When the Prime Minister announced about the demonetization on
8th November 2016, it sent a wave of surprise to all in the country
and a shocking blow to those who have amassed millions of unaccounted money.
While the shock and surprise are yet to dip, the effects of demonetization are
already beginning to show. While the hoarders of Black money are shedding
crocodile tears about the sufferings of the common man standing hours together
at the bank to exchange his old currencies, their allies in the guise of
journalists and financial experts are finding loopholes in the arrangements.
Many of them argue that this should have been better planned, so that the
misery of the common man could have been avoided. This was not only a very bold
and selfless initiative done by the government but also a very secretive one,
to which only very few people are privy. And Modi baiters very well know that
any level of planning and gearing up would have alerted the very men who are
the real targets of this action. Don’t think that they are ignorant, they are
only being complicit. Hoarders would have immediately converted their ill
gotten money into any other form. But it is also not correct to say that the
government caught the common man and small time traders unaware. If you look at
the various steps taken by the present government you can very well understand
that the government is taking a steady but sure step towards bringing the
parallel economy to task. First it was the Jan Dhan Yojana scheme which could
get a total of 25.51 crore new accounts as on 9.11.16, which basically
comprises of farmers and people in rural India. This paved way for a direct
link between the common man and the government getting rid of the touts and
middlemen who are the reason for the pilferage in all of the government welfare
schemes. As a result of this common man could get the benefits directly from
the government subsidies. This gave a blow to the corrupt politicians who used
to siphon the grants given to the public. This also brought a major chunk of
our population into the banking practices.
Then the government announced the voluntary income disclosure
scheme, giving a lengthy rope to the wrongdoers to correct themselves. A total
of 65,250 crores were disclosed through this scheme. The demonetization step
followed these previous actions, which is quite logical. Already around 5.5
lakh crores have been deposited in the bank within 2 weeks of this announcement
and various reports are coming about sacks of cut notes being dumped into
sewage canals. So if anybody is surprised by the government’s stern action it
is only because of the corrupt and callous governance to which they are used
to, for the past several decades.
Government is pushing the country towards more banking
transactions and more transparent accounting. This may also be a step towards a
cashless economy, as many are hinting about. The
gradual transition towards digitization and a cashless economy will definitely
help curb corruption in the long run. The increased transparency and record of
transactions will make it considerably difficult to hold black money and carry
out under-the-table deals. The added convenience of using digital payment
solutions and virtual wallets can’t be ignored either.
While announcing this demonetization program, Government
stressed that it is the only avenue available to curb the hawala market and the
funding which comes to the terror groups. Fake Indian
Currency Notes (FICN) network will be dismantled by the demonetization
measures. Taking out 500 and 1000 rupee notes out of circulation will have a
lasting impact on the syndicates producing FICN's, thus affecting the funding
of terror networks in Jammu and Kashmir, North-eastern states and Naxalite hit
states. But we seldom see any news channel, discussing about this intent of the
government. They probably would have thought that even the very mentioning of
the word terror, would hurt the sentiments of a “section of people”. And as if
to assuage the wounded hearts of those people they are inventing stories of
suffering to common man. It is not to be forgotten that many of these news
channels are actually floating on very same corrupt money, which the government
want to get rid of.
With nearly five state elections in
2017, demonetization has stunned political parties. Especially, in large states
like Punjab and Uttar Pradesh, cash donations are a huge part of "election
management”. In one stroke, big parties will find themselves hamstrung as cash
hoards are often undeclared money. Parties will have to completely rejig
campaign strategies in light of expected cash crunch
We should bow before the Prime Minister for taking such a
bold decision, which he very well know, is going to get brick bats from his
detractors and also could lose him favors from his own admirers. But he has
taken a decision which no one has dared to before. This action has shaken many
of our people. This action is intended to purify the national veins from the
clogged pollutants it has acquired over several decades, an action to
revitalize the values. This is a direct call to our conscience. A positive take
away from this action is that many among the youth are welcoming this move.
That gives a glimmer of hope about the future of our nation.
V.V.Balasubramanian
YB-ET