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

Good Morning everybody.

I got the opportunity to discuss my views about a very interesting topic "How demonetization is affecting common people more than black money holders?".

It also has been done in 1946 and after that, I was done in 1978 by Morarji Desai to banned 10000 and 5000 Indian currency notes and now one of the biggest step taken by PM Narendra Modiji to banned 1000 and 500 INR. So it's a normal process and there is nothing to become shocked. Demonetisation is not new in India. On 8 th November 2016 a revolutionary step has been raised in order to make corruption uprooted from the country by our honourable Prime Minister Narendra Modi. Demonetisation releases a adverse affect on the common people more than the black money holders. We all know that this decision is quite right but it is not taken with the proper plannings. Common people faced a lot of difficulties due to this. We have seen various long queues in front of the banks. Businessman also suffers from this They also faced crisis.

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%.

Upper class consists of most of the people with black money which includes politicians, businessmen. As our Ex-RBI Governor said 'People Will Find Ways To Divide Their Hoard', that is, people will find new ways to convert their black money into white.

Many people died during this process and I feel instead of demonetization, the government of India should've ensured strict taxation laws which would've saved the people of India from such chaos.

Behind the demonetization drive, the main aim was to minimize the corruption means minimize the no of black holders,

Demonetization has definitely affected middle-class people and poor families but in the short term only. While black money holder are affected in long term. In day to day activities and where they have to attend a marriage function and to organize special events or to build a home where one has to pay daily wages to a labour in cash. In all these areas people are much more affected in day to day life than black money holders. Demonetization basically occurred so that govt can have a good amount of black money and much black money holders are caught also due to it. And a large money has come to government many black money holders have do not put money in the bank and they ultimately have to waste his money.

And much black money holders went a sleepless whole night with the fear of getting caught in the eye of government Many 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 not affected. They recovered their money back in form of new notes.

After the 4 months when the cash has flown in the market common people, got relieved but black money holder did not as they did not exchange money. And whatever the efforts they put into earning that entire money their efforts and all struggles got wasted. So black money hplders got a great lesson to not to cheat the country and when govt has got money from they can utilize for common people.

The rich have that "extra money" saved as black money, there is no dearth of money and resources for them to cater their daily needs, whereas poor and ordinary are usually the daily wage earners with a substantial amount of their savings stored in the denominations of 500 and 1000 Rupee notes. A major chunk of the employees comprises of daily, weekly and fortnightly wage earners, earning less than Rs. 1,350 per week. They usually earn and spend on a daily basis leaving very fewer savings for emergency situations. Their earnings have certainly impacted as India has blocked 86% of the currency notes in circulation, resulting in shortage. With the majority of the workforce belonging to the informal sector, currency ban has hit them badly. For example, the fruit sellers, vegetable vendors, flower shops, fishermen communities etc. Which belong to informal sector don't rely on bank transactions, rather deal in cash. With this ban, there has been a significant dip in the consumption thereby resulting in massive losses for such people.

Secondly, they are standing in long queues to exchange currency as well as withdraw money, leading to loss of daily earnings. Many cases of people dying or starvation or medical attention due to lack of cash has been reported. Farmers have felt the burnt of demonetization since they couldn't purchase seeds, fertilisers or sold the freshly harvested crops in the market. Indians would never have paid their domestic help and other people through cheques, however now they would.

Demonetization affected a lot to the common people. The step was taken for the black money holders and the maximum black money holder belongs from political background well-named businessmen or from any other big organisations. But how many of them was standing in the queue to exchange old currencies? They had turned their black money into white money over the night without facing any problems. And most important thing 90% black money are not in the cash form. The black money is in the form of any assets or in the Swiss account. Remaining 10% black money has turned into white money without facing any problem because they have the power to go through the unethical way.

But it was not possible to common people to exchange their currencies over the night. They had to stand in the long queue. Sometimes they had to return home after standing for so long time widout exchanging notes due to insufficient fund. The process was eligible for senior citizens also and a 60/70 years old man had to wait in the queue for hours of time. In ATM, there wasn't sufficient amount of cash.

Small vendors were unable to pay or collect money due to currency exchange policy, marriage ceremonies of common people was stopped due to this problems. But the marriage of businessmen's daughter (Nitin Gadkari's Daughter) hasn't cancelled.

Thus demonetization affected a lot to the common people.

Hello friends.

Today's our discussion topic is how demonetization affects common people more than black money holders.

