Almost 96%- 97% of the cash in denomination of ₹ 500/ 1000 currency notes have been deposited back to the banks. A fraction of the remaining 3% will come back gradually till March 31st which might have been kept by NRIs. This makes the plan of demonetisation and the frenzy or black money, a hoax or precisely a a socio-economic tragedy that took the lives of more than 100 people, slumped down the business in the informal sector that contributes to 80% of India's GDP, daily wages workers, rikshaw pullers, auto-rikshaw drivers, road side vendors, greengrocers, farmers, small shopkeepers and many were hurt for a long time. The GDP has been estimated to go down by 0.3-0.5%.
A new business of money laundering has surfaced in the country. The priests of the temples are involved in such business. The moral hazard of bankers are on peak. Every day people with thick bundles of new currency notes are caught and 2 out of every 3 of them are some how related to BJP.
The foreign tourists were not given any special immunity against demonetisation (Indian culture should be hailed for everything except for "Atithi Devo Bhava", isn't it?)
Those who say that it is going to be very effective in long run are least aware of the fact that there is no such positive long run effect of demonetisation. Thanks to the advisory and planning committee of demonetisation, whose chief, an IAS officer by profession is PhD in Yoga.
The counterfeit currency business will be even more stronger in long run because the new notes are exceptionally dull in the security features, apart from this there is no consistency in the patterns of the new notes. Today, I read somewhere that the image of Gandhi was missing on the new notes of ₹ 2000. Already many instances of counterfeit currency notes are in highlights.
The transaction of black money will be facilitated with much more ease in future with the help of bigger notes. Trust of people in the banking system has got uprooted. NIFTY and sensex have slumped down. People will no longer store their money in banks or in the form of INR, they will find it safe to store the money in the form of USD, Euro or GBP, real state, bullion forms and so on.
This was a one time stunt to flush out black money but remorse, not more than the value of 2-3% have come to the pocket of government. There is no long term benefit involved in this process. I am not covering the details of the cost involved in this process of demonetisation which includes advertising, information, collecting back the old notes, printing new notes, dispatching them all across India, programming and fixing the ATM machines for new currency notes etc.
The only long term effect that it will have is the repercussions of cash and liquidity crunch. Those who start buying small items from big marts using plastic money will not go to vendors due to the cash crunch initially for a few months and then will continue this habit even after the required amount of cash is restored. This is human nature, once you learn something (in this case say buying vegetables from marts) after that you show resistance in unlearning the same. you will keep on going to the mart and the vendors will be jobless.
The stories of terrorism and insurgencies coming to an end were nothing but a Joke and lie for the suffocating public to breath the gas of nationalism. There might have been a momentary break to these things but it does not count because a break of 1 month in the history of bleeding India does not matter. It is not permanent. It will return back to its original state in a couple of weeks.
So, this is called the state of complete chaos. However, the most significant thing it has done is to make Modi less popular among the groups of his die hard supporters and fans.
A new business of money laundering has surfaced in the country. The priests of the temples are involved in such business. The moral hazard of bankers are on peak. Every day people with thick bundles of new currency notes are caught and 2 out of every 3 of them are some how related to BJP.
The foreign tourists were not given any special immunity against demonetisation (Indian culture should be hailed for everything except for "Atithi Devo Bhava", isn't it?)
Those who say that it is going to be very effective in long run are least aware of the fact that there is no such positive long run effect of demonetisation. Thanks to the advisory and planning committee of demonetisation, whose chief, an IAS officer by profession is PhD in Yoga.
The counterfeit currency business will be even more stronger in long run because the new notes are exceptionally dull in the security features, apart from this there is no consistency in the patterns of the new notes. Today, I read somewhere that the image of Gandhi was missing on the new notes of ₹ 2000. Already many instances of counterfeit currency notes are in highlights.
The transaction of black money will be facilitated with much more ease in future with the help of bigger notes. Trust of people in the banking system has got uprooted. NIFTY and sensex have slumped down. People will no longer store their money in banks or in the form of INR, they will find it safe to store the money in the form of USD, Euro or GBP, real state, bullion forms and so on.
This was a one time stunt to flush out black money but remorse, not more than the value of 2-3% have come to the pocket of government. There is no long term benefit involved in this process. I am not covering the details of the cost involved in this process of demonetisation which includes advertising, information, collecting back the old notes, printing new notes, dispatching them all across India, programming and fixing the ATM machines for new currency notes etc.
The only long term effect that it will have is the repercussions of cash and liquidity crunch. Those who start buying small items from big marts using plastic money will not go to vendors due to the cash crunch initially for a few months and then will continue this habit even after the required amount of cash is restored. This is human nature, once you learn something (in this case say buying vegetables from marts) after that you show resistance in unlearning the same. you will keep on going to the mart and the vendors will be jobless.
The stories of terrorism and insurgencies coming to an end were nothing but a Joke and lie for the suffocating public to breath the gas of nationalism. There might have been a momentary break to these things but it does not count because a break of 1 month in the history of bleeding India does not matter. It is not permanent. It will return back to its original state in a couple of weeks.
So, this is called the state of complete chaos. However, the most significant thing it has done is to make Modi less popular among the groups of his die hard supporters and fans.
