How demonetization is affecting common people more than black money holders?

Group Discussion
Points to remember before you participate in this discussion:
  • Assume you are one of the members of a real group discussion.
  • Take the initiative to participate and contribute your thoughts.
  • Contribute your positive thoughts towards providing the solution.
  • Post your thoughts here.
200 comments Page 1 of 20.

Prajwal Kanase said:   6 years ago
First of all, we must know what is demonetization. What was announced by our Prime minister? What happened to our economy on 8th November, 2016 and months after that? So, demonetization means replacement of notes which are currently in working condition in economy. Our Finance Ministry announced that 500 & 1000 notes are banned and we have to replace them by 2000 & new 500 rs notes.

So, this is a big decision which requires lot of preparation. In Indian currency these notes' amount was more than 80% and in India most of the business is done in cash mode. It was disaster for the common people as they have to stand in long queue for hrs to replace old notes.

Now, I'm going to mention 2 main problems faced by people. 1. After standing in hrs, if I get 2000 rs notes and I went to buy stuff of my daily need, then I didn't getting any change. Because it was not available. 10, 20, 50, 100 rs notes were not available in that much amount. So, there is lack of preparation, if you're banning 500 and 1000 notes then you have to increase 10, 20, 50, 100 rs notes in the flow much before implementation of your plan.

2. Another problem is with ATMs, if government making new notes of 2000&500, then size of those notes must be of the same size of old notes. But, size was different and ATMs also needed replacements, which took work of over 50000 engineers for it and much more time and money. So, people at the same time were angry at the government and also appreciated government as they took step to remove the black money and corruption.

Government was saying this step is a milestone in cleansing of our economy, destroying of black money. But, real truth is black money was not hidden in cash only, it was laundered in many assets like lands, jewellery, foreign firms and it always gets turned in white some way. So, as government was expecting, there was not any type impact on black money, Neither big names, neither big black money.

RBI also stated that, approximately all old notes are got converted in new notes. This decision was dangerous for life of business which mainly depends on cash mainly small businesses. There growth and revenues decreased very severely.

So, this was a step without any preparation and harmed the middleclass people to much rather than black money holders. But, they endured the pain and appreciated government for this decision. This step was good, but taken without much thinking and planning. So, we can hope our respected government will take good decisions for good future of our country.

Bavita kumari said:   6 years ago
Hello, this is Bavita kumari.

Yes, of course, demonetization is affecting common people more than the black holders. Behind the demonetization drive, the main aim was to minimize the corruption means minimize the no of black holders, but what is the reality we all can see. Before demonetization 14. 11 lakh core money was in the market and in which more than 13 lakh core money has been deposited. Then the question is: where is the black money? The answer is: all the black holders have some connection at the upper level and they deposited their money with the help of connectors and many people or black holders deposited their money through their servant and poor people. Hence they are no affected. They recovered their money back in form of new notes. The main people who are affected by this drive is:"common people". Even many people or old people died in queues. Many marriage functions was stopped, many patients died, means all the problem affected to common people. Hence demonetization is affecting the common people more than the black holders.

PARTH said:   7 years ago
Good morning all. Today I would like to speak about the one of the most important thing happening in India; Demonetization. In this speech, I would like to draw your attention to why it's been done? Who did it? What's the impact of it? I am trying my best to make this speech a neutral one. I am just a high school student, I am not affiliated with any political party. Let' start with what actually demonetization is.

Introduction to Demonetization in India and Its Status.

So, what the demonetization? As per "Investopedia", a demonetization is an act of removing the legal status of currency as "Legal Tender". Means old notes or even coins must be retired and replaced with new ones or completely new currency can be introduced like Rs. 2000 note which was not available earlier.

On 8th November, PM Modi's announcement was the breaking news across India. Rs. 500 and Rs. 1000 notes (currency) are made illegal from a stroke of midnight. One might think, why it's been done? Indian government's goal was to remove all counterfeit (fake) currency from the market which is used in tax evasion, corruption and even in funding terrorist activities. These two currency notes are the most used currency in the Indian market, it had 86% share in the market. This was a very big and risky decision and as some aptly said it is a "Masterstroke". Some even say it is a "Surgical Attack" on black money. In simple words, old Rs 500 and Rs. 1000 notes are worthless now, they are just a piece of paper.

