The ban will render the 500 and 1000 notes useless.

2) this move will enormously effect the terrorist org. And arm buyers so they can never be able to legalize the possesing money.

3) they can also be able to remove chunk of counterfeit from circulation.

4) the income tax dept. And bank also keep their eye on the big amount of deposit or tranfer to other account. The black money increases the inflation as the cash transation is most prevalent in India. This will tighten the noose on illegal and benami assets.

5) if someone want to return black money the can give and it will benefit the nation itself.

6) the new 500 and 2000 notes are more secure and difficult to fake.

Corruption just changing clothes.

1) this cannot be uprooted completely because it is human tendency and nature we can control it by just ourselves.

2) the only it affects the citizens and the small time corrupt people. The big fish escapes from small brushes.

3) most of the corrupt and imposter person are hide their black money in the form of gold, jewellery, precious stones etc.

4) The people will get another chance to make unaccounted money.

5) more black money than in India is stored in the tax havens and it nearly impossible to get that unaccounted wealth from outside.

It is a start. There is no panacea for the human tendency towards greed and corruption. It is not a victory but it is a victory nonetheless.
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Riyas M K said:   6 years ago
Demonetization was one of the most brave and bold decision of Indian government. It was a move against black money, counterfeit currency and to abolish the funds for terrorism. But we cannot say that the demonetization was a success. Let us analyse it's targets one by one, starting from black money. It is a fact that India had thousands of crores of black money before demonetization and most of them might be in the form 1000 and 500 rupee notes. But most of the currencies that were circulating before demonetization have returned to RBI after demonetization. It is clear that the people who had black money with them have found their way to change it to new currency. Counterfeit currency of the new currency note also was caught from smugglers in a few weeks after demonetization. So this objective also was not achieved. Terrorism activities activities had reduced for a few weeks after demonetization, no incident was reported even in Jammu kashmir for a few weeks. But even terrorists have found their way to find the fund for their activities. So it is clear that demonetization could not achieve it's objectives. Let's check what were it's impact on the life of a common man. People had o stand in front of ATMs for hours to withdraw the new currency. Remember that all of them were standing for the money they earned, not for a money given free. Some people died paralyzing while standing in the queue. I have read news about a girl who had a kidney problem and had no money to treat it. Many good people helped her and made the money for her surgery. This money was deposited in bank before demonetization. But because of the restriction on the withdrawal of money from an account and shortage of currency they didn't get the money in time for her surgery and she died. Demonetization caused a deduction in the GDP of India. So I cannot say that demonetization was a right decision.
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Munish said:   7 years ago
Hii everyone,

The initiative taken by Modi Ji on 8th of November 2016 was a good step for eradicating corruption, or reduce the black money to huge level in nightmare only. As there was no Pre-planing done for this that what should be the consequenes of this on people of poor & middle order. It should be the responsibilty of our PM to discuss everything with the RBI officials & should print the New notes in excess but confidentially, even without discussing anything with their party members because although this proved to be benificial upto just 2 to 3%, because only those who don't have high approach are treated as defaulters on the other hand the fact is that the India total income are just in the hand of 1% of total population these are high level persons or in some way connected with the political parties even they are exchanging their notes beyond the mentioned limit for a week, and also withdrawing more money than the limit decided by the govt at that time. They all changed their notes before the mentioned last date to change the notes, so in my opinion their is no profit of doing demonetization as the black money holders changed their old black holdings with new ones, It should not have implemented as this without curing the curse has proven deadly for many poor people who have no fault in all this, they loose their lives standing in long ques, one with approaches changed their notes with great ease sitting in Ac rooms.

Also the introduction of 2000 notes is totally a medium to increase the corruption to more level as if earlier only 20 lakh can be carried in suitcase now 20 crore can be carried in the same suitcase. There is no such rays in these notes (2000) saying all these nonsense stuff that these can be traced by using equipment are nothing but a way of making fool of people.
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Viku Kumar said:   7 years ago
On the night of 8th November 2016, when PM announced demonetisation of 500/1000 Rupees notes, I thought that it would benefit Indian economy a lot, but now I think, that it was not a very well planned decision.