According to my opinion, demonetization, effect both of them common people as well as black money holders but more effect of demonetization is on the common people. Everyone standing in the queue and only for to change their banned 500 and 1000 notes. But if we discuss black money holder they are is in their house and try to exchange their money. And 70% black money holders change their money and turned white. During this exchange process, we see that and listen to commission agents. This is the disrespect of our currency. And some states literally sell old 500 notes worth rupees 400 and 1000 notes in 800 rupees. It means people helpless to fulfill their needs and due to long queue in banks, they do not have sufficient time to exchange their money. And the tourist who come to visit India they all are stuck in this period and they are unable to enjoy historical places. Another thing is daily wages worker does not get their salary and they are also facing lots of difficulties. But black money holders stay in their homes because they already have enough money and reputation to purchase any product to fulfill their needs from the market. My conclusion is an effect of demonetization is more on common people as compared to the black money holder.

Hello Everyone,

Demonetization took everyone by storm and created a big bubble in the country which gave us a hope for a better future without black money. Yes, the idea behind demonetization was good but the execution was very bad. The Indian government could have done a lot better then this.

The recent numbers given by the RBI shows that 99% of the currency was returned back to the government while the actual expected numbers were quite low around 85%. Around 100 lives were lost in the two months after demonetization was declared because of long queues of people waiting for hours to withdraw a few 100 bucks. I myself had to literally starve a few nights just because my hostel canteen was not accepting card or paytm. Most of the black money by a few hundred millionaires and instead of auditing them, rest of the people had to suffer.

The Indian government had months for planning and still was lost millions of rupees in just printing the new currency with a higher denomination. I still don't understand why the government introduced 2000rs notes instead of a smaller denomination. People are gonna are argue that demonetization happened in the 1970s and our country got through with it, but we are forgetting one big important fact that the population of country grew almost double in last 40 years courtesy of are grandfathers who had nothing better to do!

I would like to add few points here. Though our honorable PM announced that the motive behind demonetization was to tackle corruption and black money. Actually, after Vijay Mallya stole 9000 crores of rupees most of the Indian banks went bankrupt. So by demonetization, the main motive was to regain the financial stability of the banks. Regarding common people, I would like to say that around 85% of population thrives on cash. Only 4% owns a credit/debit card and around 3% have a net banking account. So small scale industries, book publication firms, wholesalers, and mainly farmers are struggling a lot in case of any emergency. Regarding black Money the process would have been more effective if some provision would have been made to procure the Swiss bank accounts. Rest amount of black money which is in India only 6% are in the form of cash. So the amount govt spent in making new currency notes is far higher than that 6% black money which would return back to the government So overall Loss in revenue is obvious. And from the prospect of curbing of fake currency, I would like to add a point that to make a 100 rupee note only 3 rupees is required and to make a fake 100 note even less. So you can see to make a fake of 3million rupees only 30000 is required. Definitely, only a small amount of loss will be procured by the fake currency makers.

Demonetisation is a bold strategic step taken by the PM to curb corruption in India. This step has not succeeded completely in its aim but yes some amount of corruption has been reduced. This step was supported by all the Indians. But it effected not only the corrupted people but also the common.

In India digital payments is not well practised. It is known by the city people but a very few practise this. In rural areas many of them are still not aware of this. Thats why people faced a lot of problems due to demonetisation. They used to stand for long hours in the queue in banks for exchanging old notes and withdrawing money. Many ATMs used to show no cash boards. Even if money is available, a limit was kept on withdrawing. All this stress frustuated the common. It has been very difficult for the people working on daily job basis to find a job, because no one was ready to give jobs due to less cash. Farmers suffered as they have no cash to buy seeds and fertilisers for their crops. Middle class and poor people had postponed their functions due to less cash. On the other hand the rich and corrupted were less effected as they have money and they can achieve what they want.

These all problems were identified by the govt and it had increased the limit of withdrawing, and announced that they can use old notes in govt sector utilities.

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.

Hai friends,

Demonetisation a major step taken by Indian government, definitely a step for long term benefits of people of India.

But what about common man who is major contributor of Indian population and economy.

I strongly feel that, with such a drastic decision naturally common man was (is).

Affected more. Many people without bank accounts, people with account also not comfortable with ATM, in such a situation if the currency changes they don't even have an idea what can be done. Because it has become problem of 80 percent of people every one is busy solving their own. No one to provide proper guidance and common man suffered like anything.

Many couldn't go to doctor and couldn't purchase their regular needs. Of course, the situation was handled by them nicely, as they were patient at many places. Now they got used to handling the situation and ready for forthcoming benefits with positive attitude.

But before implementing such drastic decision, government might have planned for certain steps like making online payments compulsory at places like pensions of senior citizens and having lower denomination in ample. This might have been a better step with such things.

Although common man affected more, definitely He is the one who is going to reap the benefits also.

Thank you.