Indian government ban all the existing Rs 500 and Rs 1000 currency notes
Monday 14th of November 2016
The Indian government takes a bold decision to ban all the existing Rs 500 and Rs 1000 currency notes to stop the increasing black money. In the history of independent India, first time any stpe like this is taken and it divides the public in two category, while one think that this decision will prove very handy to recover all the black money and may eventually stops it, other think that this is the worst decision a prime minister had ever taken. Everyone has different thought so they can think whatever they want. Lets see what benifits can be achieved by this decision:
- It will make a reduction in price of various things like house, plot etc as the people can't use the black money to buy them now.
- People who uses to keep cash in home instead of bank or other sector like these. but now they have to submit that cash to the bank to any sector like that and bank will have more money and more no of online transaction. And for having more money the bank can lend more money to the needy one.
- Online shopping portals and the stores having card payment options will make the maximum profit in these few dates as the maximum number of cash disposal is very less from ATm or the bank itself.
- It will help the government to fight against black money, and also fight against corruption, terrorist funding as the money used for these purpose are all black money.
- People having huge ammount of illegal money stores in home or anywhere else will need proper documents of income proof to exchange that money from any authorised organisation like bank.
- With the limited ammount of cash withdrawls from banks and ATm the cashless transactions od card transaction will slowly replace the cash trnsactions in daily activities. It will leads to lesser number of snatching and activities like that.
New 500 Rupee Note (Specimen Copy)
New 2000 Rupee Note (Specimen Copy)
And now the problems people have to face for this are ;
- Many people in India doesnot having a bank account will face various problems for this.
- A huge ammount of money is needed for the printing of rs 100 and 2000 notes to replace the existing 500 and 1000 notes.
- Its very difficult for more than one third of the population who are not well versed with card transactions.
- The small business will be affected in short term atleast.
- And the big question arrise that how can the money be bring back to India that are stored in foreign banks ? And does this process can catch them who invested black money in gold or property ?
Everything has its own effect, some are bad and some are good. Now we have to wait to see the impact this process can made on Indian finance system. Because a great person says that every big revolution started with a small step.