Impact Of Demonetising 500 And 1000 Rupees....

The Recent announcement by PM Narendra Modi that Rs 500 and Rs 1000 is invalid and that one should deposit excess money in Banks is a brilliant move to clean up our Indian financial system where parallel economy runs through illegal means mostly transacted in the form of cash.

Poor salaried class earning Rs 30000 a month as white money is asked to pay taxes as his income is white and a person earning Rs 25 lakhs manages to avoid taxes as his income is stored as black money.....

Despite this move, it is a fact that money launderers still continue to convert their black money into white by following means,

1) using jan dhan accounts of poor labourers as means of converting their black money into white
2) buying gold
3) using their drivers, servants to stand in queues and convert money on their behalf
4)donations to temples and charitable trusts as money

But whatever said and done the following benefits would definitely reach Indian citizens,

1) Interest Rates of Loans will come down in March 2017 quarter as banks are rich with deposits now
2) General Public will start using their bank accounts more and it would boost the financial inclusion drive
3) Black money in real estate transactions is responsible for fake increase in prices. Prices would definitely come down at least for short term. Over Long term, it depends how the government plans to take their black money wipe out initiative forward.
4) Corrupt government bureaucrats asking money for all transactions/approvals from government will not get bribe in november december 2016 otherwise they will get bribe as Rs 500 and Rs 1000 invalid notes...........again regarding corruption over Long term, it depends how the government plans to take their black money wipe out initiative forward.
5) Tax collections will increase this year as people are rushing to deposit money........200% penalty will force at least some of corrupt to be honest
5) Tax Payer will feel happy that at least some of the corrupt people are losing money


What do IL Members think???.........Share in your views...........Let's understand different perspectives and views of people............

 

I agree with you..........I feel narendra modi requires a standing ovation..............I salute his boldness