Demonetization: A blessing for India!

Hello everyone,

With US presidential election taking place this month, it was only logical to assume that the trending topic in the world at the time would be of Trump & Clinton. However, a surprise move by the Indian prime minister (Mr. Narendra Modi) on 8th of November of demonetizing Rs. 500 & Rs. 1000 completely changed the scenario. From news channels to whatsapp messages, only topic being discussed was that of demonetization.

As we all know, this act by the prime minister has caused a roar in the country. While there are many who have been supportive of demonetization move, there are others who have strongly resisted the same. Finally, there are others who have supported the move but believed the execution wasn't done well.

Having watched & read all about the advantages & disadvantages of the same in the past 2 weeks, I still believe demonetization proves to be extremely beneficial for India due to certain factors:

1) Transparency on 'non taxed' (black) money: Definitely the key factor due to which this act was initiated by the Indian prime minister. Having demonetized the currency he left the non tax payers with no option but to either declare their non taxed income or let their cash value (in Rs 500 & 1000) become nil.

2) Stability in banking sector: India's banking sector which has been facing some turmoil for awhile now will get to stabilize itself from this move. A large sums of deposits following the act has brought about a good amount of stability in the banking section.

3) An end to 'fake' currency: Demonetization will certainly have a strong and positive impact on abandonment of 'fake' currency to a great extent.

4) Boost to 'Jan Dhan Yojna' (people's wealth program): The campaign introduced by the Prime Minister in 2014 to provide safe, secure and affordable banking system to every family in the nation; will be on the rise post this act, as every family will have to open an account in order to deposit the 'demonetized' cash.

5) Online payments on the rise: Following the demonetization policy, the awareness and use of online payments has been growing rapidly. Some of the startups who have experienced the positive effects of this policy are 'Ola' & Paytm. For instance, Bangalore-based Ola saw a 15-time increase in recharge volumes on its e-wallet, 'Ola Money.' People now prefer to pay online rather than cash on delivery, following this move. In addition, smaller towns who are well versed with cash as the primary mode of payment have gone online, leading to as much as 30 times growth in online payments.

Now I do understand that there have been several negative implications as well post the implementation of 'demonetization' like: people having to queue up for hours to deposit and withdraw cash , delays in marriages, decline in proper health care to citizens etc.

However, we all know that no progress of a society, race or country is possible without appropriate 'change'; at the same time it is inherent in human nature to resist any sort of 'change' as we are more concerned with the 'loss' resulting from change rather than actual gain .

As someone rightly said: "All change is hard at first, messy in the middle and gorgeous in the end."

Feel free to share your views on the same in the comments section below.

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