Tuesday, November 8, 2016

Currency Crisis

The Prime Minister's announcement that currency notes of Rs 500 and Rs 1000 will be worthless paper bits from tomorrow comes too soon.

Black money is a serious problem in the country and the PM's decision is quite revolutionary.  Think of the practical problems, however. There are thousands of people travelling long distances by the Indian railways right now, for example.  Their destination may be still two days away.  For example people travelling from Kanyakumari to Dimapur.  They order their food and are told by the caterer that he won't accept Rs 500 notes.  Should the passengers starve a couple of days?

There are thousands of tourists on the move right now in the country.  Tough situation for them.  Hospitals, hotels, and a lot of other places may be forced to accept the banned currency which the PM himself referred to as "worthless paper."

We are asked to go and change our currency reserve at banks and post offices.  But how many hundred rupee notes will be available in the banks and post offices?  How many people are going to queue up before these institutions for how long?

I think the PM could have given a couple of days for implementing the decision.  Once the decision is announced, it won't be possible for any hoarder to whiten his/her black money which will run into huge amounts.  Ordinary people wouldn't have been put under such tremendous pressure.

The decision is good, no doubt.  But too soon.

19 comments:

  1. Sometimes, you need to take hard decisions, and like they say in Hindi, gehu ke saath ghun to pista hain, we need to deal with it. But my main concern is about 2000 rupee note, will it work in a longer run, or it will end up like 1000 rupee note.

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    1. 2000 rupee notes come with nano chips in them so that their accumulation will be monitored. 1000 rupee notes would be economically unviable with the chips.

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    2. It's a hoax, Sir.

      Read here...

      http://gadgets.ndtv.com/social-networking/news/2000-note-nano-gps-chip-rumours-1623133

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    3. One of the disasters of social media :(

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  2. It definitely is a problem. They could have given two three days to smoothen the transition. With only 500 rs note in my bag and ATM and banks closed, I am forced to delay my routine check up.its a great move which comes along with loads of inconvenience

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    1. Most people would welcome the step had a little more time been given. This came as a rude shock. . I'm also stuck with 500 rupee notes.

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  3. I agree a 24 hour notice should have been there

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  4. I doubt this alone could stem the flow of black money.So nothing revolutionary in nature to be harped about.

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    1. This is a move in the right direction. Of course, Modi's friends must have been warned. But the other hoarders will pay for their greed.

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  5. I agree with your views. Giving a couple of days' time would have saved the commoners from a great trouble whereas the real hoarders and black-money makers would not have got any relief. Well, the PM and his friends hardly care for the poor who live their lives on day-to-day basis and the ordinary citizens who despite abiding by the law of the land, are always the biggest sufferers in the hands of the law and more so in the hands of the lawmakers. The admirers of the Indian premier are not giving a damn for those who are living hand-to-mouth.

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    1. Haste is the only problem. With some conditions put on transactions such haste could have been avoided. Now there's a lot of panic and chaos.

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  6. Even after normal transaction starts, it would take few days to restore things to their earlier status. For first few days, we can expect crowds and queues in banks and ATMs.

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    1. Yes it's going to be tough for a few days. Hunger and thirst for the sake of the nation.

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  7. that decision is good but has troubled more the common people

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  8. I totally agree with the inconvenience people are facing but I also believe that if it would have done with a prior notice people would have got time to park their money.

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    1. The powerful people who actually have black money will always find ways of saving their wealth. For example, cooperative banks are being used in Kerala, according to some reports, to whiten the black money of some powerful people. I'm sure Ambani, Adani and such friends of the PM were already aware of this decision well in time to take necessary actions. A few people will definitely be affected. But the common man will end up with more hells as usual. That's India.

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  9. नोटबंदी के बाद डिजिटल पेमेंट पर जोर, जानें क्या है डिजिटल पेमेंट
    Readmore Todaynews18.com https://goo.gl/BgzxC9

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