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

Hello, everyone.

I am Ajay Singh. On 8th Novembe government banned 500 and 1000 notes. This was greeted with positive as well as negative response. The Government, as well as people, were of the view that it will reduce corruption to a great extent but nothing sort of that happened. People with black money easily made their way through demonetisation and converted most of their black money into white money. Even many officials earned a lot during this process. According to me, the main sufferer was the common man. This step of the government didn't really help in curbing corrruption because we Indians always find a 'jugaad'. In my view, the government need to take more strict actions to curb corruption simply banning notes is not going to be helpful.

Hello, everyone!

Banning 500, 1000 notes was the very first substantial step that any government till date has taken. Banning them showed the government the modes through which people launder black money thus putting a stop to them immediately. It did give the people some problem but except the Congress, I could not see anyone else complaining. It has helped uproot corruption because the government announced the connecting of Aadhar to Pan card (providing transparency in income and expenditure) immediately after and encouraged cashless transaction, the government took out yojanas to award people who did cashless transactions. All this only shows that India is moving though slowly yet to becoming a super power.

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.

Hello good evening.

In my opinion, ban of 500 and 1000 notes is really a big mistake. The demonetization affected our whole Indian market and we didn't recover from if after a long time. The whole financial problem that we face is an after effect of the demonetization. People waited a lot in front of ATM that is the main achievement of the demonetization. Yes there is lot of corruptions and black money in our country but their proportion is very low. Not all the people are engaged in corruption. For destroying low amount of corruption don't need to disturb all other people of our country. Thank you.

In my point of view, there is no change in Indian economy after demonitization. After announcement of demonitization I think it would be helpful for the uprooting of corruption of India and it results in economic growth of India. The idea of demonitization is very good but it is not properly implemented. After ban of 500 and 1000 the middle class people are struggled and in that struggle also they take it in a positive way because they thought that it is first step for uprooting the corruption in India. Thats why they take it in a positive way. At the end the black money holders simply exchange their money. In their way of thinking they simply wearing a new clothes instead of old clothes.

Thank you.

Hi everyone.

In my opinion, demonetisation hasn't done any good, in fact, it has created many setbacks such as many of the industries were shattered, lakhs of workers lost their jobs.

India's growth rate has been reduced due to demonetisation. During the demonetisation period, people faced a problem because there was no management done by the government to provide new currency to the public.

People get lined up for hours for withdrawal of money from ATM. Some people lost their lives while standing to get money from the ATM.

Hello everyone.

Demonetization of 500 and 1000 notes which was initiated by our Prime Minister NARENDRA MODI was to corrupt black money and avoid corruption. It effected the rural people the most as availability of banks are least and therefore staying in the queues in front of banks and exchanging of notes became the toughest. Demonetization brought out the people who were having the black money but, not all the people caught. Therefore, we can say that it reduced corruption to some extent. Thank you.

Hello everyone,

According to me, every thing has two sides one of them is good and another is bad, so ban on 500 and 1000 notes these rule also have to sides.

Now first point of view, its very good decision taken by government to ban on 500, 1000 notes thats why there will be control on corrupted people and much more corruption Also be control.

But in other hand common people has to suffered much more problems. So according to me government provide first alternate option to people and then only they have to make this type of rule.

Thank you!

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.

I am Lavanya. Coming to my point of view, demonetization is a good method. But what the procedure they take that's absolutely not correct. Because Modiji has taken his decision immediately for most of the black money people. But that affected mostly common people. Already, my friends said after that so many people in the queue at ATM centres. And those who have black money, they changed their currency with common people by giving a commission for that. So, that there was safe, but a lot of people struggled for that. After that, government Introduces new notes that is 2000, 500 rupees notes. OK, removed 1000 & 500 rupees that is good. But what is the use of introducing 2000 rupees? It is easily secured their money for black money candidate's. There is no use of that. So, finally what I saying that demonetization of currency is over, but there is no change in our country.