The opposite of demonetization is remonetisation, which means restoring the demonetized currency as legal tender. And a lot of political parties from the opposition are fighting for it.

Impact of demonetization within India and foreign Relations.

Demonetization has a big impact on Indian market and citizens like you and me. People flocked the banks to changed their currency and stood in long lines in front of bank and ATMs for hours to draw their money. Surely, we have problems in but we also need to understand the importance of it. Just imagine if it was told a month ago, then all black money launderers could have managed their money in this or that form. That's why it has to be a sudden and surprise act.

India is not the only country which used demonetization to deal with corruption, inflation or tax evasion. In Europe, when they introduced the Euro as European Union currency old currency was demonetized. In 2015, Zimbabwe demonetized their currency to eradicate their hyperinflation.

Demonetization can also be used to promote the "Cashless Economy". As PM Modi aptly said, we might not be a completely cashless society soon but at least we can be "Less Cash Economy". Under cashless economy, people prefer to pay for goods and services in digital format than the cash. Tough we Indians love to handle the cash, such event was necessary to change the mindset of people who loves cash.

On another side, we can see a positive reaction from all over the world. Other countries who wants to invest in India thinks that Indian government trying to solve Indian red tape and corruption. It will draw more foreign investment in the country which will help Indian government to build a better India.

Sahira said:   6 years ago
Hi friends.

The intentions of our government behind demonetization was pure and true. But their planning, implementation, and consequences were not up to The mark. This was the reason of the failure of government on the mission of eradicating corruption.

Demonetization affected both common people as well as black money holders up to some extent. But common people was the one who affected more than black money holders by demonetization.

First of all, the rate of rural people is more than Urban people in India, and there is no or little internet facility in rural areas. Also, there was no awareness about a digital system which caused a lot of problems for poor people.

Common people had to wait in long queues from morning to evening and then also there was no guarantee that if there was money on their Palm at last.

Whereas black money holders used their servants and laborers to change their black money into white by standing them in long queues in place of themselves. It may affect common people's time, health and their work.

Thank you.

Kavya said:   6 years ago
Good afternoon everyone.

At the starting stage, it is true. In my opinion, it was a gd plan taken by our respectable pm Modi JI. Up to some extent, I will accept this. By demonetisation poor people suffered a lot. Central didn't intimate at-least once. Without information, at once they changed the money. By this black money holders, they didn't suffer at all. At that time people visited so many ATMs but there is no money at all. If the government is implementing any thing, first of all they have to intimate once to a people. At that time so many common people marriages were cancelled due to demonetisation. But the political people nd some other great people marriages hasn't been cancelled. For that people one right nd for common people another right. This is the worst position in India black money holders in another way they made their money into white. Common people stood in the line for days but the celebrities and politicians at least they didn't stand at once for a money. Mainly due to demonetization shopkeepers and small vendors, farmers they suffered a lot. In Tamil Nadu one politician he distributed his money for a people for each candidate he gave 3 to 4 lakhs due to black and in some other states, they even threw the money bags in the garbage and some people burnt the money also. Corruption is more in our country. Our country placed 1 st position in corruption. For small signature from the officials they corrupt the money first later they do the work that to they corrupt the money from poor people only.

After demonitising, In one week only again they make 2000 rupees as a fake note. See how the Indians are. They are using their intelligence in unwanted things. They are not using for wanted things.

K.SANDEEP REDDY said:   6 years ago
Hi, my name is Sandeep.

I am talking about common people point of view, all the below middle class and middle-class people stand in front of banks to exchange currency, I haven't seen any rich people standing in ques, waiting to exchange.

People are standing and waiting near banks just to see the future of India as corruption less country, we should support our govt as it is a very good initial step taken by the govt, even though it has many disadvantages.

Bhim said:   5 years ago
According to me, if we talk about the people who are rich, having black money they even not affected a lot because they come with another solution for this issue. If we talk about the people which are middle class or in other words common people they have limited money. They suffer a little bit because they stand in the queue for money, many other problems that they faced.

If we talk about one more type of people who are living in the villages. They suffer a lot from this demonetization. One of my friend did the research study in the villages about the impacts of demonetization he get to know the result that people living in the villages don't have their bank account and they have some notes of 500 and 1000. How they exchange their money they even don't know what had happened in the country?


