WHs on Demonetisation : Why was it taken? Was it Required ? How impact full it is ?
As the clock ticked 8pm on November 8, Prime Minister Narendra Modi ji addressed India via television and radio. It was an epic night for the whole of India. Embarking on a straight fight with black money. Thousands of post has been written on it. While Tinypost stood mute on it, waiting for a right oppurtunity. Now here are we. Giving you a rationale insight about the decision and its impact on black money hoarders and India’s economy too. WHs on Demonetisation : Why was it taken? Was it required? How impact full it is? Who are its Beneficiaries ?
In the night of November 8 Shri Narendra Modi ji took one of the boldest decisions. He declared that from the midnight of November 8 the Rs 500 and Rs 1000 currency notes would be no more a legitimate tender. While , The decision was then titled as #SurgicalStrikeAgainstBlackMoney by Indian netizens and media . Tinypost pronounced it as a #masterstroke.
If you want to now more on the speech of November 8 of Shri Narendrta Modi ji just click on the below given link
Many Questions have been raised: WHs on Demonetisation : Why was it taken? Was it required? How impact full it is? Who are its Beneficiaries ?
Yes, we’ll start with our question and answer session. Tinypost hopes to cover most of the questions that the populace is inquest about.
Q,1) What is this demonetisation decision ?
Ans) The Government of India with consent of the Reserve Bank of India decided to ban all the current circulating Rs 500 and Rs 1000 in India. This would come into effect from midnight of November 8. These currencies would be replaced by new Rs 500 and Rs 2000 currency notes. The government announced some exceptions where these old currency notes would still be in use.
To know about it more Read : What does this demonetisation means?
The government has announced December 31st as the last date to exchange and deposit your old Rs 500 and Rs 1000 currency notes into your bank accounts.
This Demonetisation means that : WHs on Demonetisation : Why was it taken? Was it required? How impact full it is? Who are its Beneficiaries ? : these old currency notes are no longer a legal tender to buy your commodities. So you better start exchanging or depositing your old Rs 500 and Rs 1000 currency notes into your bank accounts or post office.
Q.2) Why was this decision taken?
Ans) According to RBI , in value terms, Rs 500 and Rs 1,000 banknotes together accounted for 86.4 per cent of the total value of banknotes in circulation. What lead to this decision was the sudden rapid increase in the rate at which these currency notes grew in circulation in the last five years from 2011 to 2016. The economists say Rs 500 notes grew by 76% and the Rs 1,000 notes by 109% over the 2011 numbers.
This increase was attributed to unaccounted hoardings of these currency notes by black money holders. Also because of the circulation of fake currencies.
Let us now discuss the objective of this demonetisation. : WHs on Demonetisation : Why was it taken? Was it required? How impact full it is? Who are its Beneficiaries ?.
The reasons that lead to this decision are as follows:
(a). Black Money : It is known fact that the Black money in Cash (unaccounted money) is largely (almost whole) made of Rs 500 and Rs 1000. This money is used to carry out many illegal activities like in real estate deals, politicians using it during elections and also for criminal activities like contract killing.
(b). Hawala Network: Hawala transactions happens only in the Rs 500 and Rs 1000 currency notes. As there is a large amount of money to be transferred these currency notes comes as a haven. Hawala Network is used for illegal export and import activities like drug peddling and also criminal activities.
(c) Fake Currencies: Mostly comes into our system because of Hawala Network. These currencies are mostly used for terror activities.
So to put a curb or rather an abrupt end on such activities, the Government decided to demonetise these currencies.
Q). Was it required ?
Ans) Tinypost says that the Government of India under the leadership of Shri narendra Modi ji analysed the root cause of the issue. The root cause was the cash hoarding and use of these old Rs 500 and Rs 1000 currency notes. Even the 130 odd day unrest and shutdown in kashmir valley was attributed to the funding to separatists through Hawala Networks.
To fight against the black money stored and circulating in India, which was depriving it of its economic growth, the Government has started with a very bold and brave decision. As the issue of black money in cash and illegal funding of various terror outfits like Indian Mujaheedin and NGO was rapidly rising. Now demonetisation has left such people in lurch.
Tinypost believes this as the best and the bravest decision taken which has taken a toll on black money hoarders and hawala transactions.
Q) How impact full has it been?
Ans) As we have said. These demonetisation has let many politicians, bureaucrats, businessman, real estate agents and jewellers in the lurch. These are the people who have hundreds of crores stored in their homes and other safe havens.
Also some places and schools in Kashmir valley has started to open up. This is a win for the Government which was struggling to reach to a conclusion with the separatists.
Then in the last 11 days around 4.5 lakh crores of money has been deposited into banks. This means that this huge sum of money which was hidden and stored as black is now in the purview of system.
Also in many raids conducted people have been caught with trying to use their huge stacks of unaccounted money.
But we can not ignore the cons of these scheme. WHs on Demenetisation. First, people have been inconvenienced. Large queues outside banks have been seen. People are standing for hours outside banks to get their money deposited or exchanged. 45 number of deaths because of demonetisation have been reported since then.
Second, some sections of society are facing hardships and loss in business. These are farmers and small traders. As people don’t have the the necessary currency to pay and some have Rs 2000 notes which are not being accepted by some.
The Government of India is looking into all measures to decrease the inconvenienced faced by people. They have been making changes in this scheme regularly so the Imandaar faces no problem.
But instead of all these distress people of India has welcomed the decision and are in full support with the Government’s fight against black money.
Q) Who are it beneficiaries?
Ans) Certainly the common man of India. Estimations by economists are that around 6 – 9 lakh crore of rupees is going to be collected by banks during this drive. So a high amount of tax is going to enter the coffers of Indian Government.
This excess tax would then be used for the betterment and various people friendly schemes by the government of India. WHs on Demonetisation : Why was it taken? Was it required? How impact full it is? Who are its Beneficiaries ?
Tinypost also wants to answer a particular question :
Q) Billion crores of the black money is in foreign banks, Why not target that ?
Ans) Even the unaccounted money in circulation in India is black in nature. First let us start cleaning the black money stored in our country itself. Then let us extend it to those.
Government of India has already procured the names of those who have bank accounts in foreign banks. French government has responded with 700 names of Indian having accounts. Let us give them the time to analyse those accounts and identify the culprits. Then they would surely act against them.
But there are some who are politicising this issue and raising an unwarranted situation of crisis. Tinypost proclaims that yet even after facing inconvenience the country is stable. Just few days of distress and hardship. But the future and economy of India is shining high. Hope we have covered all yours WHs on Demonetisation : Why was it taken? Was it required? How impact full it is? Who are its Beneficiaries ? My request to all my peers is let us be with Modi ji in his fight against black money.
#byebyeBlackMoney #masterstroke #SurgicalStrikeonBlackMoney .. 🙂