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3:11 pm - Monday November 24, 5462

Demonetization

Generally anniversary of birth and death on quite different notes of feelings. The anniversary of demonetization on November 8 was observed on different notes by the Ruling Modi Government of Bhartiya Janata Party in one way for boosting economy and by Congress on the note of ruining economy observed as black day.

Apart from opposite political view points on demonetization it has to be judged from the point of view of common people. There is no doubt that they suffered it a lot and very crushing impact on Trade, Commerce and Industry.

Deliberately it was launched in that way for the reasons to best known to Prime Minister Mr.Narendra Modi, his Finance Minister Mr.Arun Jaitley and the Reserve Bank Governor Mr.Urjit Patel.

The high denomination currency notes of 500 and 1000 demonetized and were to be replaced. But strangely the new note of Rs.2000 was introduced. As there were no 500-1000 notes in circulation the Rs.2000 notes became very odd because no change for it in monetary transactions.

Within days news in print and TV channels poured in that there were no new notes in bank to change and people were at loss to understand what to do in that situation. On the other side many banks were functioning in night secretly to change the money in Rs.2000 currency notes in crores of rupees.

The Rs.2000 note became black money. After some time the Central Government and the Reserve Bank itself apprehended many high Bank Executives and Postal Authorities for helping black money holders in a clandestine way on getting commission and bribe.

There was disastrous chain reactions in market. The consumers had no cash in hand and retail trading came to virtual halt, it in turn hit the wholesale trade and it hit at manufacturing sector of industry. With glut in stock and no trading the industries had no other option but to slow down production and lay off-pay off the workers.

This resulted in unemployment of some 15 lakh industrial workers. The industry also stopped purchasing raw material and it has smashed that side of production also. Virtually it was rapid chain disaster of people and public economy.

One fails to understand why the Governments has not printed the currency of Rs.500 and 1000. The Rs.2000 note was outright financial help to very high rich class. Who had staked in notes as black money.

The demonetization proved to be economic assault as the people of India. Just to give unconvincing solace to public and pet themselves the Government is putting up argument that had lowered the terrorism and naxal activities.

Both it still going as usual and Government actions and counter actions. The people and market are still feeling the pinch of lack of money in circulation. The Government must bring in the circulations new notes of Rs.500 and 1000.

Posted in: Editorial

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