Demonetisation achieving many feats and leaving few blanks

Source: The Hitavada      Date: 31 Dec 2016 10:31:13

By Raja Das,


Dec 30,

Demonetisation has become a familiar word after November 8, when Prime Minister Narendra Modi addressed the nation over national television announcing his decision to demonetise Rs.1000 and Rs. 500 currency notes. The purpose of the demonetization decision of the government was multi-pronged. Whether the decision has helped to achieve the goal as visualized by the government is now being debated across the country with people airing their opinions mostly in favour and those deferring have their own arguments and mostly their ire is directed towards the failure of the RBI to provide sufficient number of currency notes for circulation.

Even as the debate continues, there are sections in the society who have raised questions over the inconvenience common man is facing due to this decision but interestingly the common man has not put any questions to the government. They are rather mystified as they do not understand the complexities of economics other than that what they earn is just enough to support their family and if they lose their earnings then they will not sit indolent. The man on the street in India has tremendous patience and they can wait not just 50 days but for innumerable days if the government shows signs of fulfilling the promise it made, stated a senior citizen adding that all these years’ people have waited.

Demonetization has even fractured the opposition and they failed in their part to counter the moves made by Prime Minister Modi. Even the opposition led bandh in the state failed to evoke proper response and the Congress leaders found their own reasons for the failure of the bandh call given by them including governments’ high handedness. More than making a responsible statement the Congress is trying to politicise the issue which people at large is not interested in. More than politicization of the issue the people wants the opposition to come up with the pros and cons of the decision on the economy and its effect on the lives of common man.

Motive behind demonetization was to end the flow of counterfeit currency and inflict severe blow on terror activities like Naxalism, terrorism and women as well as child trafficking. Another motive was to dug out unaccounted cash. India being a cash based economy, scrapping 86 percent of cash from the system took heavy toll on people. Despite putting on several checks and balances, cash was not available during the initial days.

However the beleaguered Prime Minister got the support of common man and the move was a huge success which even the Prime Minster acknowledged. The data available with the government agencies however proves that the move pushed towards transparency through pushing up of cashless system. Central Board of Direct Taxes detected and recovered Rs 4172 crore of unaccounted cash. The country registered 14.4 percent increase in direct tax collection apart from 26.2 percent increase in indirect tax collection. Central Excise collection also witnessed an increase of 43.3 percent.
Naxalism with approximately 600 Maoist and sympathizers surrendering in a month following demonetization, stopping of stone pelting events in Jammu and Kashmir, severe jolt to Hawala transactions in almost all major cities and gradual decrease of women and girl trafficking,speaks about the success of demonetisation.