The Impact of 500 and 1000 Rupees Notes replaced in India
- PM Modi made the announcement on 500 and 1000 rupees notes demonetization.
- It has a great impact on the nation’s economy and public response.
- The decision was taken to combat corruption, black money, counterfeit currency, and terrorism funding.
- The sudden announcement has created greater inconvenience to the general public.
- Cash payments, small business sectors and working sections are severely affected.
- The need to recalibrate ATMs to new currency has created unnecessary tension across the nation.
- Modi’s bold move and noble idea is poorly executed.
The Impact of 500 and 1000 Rupees Notes replaced in India : (Brief Essay)
The last week has been so sensational that Modi made it to the headlines, winning millions of hearts. The surprising announcement about the 500 and 1000 rupees notes being demonetized makes a great impact. Just within few hours, thousands of notes went from its value to pieces of paper. When PM Modi addressed the nation on November 8th, 2016, the media along with the nation shook in surprise.
So, now what is the reason for the 500 and 1000 rupees notes getting replaced in India? This is a surgical strike for ending corruption and terrorism in India. This is indeed a bold move by the government. Scrapping 500 and 1000 rupees notes from the public would help demolish black market and terrorism considerably. Other possible reasons for replacing 500 and 1000 rupees notes is to end counterfeit currency, terrorist funding, and arms smuggling. Also, this decision would be a slap on the face of black money holders. Withdrawing high denomination notes is surely the first step to fight against black money. The income tax department in the country will track all the scrapped notes sent for exchange. This will help the country to admonish the black money hoarders from blocking the money. Moreover, this sudden announcement has increased bank funds, owing to deposits.
When we say ‘demonetization’, it simply means ending of the 500 and 1000 rupees notes to be a legal tender hereafter. As an alternative, the government has introduced new 500 and 2000 rupees notes, which would be introduced to general public on exchange for their older ones. However, until then, people have to rely on their 100 rupees and lower denomination notes for their daily transactions.
The decision by the Indian government has already instilled hope among the hearts of millions of people. However, few are still meddling with the inconvenience caused by the current situation. The society has literally become cashless and demand for lower denomination has increased overnight. While people are rushing to the banks and ATMs to get their higher denomination notes exchanged, it is causing severe inconvenience and havoc everywhere. This is where the real problem arises for the common man and working sections of the society. The sudden change of currency is sure to affect these people who base their income on daily wages. Cash payments would be halted for at least a few weeks or so. Also small businesses will be severely affected, at least for few months due to lack of cash transactions. However, the government has announced the hospitals, pharmacy, cremation grounds, and other government offices to accept the 500 and 1000 rupees notes from general public to avoid any serious inconvenience.
Such a noble idea has been poorly executed by the government. Since the new currency notes are non-complaint with the existing ATMs, it has created needless tension among the general public. ATMs need to be recalibrated in order to make the new currency notes dispensed. It requires a complete makeover and this might take another two to three weeks. Of course it will be quite difficult for the people to adjust but the long term benefits are still to consider. We have to accept that always something is better than nothing.
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