Sayan said:   6 years ago
First, we should understand what is black money. Black money is a money which is illegally obtained or not declared for tax purpose.

We all know that Govt of India has taken a step called demonetization to retrieve the black money. But the question arises is it an effective and practical way to address black money?My answer is no.

Demonetization has been proved to be ineffective as 99% of banned notes have returned to RBI. And it was predictable.

First of all, only 5 to 6% of the total black money is in the form of hard cash. So to target that minimum amount of black money Govt of India banned all 500 and 1000 rs. Note. These notes are the back bone of Indian economy.

We saw over 100 of common people died in the long queue waiting for deposit 500 and 1000 rs notes to the bank. But we did not see any business man waiting in the queue. Many people lost their jobs due to demonetization. Govt of India also announced every citizen would have 15 lakhs in their bank account but I don't know if anyone got 15 lakhs in their account or not. They also said terrorism would be decreased but unfortunately every day in the newspaper we saw that many Indian soldiers are being killed by the terrorist attack. Before new 2000 rs. Note coming to the market fake new 2000 rs note is found from terrorists on the Kashmir border. So it is enough to prove that demonetization has been failed.

Now the question arises why Govt of India takes a drastic step like demonetization, is it only for black money or there is also another reason other than retrieving the black money.

We all know that total 63 business men are not returning their loans (total amount of 7016 crores rs where Vijay Mallya 's personal loan amount is 1201 crores rs. ) to the SBI bank. Now SBI bank has lost hope to get return their loans and has given loan waiver. But farmers don't get loan waiver and are forced to commit suicide. After demonetization SBI bank has also announced to deduct your money if the transaction exceeds a certain number. The interest rate has decreased from 4% to 3. 5% if you don't have at least 1 crore rs in your savings account. But those who have 1 crore in their account, at least they can not be common people. You also have to keep a minimum amount of money otherwise you have to pay fine. It means that common people can not use their own money how they want to. In this way, SBI bank has earned 235 crores rs as fine from common people this year.

I don't know whether there is a link between not paying loans of big business men to the bank and to make up the deficiency of that money and to save the bank from bankrupt collecting all the money (500 rs and 1000 rs note) in the name of demonetization and putting burdens (in the name of fines) on common people from the bank. Govt of India also said that they have a profit of rs 16000 crores but the interesting fact is they have to spend rs 21000 crores to make new currency. So does it make any sense?

If Govt of India really wants to curb black money then they should address the black market from where black money is coming. Otherwise, there is no real solution of corruption.

Singh said:   6 years ago
Their is no doubt that demonetization is one of biggest step taken by the government to bring out the black money. It is clearly seen that the demonetization has a great impact on the economy. If we see the market its size has increased a lot after this revolutionary steps.

But the government was not fully prepared for this step. They are unable to analyse the situation.

But it impacts on common people is very much more as compared to the black money holders. If we talk about the small employers they are unable to buy or sell the products, due to which they have faced losses. Maximum number of peoples who are in the long question are common people not the black money holders. The daily life of common people is fully affected by demonetization. They have to leave all of their important works just for the sake of changing/ getting new notes. A number of people also died in those long question of ATM. People does not have the money even to buy the necessity goods. Their is the shortage of cash in almost every bank. Most of the ATM machines are also not working.

Most of the Black money Holders converted their old currency into the new one with many unethical ways. They are the ones who never stands on those long ques, on the other hand the common peoples were their in those question and faced the problems.

Rinku Bhagat said:   6 years ago
Demonetization was good to stop things like reduce Terrorism, Black Money and to remove fake notes from the market.

But failure of demonetization is that its not well planed that's why the corrupt people find some black hole in the system and they convert there black money in white.

Result is till end 99 % of demonetized notes reatun in the bank.

Now comes to common people because of they have not such connection to the banking system they standing in queue or front of ATM's to exchange or deposit his earned money which is they earned by his hard working.

They lost there jobs.

They don't have money to arrange his own daughter marriage even they don't have money to buy his daily uses things, because company's had not paying him at a time.

Around 100's of people died during Demonetization, they all are COMMON PEOPLE not a single millionaire or billionaire.

So these all situation shows how Demonetization effect the common people life more than black holder.

Post your thoughts here:

Your comments will be displayed after verification.