Nov 18

Demonetization in India – An overview for you

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The Narendra Modi government shook India last week(Nov, 8, 2016)by declaring the demonetization arrangement and transforming notes of Rs 500 and Rs 1000 into paper. While individuals were permitted to trade their old notes for legitimate coin, store the cash, or pull back a specific sum from the ATM, the move saw uncommon lines outside banks and ATMs with bank representatives

Patna: People queue up at an ATM in Patna on Saturday. PTI photo(PTI11_12_2016_000101B)

Patna: People queue up at an ATM in Patna on Saturday. PTI photo(PTI11_12_2016_000101B)

working extra minutes to compensate for the trade mash out the regular man’s life.While this has created a common created a cash crunch for common man. The real hoarders are able to get away by doing alternative arrangements. As per a news report, Within a week of the announcement of the move to demonetize Rs. 500 and Rs 1000 notes to curb corruption and black money, two port trust officials from Gujarat have been arrested for accepting a bribe of Rs 2.5 lakh, on Wednesday. Also an extra of Rs 40,000 was recovered from the house of one of the men.
The richest man on planet Bill Gates has said this to be a bold move taken by government to curb shadow economy.While he appreciated the current BJP government for this action against corruption, many countries are seeing this as a measure to cope up with the failing Indian economy and criticizing this step of extorting common people’s hard earned money to deal with the situation. So far, more than 50 deaths have been reported due to standing in long queues of converting money at the bank.
The Legal Department’s stand
The Supreme Court on Friday cautioned that there “might be riots” and denied the administration’s request to stay bodies of evidence recorded against demonetization in High Courts and lower courts the nation over, saying ‘how might we close our ways to individuals when there is an issue of such magnitude.”A Bench drove by Chief Justice of India T.S. Thakur noticed that individuals have begun getting to be “rushed” for cash, conquering lines for quite a long time. The very reality that cases are being documented in courts all over is a flag that the issue is “serious and of magnitude” it observed.
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Due to poorly executed plan by government, people are suffering.There have been reports of BJP member’s admitting that business leaders of India like Adani and Ambani were able to get away with this demonetization situation as they had information about this action well in advance. An SBI loan of 1201 crore(USD 1.7 billion has been written off for liquor tycoon Vijay Mallya.