The 2016 Demonetization Blunder

Demonetization is the process by which we scrap out old notes from the market and then supply new notes or else completely abandon that particular note.

History of demonetization:

There were two instances of demonetization back in the years 1946 and in the year 1978.The highest denomination note printed by the RBI was of 10,000. Also these notes were made out of market once in 1946 and then in 1978.

Now  today is 8th of June and after analyzing the total demonetization, I feel myself to write about the Demonetization blunder of which we suffered.

On 8th of November at 2000 hrs,our PM announced that they will be abandoning the 500 and 1000 currency notes. This was widely accepted as a good step towards a better India, an India without corruption. Immediately everyone was happy(the good people).

Then, the main problem started when people had to exchange their old notes. The total demonetization wasn’t previously prepared for. We have a country of 131 crore people and we cannot do anything without preparation. The government should have printed enough amount of notes such that there should’t be any problem while exchanging.

Demonetization was projected for:

  1. To reduce the amount of black money: Black money is generated by the people who don’t give taxes and hide their money in the form of cash. I would like to raise a question that if demonetization took out black money from the corrupt,where is that money? Shouldn’t government give a record of the money gained by demonetization? Most of the money invested in the election campaigning come from various sources,are they all white sources? From where does that money come from if that all is white?
  2. To reduce stone pelting on Kashmir: Stone pelting was stopped for a few days and then it started again. Stone pelting was from black money right? So if they were using black money then after some days that money was used again. There must be some sources through which they had converted Black into White. 

I don’t see any other agenda for which government was projecting note ban. And yes,some amount of counterfeit notes were of no use.But if we see the stats, 16 notes are false out of 250 notes in India.

We had all this, but no-one cares about the price we paid along with demonetization. Around 100 people died. Farmers stopped getting their prices and Businesses stopped. Many marriages were cancelled,many important processes stopped.

India lost it’s fastest growing economy’s tag, as GDP falls to 6.1%.

Why isn’t government telling the money they got/captured through demonetization? Or else it failed?

Just think about it!

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