Prime Minister Narendra Modi’s decision to scrap high-value notes came as a shock to the nation. Demonetisation triggered chaos in the country. People all across the country have lined up for hours and sometimes over the night to get cash. Some were successful in retrieving cash and some not so much. Yet in this chaotic situation, there have been very few to no reports of riots in the queues outside ATM’s or banks. Now, why is the country that has sparked outrage on tiniest issues stayed silent and endured this decision? The answer is quite simple, HOPE.
Hope can build nations and in our case destroy black money or eliminate shadow economy. While those with nothing to hide are peaceful, it is those with black money that are spending sleepless nights. First what we need to learn is:
What is shadow economy?
Every country has an official economy. Now Shadow economy is the economic activity that runs along with official economy but is unaccounted for. It is mostly Black market transactions, undeclared works, and fake currencies pushed into the country from other countries. And in our case Pakistan.
What are the Effects of demonetisation?
Though the Indian citizens are facing problems presently, there are mainly five areas that will be affected.
- Fake Currency: The 500 and 1000 notes constitute 85% of the money in circulation. Once these are out of the picture the terror organizations will be severely affected.
- Funds: Funding for arms, smuggling, terrorism will receive a huge blow since all the white money will be in banks. Hence it will be easier to discontinue fake currency.
- Security Features: The see-through and latent image with the denomination will make it hard to create fake currency. Hence the impact on money coming through from Nepal,
Bangladesh, Pakistan etc for funding terrorist activities in J&K will be higher.
- Parallel economy: Black money, hawala transactions will be highly affected as they have to visit every bank to exchange these notes.
- Trafficking and misc: The sectors like Drug trafficking, illegal trading, election funds, and involvement of various terrorist groups will have a major blow. The currency that once valued a lot is now worthless. Apart from these the highly affected areas include Real Estate, Gold and Informal sectors as these are the one that relies heavily on cash.
Though the move has drawn a huge criticism from opposition and experts and warning of riots have been issued by SC, the public has mostly applauded this move and has maintained support constantly. It is hoped that drives humans to function. Hope that gives us motivation to take steps in the right direction. And it is the hope of flushing out the black money and creating a corruption-free India that has give the strength to Indian citizens to cope with the stress of demonetisation.
While it is a boon for those who have paid their taxes and have an account of all the currency and properties. For those who stacked up Black money at their homes, it is a bane.
