Ban 500, 1000 notes - Corruption Uprooted or just changing clothes!

Ban 500, 1000 notes - Corruption Uprooted or just changing clothes!

Ban 500, 1000 notes – Corruption Uprooted or just changing clothes!

If you have a 500 or a 1000 Rs. note, then frame it. It depicts an end of an era. The sudden, surprising and a definitely bold move of the government to ban denominations of Rs.500 and Rs.1000, has left all in a huge panic. With banks and ATMs closed for 2 days, people are in a state of helplessness. Any change/revolution needs a bit of sacrifice. How useful will this sacrifice be for India and our fight against corruption?

A huge and costly dent in black money

1. The most prominent effect would be seen on people having money stored in form of currency notes. Most of the unaccounted money (Black Money) is hidden in denomination of 500 and 1000. This move will render that money useless.

2. This move will enormously affect the funding of terrorist organizations and arms dealers as they can never be able to legalize the currency notes they possess.

3. This would also remove a large chunk of counterfeit currency from circulation.

4. Many would cite that even earlier such a move was tried, yet black money prevailed. However, this time since the amount of black money is huge; the dent in it will also be huge.

5. Due to inability to use the entire black money or convert it to legal money in such a short time of 50 days, will lead to reduction in prices of many commodities. Black money has been prominent in increasing inflation as cash transaction is the most prevalent form of transaction in India.

6. Since Income Tax department and banks will report large transaction and deposits into a bank account, transferring money in others name would not be possible. This will tighten the noose on illegal and benami assets.

7. If any person possessing Black money decides to deposit money in his/her account and pay the taxes which he/she might have avoided, these taxes will benefit the nation itself.

8. The newer currency notes of denomination 500 and 2000 will be much more secure and difficult to fake.

Corruption – Just changing clothes

1. Corruption can never be uprooted completely by such measures as it is a tendency of humans and only a change within ourselves can be a solution.

2. The only effect this move will have is the inconvenience it is causing citizens and some small time corrupt people who might have cash stored away. The big fish will escape with small bruises.

3. Even though the notes are banned, there are host of other measures to maintain unaccounted and illegal assets.

4. The government will be introducing new 500 Rs and 2000Rs. Notes. This is pointless as people will again get chance to have unaccounted money because of the higher denomination.

5. Though some may not be able to use the huge stack of money they have stored away, most of them have their money in form of gold, etc. This will not be affected at all.

6. Since many will be using the unaccounted money to buy stuff like gold, jewelry, precious stones, etc. under fake names, the prices of these commodities will increase a lot. This will again be an inconvenience to common citizens as these things will get out of their reach.

7. Many having black money have already kept it in tax havens, etc. This is a huge amount compared the amount we might find in India or as unaccounted cash money with corrupt people. So as such it will not bring back the unaccounted wealth stored outside.

8. The 50 days’ time given for currency conversion is more than enough for tax avoiders to come with a scheme to make their other arrangements for their money.

It is a start. There can be no panacea for human tendency to be greedy and corrupt, but there can be measures to keep such people under control. Though banning currency notes may not be a long term solution, but in the short term it can have a huge effect as the stored caches will be rendered useless. It might not be a huge victory but it is a victory nonetheless. This measure when supported by other better policies and good governance will surely tighten the noose on corruption. So, it is important to support this venture and hail it as positive step towards corruption free India.
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    Discussion

  • RE: Ban 500, 1000 notes - Corruption Uprooted or just changing clothes! -Sulabh Srivastavas (12/07/16)
  • according to my point of view this is big step by govt. for exosting the black money but i think there is lack of managment in this program as we can seen huge and very long row is stand out the atm,bank alongwith female and old age people and it seems thst there is no preplan for handling the problems because we are seeing that every day new rule come out which show lack of preplan but we welcome and support this programm because we want to see India as devloped country not devloping country.....
  • RE: Ban 500, 1000 notes - Corruption Uprooted or just changing clothes! -sravya chava (12/07/16)
  • India wouldn't uproot coruption over a night but even 10%of black money can be used to educate 10000 child labour,to feed 15000 undernourished,saves atleast 1000 diseased people how can be treated with medicenes..........so plz co -operete with the government .........hamara desh badal raha hai.........hope my children colud say India is a developed country
  • RE: Ban 500, 1000 notes - Corruption Uprooted or just changing clothes! -S.SOUNDARYA (12/04/16)
  • This idea is so good.but doing it in sudden may people suffer..If he is informed about this in before itself,then all BLACK SHEEPS will be finding an alternative solution and seems to escape..i.e may buy gold etcc...corruption fully cannot be reduced,but can be under a limit..i think all are comfortable with is.
  • RE: Ban 500, 1000 notes - Corruption Uprooted or just changing clothes! -S.SOUNDARYA (12/04/16)
  • This idea is so good.but doing it in sudden may people suffer..If he is informed about this in before itself,then all BLACK SHEEPS will be finding an alternative solution and seems to escape..i.e may buy gold etcc...corruption fully cannot be reduced,but can be under a limit..
  • RE: Ban 500, 1000 notes - Corruption Uprooted or just changing clothes! -Yashavanth (12/04/16)
  • First of all welcome to the measures taken by the Indian Govt. after around 70 years of Freedom.The demonetization is the best way to scoop out the black money those who are sleeping by making them as bed.
    Then ban of denomination of old 500 and 1000 is better way to get out the black money.Now the people hurry to deposit their money in the bank but the IT department is looking as eagle to hang.The newer denomination has more secure feature than older, can easily track the currency holders.And also they are taking such a good measure on non-currency assets which as also heartly welcome.
    But only thing is that, the problem of limitation supply of currency. Crowd hanging in ATM and Bank's to get the amount. But they feel happy with the rules.We can say that Modi Govt, have taken such a wonderful decision but do you think somewhere they failed to take precaution of currency??.
    Anyway they have given time and they also said will resolve this problem soon.Hope I think you also agreed with my view!! What you say??
  • RE: Ban 500, 1000 notes - Corruption Uprooted or just changing clothes! -Jaya Priyadarshini (11/30/16)
  • Concept is really appreciable but can say the plan was not implemented correctly.
  • RE: Ban 500, 1000 notes - Corruption Uprooted or just changing clothes! -Utkarsh sharma (11/19/16)
  • Cancelation of 1000 and 500 notes is the biggest step took by our PM narendraModi for exost the black money and change the currency.
    By this single step a lot of money of fat rich people is go down. People can deposit only 2.5 lacs if they want to deposite more then income tax Department want details. It is a up hill task for everyone . But by this decision people faces a lot of problem. A huge ammount of crowd is outside the bank ,ATM.
    People hanging ATM to ATM and bank to bank for change and withdraw its money.usually people would like to keep it 1000 or 500 notes.
    So it is a difficult one to go without 500 and 1000 notes.some people dont haove money to purchase groceries , daily usages thing etc. I think that if PM gives sometime to change our money so people dont face a lot of problems.
    This decision is not completly right. PM immediately take this decision so we face problems.but our youth is supported to our PM and they want to be patient and support this decision and helps other people.....

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