Sharp criticisms and negative feedback have doubled since Prime Minister Narendra Modi’s live public address to announce demonetization of ₹500 and ₹1,000 currency notes, aimed at curbing black money.
The plan that was initially received as a bold and historical event, which it really is, due to the not-so-efficient pre-planning, now face a situation that hasn’t really helped the root cause.
Is it really the best plan to curb the menace and put India en route to glory?
The below is what Rahul Agarwal, a Quora user thinks:
The Masterstroke Policy of Demonetization:
The media is hailing Modi’s demonetization of old ₹500 and ₹1000 note as a masterstroke policy on curbing the menace of black money.
Let’s have a look into few figures.
- What if I told you that total bad loans of Indian Banks right now is close to ₹6,00,000 crore.
- What if I told you that PSU Banks are in a miserable condition right now, and need immediate infusion of money to shore up their lending capacities.
- What if I told you that few weeks back credit rating agency Moody’s had stated that Indian Banks require ₹1.25 lakh crore capital infusion?
- What if I told you that in July 2016 the Centre injected ₹23,000 crore into 13 Public Sector Banks?
- What if I told you that Jaitley said it in 2015 that the Centre would pump in more than ₹70,000 crore in PSU banks in coming 4 years?
- What if I told you that this demonetization is nothing but a measure to infuse money in those ailing banks so as to shore up their lending capacities?
Can’t you see people queuing up banks to deposit their hard earned money, waiting hours for their turn?
What other “Masterstroke” would have made this possible?
Just trigger the panic button by stating that your old ₹500 and ₹1,000 currency is no longer a valid legal tender, and Voila!!!
People are queuing up since morning to deposit their hard earned money.
To curb the menace of black money?
By bringing in new ₹2000 note?
You don’t curb black money by bringing in notes of higher denomination. In fact, you are now simplifying hoarding of black money by bringing in new notes of higher denomination.
Ok. So what would banks do with the fresh infusion of money from public pockets
Lend of course. That’s what their business is. And to whom would these banks then lend their money to? You? Me? So sweet of you :p
You are in the deposit queue dear.
The following are in withdrawal queue:
(Note: the figures in bracket are their present repayable amount which they owe to various banks)
- GVK Reddy (GVK Group) (33933 Crores)
- Venugopal Dhoot (Videocon Group) (45405 Crores)
- L. Madhusoodan Rao (Lanco Group) (47102 Crores)
- G M Rao (GMR Group) (47976 Crores)
- Sajjan Jindal (JSW Group) (58171 Crores)
- Manoj Gour (Jaypee Group) (75163 Crores)
- Goutam Adani (Adani Group) (96031 Crores)
- Shashi Ruia & Ravi Ruia (Essar Group) (101000 Crores)
- Anil Aggarwal (The Vedanta Group) (103000 Crores)
- Anil Ambani (Reliance Group)(125000 Crores)
The govt. just carried out a surgical strike in your pockets, and now you are running like chickens.
That’s how crony capitalism works.
Note: Readers Mail neither validate nor support the above view and leave it to the readers to hail/criticize demonetization.