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Saturday, 18 February 2017

Demonetization affected the common people rather than Black-money Holders.

By Dr IM  |  09:23 No comments

Demonetization affected the common people rather than Black-money Holders.


In first demonetizing seemed to be a very positive step taken towards corruption and black money holders.It received praises from all sides but as days passed, it became difficult for peoples to manage cash.A major chuck of cash is stored by peoples as 500 and 1000 notes. Common people found it difficult standing in queue outside the bank\ATM for notes exchange\ withdrawing money.
The major attack of demonetization was on village people\small scale business such as shopkeepers, vegetable vendors etc., the business claimed due to scare of cash crunch.They are unaware of digital banking and POS system so it becomes quite cumbersome for them.The poor who only earn enough to meet their needs with a substantial amount of their saving stored in the demonetization of Rs.500 and 1000.They usually earn and spend on a daily basis leaving very fewer saving for emergency situation.
Their earnings have certainly impacted as India has blocked 86% of the currency notes in circulation,resulting in shortage with the majority of work force belonging to the informal sector,currency Ban has hit them badly, For eg.  Vegetables vendors, fruit sellers, flower shops, small scale businessman which belong to small sector they don’t rely on banking transactions rather dealing cash.With this BAN their has been significant dip in the consumption resulting in their massive losses.Many people standing outside the bank for notes exchange,find it difficult, ATM’s do not have enough cash available. With fewer ATM’s peoples are seen in large number standing outside the ATM’s while the politicians,black money holders , rich people didn’t find it difficult.There is no dearth of money for them. On the other hand where common people find it difficult to arrange marriages just due to cash shortage.
Recent reports of big fate of wedding of Nit in Gadkery’s daughter shows that it is only the common people who are affected by note banned not the politicians and the black money holders. Political Parties to have major amount of new currency notes in the form of party fund as excuse while common people find it difficult to meet the emergency situation such as medical, daily needs, no worry for high class big politicians, businessman’s, industrialists. Government is still saying to keep patience for people enough cash is available but only a meager two thousand daily limit of cash can’t meet emergency requirements. How can you expect village person to use digital banking system. They don’t even have mobile phones, even if they had they don’t know about the use of banking system. Many security loop holes have been reported from DBS such as Paytm and other payment merchants.


Farmers are finding it difficult to purchase seeds, fertilizers etc., they are helpless small scale business are most affected by it. Even the govt. had not anticipated this would happen after demonetization, it definitely rush into the drive with no homework done, had there been stringent measures to keep money laundering to check people wouldn’t been suffering from shortage of cash and can Ten lakhs and crore of Rupees have been caught at the hands of political leaders but the common people are still console in the name of DBS. A cashless economy is less vulnerable to corruption but what about the current problem of cash crunch and mismanagement that it has caused to the common people. Why only common people are always treated badly? In order to serve the long term good for the political parties it is not a democracy we are talking of.


How demonetization is affecting common people more than black money holders?

This is one of the most debated topics today. Demonetization is an established practice in monetary policy to tackle black money by Prime Minister NarendraModi.
According to me, this is a good move but the small farmers, sellers, merchants, daily wage labourers and traders are suffering because of lack of proper planning, intelligence. They all standing in front of the ATm's and bank for the whole day and facing problems because of the limit of withdrawal & insufficient money. The effect of demonetization affects every people. But the severity of this affects mostly the black money holders.
Common people feel difficulty in exchanging money only. But the media use this situation for their benefits. They concentrate more on the people waiting in the queue for a long time in the bank. They also broadcast it every time. This changes the mindset of the common people. So we get the news that they face more difficulties. Demonetization totally affected both middle class and high class people. Now here little Change seems. That is some of the people easily overcome this issue. Many of not.There will be some difficulties in everything. But the impact of this is larger on black money holders. We the common people should co-operate with our government. If we ready to walk on the way of thorns, our future will be bed of roses.
At the starting stage of this demonetization this was true because it seems like common people are suffering from that decision. But as the time passes slowly problems of common people are decreasing and black money holder’s problems are increasing.


As coming to the problems facing by common people I can say one thing if a soldier says why I should risk my life for the sake of you people then we will not able to sleep in our houses happily. Trust in the decision taken by Narendra Modi because every where people critisizism is common. People say when we listen. If today we face problems our children's generation will leave happily.
We all know the fact that if we are on a good path there will be many obstacles we have to tackle them. These problems of common people are for only a few days but the black money holders will face a long-term problem. And about moving towards cashless economy, yes it's good but for implementing it we will have to first make people aware of the benefits of a cashless society.
Even a mighty ruler has a fall, and hence even it is a good step, there will be some draw-backs. Notably daily wage workers and farmers. The people who hold their money in terms of property are the kings of trade since they don't get affected but still there are some people who have in terms of cash. Common people are the one who gets affected the most but the scenario may soon change for them but for the black money holders it is a complete nightmare.

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Author: Dr IM

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