Demonetization Benefits Have Begun Accruing
Around 50 days ago, India tugged largest denominations of currency from circulation suddenly, shaking the economy and leaving the majority of its citizens struggling for cash. Demonetization was Prime Minister Narendra Modi’s initiative to transform India into cash less economy.
Demonetization took Rs 500 and Rs 1,000 notes out of circulation. With this move, around 86% of the total money supply had to circulate via the banks, either to be exchanged in limited amounts for the new Rs 500 and Rs 2,000 denominations or to be deposited into respective bank accounts.
In the face of all the inconveniences, Prime Minister Narendra Modi hails his 8 November demonetization move and assures that this has successfully uncovered tax evasion and eliminated the black money in circulation. The Indian government is demanding patience, affirming it’s playing a long game that will ultimately benefit the poor and renew the Indian society.
Thus far, despite of the extensive inconvenience, country’s over 1.25 billion citizens appear to be hailing Modi’s decision. Due to the shortage of currency availability, digital transactions have become the last resort. Several other forms of digital payments are also promoted in India.
Considering a higher traction on RuPay card and Paytm portals, the government is also promoting digital payments in other fields such as railway ticket booking, toll booths, insurance premium, petrol and diesel pumps by offering great discounts and deals.
“The citizens of India have a right to know the amount of black money that has been returned to the government. However, it is too early for RBI to announce any such amount. Presently, they are occupied figuring out how much black money is still circulating. We must give government some time to sort out everything, and till then 2019 elections will also approach. We can elect PM Modi again for availing all the benefits of demonetization after the win.
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