I am writing against the motion, I.E, corruption is not uprooted, its just changing clothes. In order to support my point, I have few points which are-.

1- 87% of the currency in circulation in the economy was in the form of 500/1000 rupees notes, banning it has created chaos in the economy, and the worst sufferers of the move are poor and the middle-class people.

2- The rich class people who are actually the hoarders of black money, have exchanged their money by bribing the bank officials. Several raids conducted by IT officials found hoardings of crores of rupees in new currency, despite the fact that the ATM withdrawal limit was 2400 Rs/day and 24000 Rs/week from the bank.

3- Middle class and poor have actually faced the worst effects of demonetization, standing in queues to withdraw money from ATMs/Banks.

4- Newspaper reports shows several persons have committed suicides due to non-availability of money, or died to stand in queues for hours.

5- Around 15 lacks crore money was estimated to be in the form of Rs 500/Rs 1000 before demonetization, and around 12-13 lakh crores have been deposited in banks, so not much money is recovered and is obviously not the worth of what the people have gone through those 50 days.

Finally, I would like to conclude that it was not well-prepared decision, the Modi government has started demonetization by saying that it would uproot corruption, but ended by proposing to adopt digital modes of payment. The actual figures of black money recovered is still not revealed and that clearly shows that not much money was recovered from the move. Thank you.
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Charles said:   5 years ago
Hi, everyone.

Banning 500 and 1000 rs note is a good move in government I appreciate it but the way they implement especially time they implement is wrong. Banning popular money from the entire country one at a time is a bad move. I can say government has not made any plan before implementing it do you know time they did it's night time 8 pm on November 8 even it's day time it would be fine everyone would be aware of it but in night time many people don't know that these money was nothing just paper that is banned and poor people become more poor and wealthy people and people who admitted in hospital people who about to book marriage every one were been affected but people who actually need to be affected just came in car to banks and pick up require money beforehand but poor people or ordinary people stood in a line for a day and go home empty hand as that money are taken by so-called wealthy people so we cannot say that corruption is uprooted but we can say "it's just updated "nowadays we cannot see 2000 rs notes even in banks we don't know where they are but we can say they again become corrupt money aka black notes.

So as per the topic these bans are just changed of clothes but this should have been discussed before implement and my idea would be tested in particular state and see the outcome if that would have worked we would have to make it globally that is nationally banned notes or else make enough preparation and time and camp to change money in this big nation so not India go and shout before a bank and pressure them. That would have decreased the corruption but this ban actually made those wealthy people bag wait for less since for carrying 40, 000 rs at least they need to carry two briefcases but now just they need one briefcase to take it that's the actual difference.

Thank you.
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Sanjog said:   7 years ago
First of all, the demonitisation move was poorly planned because of which there were a lot of protests in different states. Several deaths occurred which could have been averted by a better plan. Hospital authorities refused to provide medical help in exchange of old 500 and 1000 rupee notes, which resulted in a lot of deaths. Due to sudden rush for the exchange of old currency notes, a lot of accidents occurred. And not only that, farmers also faced problems in buying seeds needed for plantation because they didn't have enough cash with them due to cash shortage in banks and ATMs. Demand for food products showed a sharp decline because people didn't have enough cash to purchase the products, due to which the small food stall owners, ration shops who didn't have any PIN pads (card readers) to accept payments had to face a huge loss. And by the way how secret was this plan?on Nov 8, 2016, demonitisation was officially announced. A fortnight before this announcement Dainak Jagran had published a report in which the some RBI officers had spoken about possible demonitisation of 500 and 1000 rupee notes. And not only Dainak Jagran but the similar news was also published in the Hindu Bussiness line on Oct 21, 2016. Not only these two hints but the chairman of SBI had also spoken about the possible withdrawal of 500 and 1000 rupee notes in April 2016. Now, what do you think?the black money holders hadn't read the news?

The amount of trouble that the common people who didn't have any black money or were already facing shortage of money had to go through could have been avoided by a better plan, in which the black money holders couldn't have got any time to spend their black money, rather than giving them hints and making them aware of the the decisions to be taken to catch hold oh them.
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