One of the demonetization debunking post- A perspective
On a recent front, I come across so many posts doing rounds on demonetization and the circulation of half knowledge is half-baked!
So why not try to put it at ease with some really ignorant ones
- Blame for improper implementation - Jandhan Yojana was started by the government a year back to bring every person under the ambit of banking. People who are uneducated, ignored it because they don't know the value of banking practices. Who do these uneducated or the less privileged people work for? The obvious shoot would be at us - The White Collar Professionals. But could we do anything about it? Did we at all consider the pointer on teaching them why its in their best interests or to ensure that they are part of banking? We live in a participating democracy, we have responsibilities and if we are shirking off them, then why raise the criticism on people who are doing something about it.
- Withdrawal limit - A simplified example, suppose there is no withdrawal limit. A businessman who has a far more spending capacity would walk into the bank, show a cheque of 50 lac and walk back home emptying the branch money while we the educated lot would be standing there like a goof. Hence, the restricted withdrawal comes into picture, so that everyone has equal opportunity of accessing money.
- Less cash printed - Amidst this implementation, most of us who talk about printing more cash to suit the country's needs might not know the nada about economics. If printing currency becomes the sole concern without giving regard to the underlying asset, market conditions and the amount of old currency that has come back to the RBI, you will have devaluation of the currency first, followed by inflation and then finally deflation.
That might well be jolly good for us, since all we need is liquidity at this moment. But no, that cash meanwhile having no value is worth a catchpenny now!
Shunning the excuses and rigid ideologies every time, this is the first time an initiative has been taken against corruption and money laundering. If this fails there might not be any of the though leaders who would stand up against it for the next century or take the plunge to execute it. Our previous generations stood by and watched our country getting looted, let's not stand by the side when we have an opportunity to change. #VaryingPerspectives #JustDntSupportPoliciesWidPreferredLeaders
Good. Can you share if the 'stated' purpose was achieved? Also, after a good 100+ days even government and RBI seems to have no clue on how much black money exists in the system. Corruption continues. Terrorism is at its peak in J&K. And we have counterfeit 2000 notes churned of from ATMs. Just curious which of the four stated purposes was achieved.
Sir to quell the points... Through this post I tried to portray the other side of demonitization which isn't really affecting the common mass. Coming to the villagers/farmers who doesn't have access to the banking system, they have access to post office (as per government mandate for receiving subsidies on fertilizers, you need to have a post office account or designated co-operative banks). So there are to arrangibe banking infrastructures as well. Guess, thats about the ecosystem and its a constant vicious circle of people and resources, so we cannot employ the mass as a whole but this is what knowledge transfer is all about! If one gets the benefit, eventually it gets ransferred. At present, the "people from the weaker section" also don't need a smart phone for cashless transactions. As apps like mSwipe works on a featured phone or any device so will Paytm. At the end of the day, the primary motive is that, there is no idle cash in the country. Idle cash means the government has to print more money which results in devaluation and poor economy. So even if a person goes to buy jewellery worth 1000 bucks, the jeweller is still going to deposit in the bank, thus it enters the circulation.
O Wise One, can you please clear some doubts of an “ignorant one”? Blame for improper implementation – How do you propose that we “The White Collar Professionals” – 1> Ensure that the 27% of the population (target beneficiaries under PMJDY), who don’t yet have bank accounts, access the banking system? 2> Arrange for easily accessible banking infrastructure to all those who reside in far-flung villages in the rural hinterland and semi-urban centres? 3> Educate those who reside in villages and tier-2/3 towns and don’t work for us? 4> Compensate people from the weaker section for the lost wages and income for the hours/days spent standing in bank queues? Withdrawal limit – Makes sense; why not reduce the withdrawal limits even further to ensure that the great unwashed masses also are not left “standing there like a goof”? After all, “we the educated lot” can always return to stand in a bank queue as & when required same as a proprietor of a micro-enterprise has to return often to withdraw funds sufficient to continue running his economic activity! Less cash printed – Can you please name one economist who says that demonetized, delegitimized currency continues to be part of money supply until physical return to the Central Bank and hence printing new notes to replace the discontinued notes would lead to devaluation? How come, no one in FinMin or RBI stopped to think before getting the new notes printed for 2000 & 500? AND they are still printing more and more!!!