A day without “CASH”

Everyone discussing demonetization of 1000 and 500 rupee notes. Media as usual got its bread and butter as 60 -70% of their time space is captured by easy news content on demonetization. I am not surprised to see the people’s reaction given the idea is celebrated by each media house and all parties. The opposition had definitely tried their best to oppose the demonetization by raising the people’s concern in and out of parliament and politicize the issue, but they couldn’t dare to openly oppose the bold step taken by the Modi government. Given that the 86% of currency notes have immediately been flushed out of the cash based economy after 1000 and 500 notes have been declared illegal tender on 8^th Nov’16, which made significant impact on Indian economy. It would be impartial to say that demonetization would only bring positive results.

We must understand that the roots of this problem mostly persist in unorganized sectors of economy which are driven by cash. I won’t say all business in unorganized sector possess unaccounted money but mostly do have lot of it and that’s the reason they are not willingly shifting towards transparent accounting of day to day cash in and out. Their stringent behavior and habit of earning thick profits are dragging down our tax collections and indirectly per ca pita income. It would not be justified to judge recent announcements from RBI and policy changes done by Government of India and certainly incorrect to say it is inhuman or not populist. If cautiously examine recent incidents we can understand the intentions and long term impact of demonetization. I am seeing this is a baby step towards cash less transaction and shifting our unorganized sector towards organised and promoting cash less business. This movement towards cash less economy will only be successful when all parties speak in a single voice. GOI took good decision when they decided to approve a committee of chief ministers, who will analyse the current scenario and would assist GOI on implementation of further steps to eradicate the cash based system and unaccounted money. Previous governments have narrowed our views and understanding of populist decision. Main opposition Congress believes only on pampering and distributing of money to the poor class which has adversely impacted our economy and pushed inflation into the system.

The success of this decision will not only have financial benefits but also widen our thinking and change the view of political parties towards idea of populist decisions. I am seeing that India is ready to accept any change which brings transparency into the system and irradiate poverty.