In the midnight on 8th of november , governmemt of India took a bold step to black out the 500 and 1000 rupees currency notes from circulation and issue of new 500 and 2000 rupees notes. This demonetisation of notes is a serious and bold step to just kick out the unearthed notes which is the real cause of the wide gap between the rich and the poor in India. This was really a surprise to everybody as modiji again showed only great leaders can take great decisions.
This decision to black out the circulation of big currency notes is done to take out the black money, taxless wealth which people have put in their homes, stop funding of terrorism as big value notes are in action for this proper supply of funds between these terrorist organisation. Today indian population has such a high amount of black money that once people start giving proper income taxes to the government the growth and development will automatically will start faster.
Today many businessmans , lawyers, hospitals owners, politicians, etc have huge amount of cash which is no where in the eye of income tax department. In elections black money is used in a significantly high amount which will definitely dampen the growth , integrity and development to farmers, workers, lower middle class etc in India. The demonetisation of these notes will force the people to show their wealth and if they dont these huge notes will be just a piece of paper.
Demonetisation procedure is not new and it is discussed in other countries also. Whenever there is a huge amount of black money cirrculating throughout the country , government demonetises the high value currency notes so as to curb the black money.
Today in India there is 39% of 1000 rupees currency notes and 45 % of 500 rupees notes in circulation. The amount which is used to print a 1000 rupees notes is around 3.5 rupees and to 500 rupees note it is 2.5 . There will be no problem to those people who deals in cashless transaction i.e is by cheques or debit or credit cards.
This decision is surely a tough for small businessmans and to those people who deals in cash. This is just a few weeks tension or difficulty but by this decision the new phase of Indian economy will definitely starts. Today huge cash is in the form of black money is circulated in real estates and land businesses .Suppose you have a land of 1 crore. If you will pay proper tax to this money it will be around 30% to the money exceding 10 lakhs. It means you have to give around 27 lakhs tax to the government in this amount 1 crore . But today hardly anyone dealing in the land businesses give such a huge amouny of tax. Demonetisation of big currency notes will slow down the rates and prices in real estate and constructions.
A visionary man Modi Ji just kicked the black money in the single stroke on the midnight. It departement will surely have a keen eye on people now . Demonetisation will be very effective in countries progress as unaccounted wealth makes rich more rich and poor people more poor.
There are many cases of fake currency around India. People dont even know if they have a real note or not. By just demonetising big currency notes these fake currency will have no value. Money used in terrorism activities is basically these high value notes . Terriorist uses these black and fake currency to buy arms and ammunitions. There is a huge loss to Rbi because of cirrculation of fake currency.
Many people have applauded modi ji and reserve bank of India for this immediate action.It was a superb decision in a single hit and it will all change the corruption and black money methodologies in India surely. Though people will have to stand in a line for hours in banks and atm’s but its a few weeks tension. Some good days are comming in the leadership of Narendra damodhar das modi and it will surely come in future. The solid plans of modiji like ujjwala yojna, jan dhan bank account etc have been well in target. People are accepting the solid leadership of modiji. My India is changing and we common people should also understand our responsibility for the growth and development of the country.
The new notes of 500 and 2000 will be different. Those who have real legal money can exchange their white money in the bank. Only things we have to do is to show our respect for this decision. We as a citizens should help in the integrity, soverignity and development of nation.