A bold decision by Prime Minister Modi!
To root out blackmoney
The PM has taken a very bold decision risking his own popularity!
A bold step taken by Prime Minister Modi on November 8 to check the menace of black money, unaccounted and kept in secret places in the residences of influential people in society. It was kept secret and the public were given just four hours’ time to decide. It was a blow to the hoarders since high valued denomination of Rs.500 and Rs.1000 were demonetized and the public were given time to deposit their currencies in bank in a legal manner. It is natural that those who kept their money under cots and beds had a sleepless night on that day. It is natural outcome that some people dumped those currencies in road side ditches and some had the audacity to throw them in river Ganges which is considered very sacred as per Hindu tradition.
In a democracy, this is a very bold decision; no Prime Minister would risk taking in spite of the troubles caused to the common man on the street. The availability of lower denomination could not be ensured instantly. Of course, the people who are at the helm of affairs in leading banks spent sleepless hours, otherwise, they would have to face the ire of common man. It is a fact that the ATM machines installed by all over India by various banks could not handle such loads. Most of the installed machines were old and even for normal use, they develop snags. In the midst, government has announced the introduction of new Rs.2000/- notes. Now the finance minister is making announcements that it will take a minimum twenty one days to caliber the machines to accommodate the new notes which are slightly different from the existing dimensions of 1000 rupee note. The most affected are the daily wages labor who keeps his savings in higher denomination notes. Of course, the government has offered time until December last to change the existing notes in banks. All of a sudden, the petty shops, petrol bunks, vegetable markets and milk vendors refused to accept high value notes. Hence those who have legal notes could not procure the essentials!
The idea behind the move
The public reaction and outcry!
Commuters could not pay bus fair or train fare. Auto drivers refused to accept high value notes. Even the hospitals and pharmacies refused high value notes. Hence the trauma underwent by the public could be judged. The government was aware of such problems, yet they need to supply the new currencies in another one month time. The Prime Minister has implored that the public may kindly bear with the new regulations since it is aimed at removing corruption and black marketing. Of course the aim is noble but the sudden jolt has imbalanced normal public life and trading activities. Production was less and trading houses have declared deteriorating sales. Even e commerce sites recorded less cash flow. These are all natural reactions since nobody keeps lesser denomination currencies in the home nowadays.
Hence, there was an urgent need for Rs.100, Rs.50 and Rs.20 and Rs.10. But how can we pay money with lesser value for purchases exceeding Rs.1000 or so? This policy has become a whip for the opposition parties to blame the government for demonetization. With important elections are on the board, probably, PM Modi might have thought that this is the best time to eradicate black money which will be used by the parties standing in election to bribe the public. Of course, the move will stem the circulation of higher value currencies. Also, across the border Pakistan is waging a proxy war by introducing fake currencies through covert ways to disrupt Indian economy! Also, the terrorists hiding in India are using the money to plan and execute suicide bombing as being done elsewhere! The recent border violations by Pakistan and frequent shootings across the borders in Indian villagers irked the Prime Minister and hence he wanted to deal sternly with the terrorists.
Open source for corruption
The reasons behind the bold decision!
Of course, any new scheme will face opposition in several pockets. But the foreign media is praising the prudent move by PM Modi. When cancer is spreading, the surgeon is not hesitant to cut and remove the cancerous cells. During the process, it is inevitable that some adjoining healthy cells could be removed. But every policy has certain pros and cons. In this case, the pros seems more than the cons. No doubt, the Prime Minister has taken a very bold step after the surgical attack on frontier enemy camps! Also, he has said that such moves will continue for another month or two so that black money economy could be eradicated to a major extent. In this connection we have to agree that the entire party is following the Prime Minister. Many become MPs to further their business interests. Because the MPs are from ruling front does not guarantee that everybody there is perfect. No doubt the PM is honest, upright and straight forward which cannot be said of all his colleagues there. No doubt, the previous government was riddles with plenty of scams especially during their second stint. That is the reason why Modi could sail to win pan India. But some of the subsequent elections have proved otherwise. Especially Delhi and Bihar proved otherwise! Hence all out efforts are made by BJP to prove their mettle once again in Uttar Pradesh which is the main plank to gather the needed strength in the Rajya Sabha. The opposition parties are in disarray in UP. It is not known how Mayawati of BSP will fair in this election. The SP party headed by Mulayam Singh is facing family feud between the father and son and the CM vs his uncles! Hence it is difficult for them to consolidate their power. Congress on the other hand is on the verge of collapse due to vacillation over leadership issue. Though the Vice President Rahul Gandhi was willing to become President, many old timers are not in favor of his elevation. They prefer matured Sonia Gandhi to her son.
In all possibilities and probabilities, the BJP may improve their score but without the aid of other parties, it cannot rule UP. Hence the Prime Minister has timed his demonetization just before elections in important states! Whether it will impact him positively or negatively, time alone will tell.