For the past two and half years, Narendra Modi led central government has been criticized of not being able to take any steadfast decision with regards to curb the ever growing fangs of corruption. Though the night of 08/11/2016 proved that not only the central government has a clear stand against corruption but also our PM has the guts of announcing, probably the biggest economic decision of its tenure, to the whole nation via a live television broadcast, something which is not very common in India.
The decision to ban the 500- and 1000- rupee notes will certainly effect the corrupt, though it is limited to the fact that its major effect can only be seen on the black money which is actually in cash. What about land? What about gold? The question also arises why 500 and 1000 rupee note? The major portion of unaccounted money which is used for any illicit purpose generally is in form of high value notes. This move deeply impacts the working sections of society. Anybody who provides services in the informal sector and depends on monthly cash payments.The UPI (unified payment interface) system is likely to be fully operationalised only by January 2017. Would it have not been better to wait until then, if this move was to shift towards a cashless economy?
The beauty of the whole operation lies in its secrecy. Electorally, this single decision may have the power of confirming the 2018 lok sabha elections in BJP’s favour. The “Achhe din” motto, as popularized by BJP during its election campaign had great dependence on how the government tackles the OROP and black money issue. With the Punjab elections coming, this anti corruption event may have just slightly changed off the electoral balance in the state. The hoarding of cash at home—which in all likelihood will involve Rs500 and Rs1,000 notes—will have to put the money into the formal system. And terrorist organisations, which according to the government have made repeated use of fake currency, will suddenly find their cash piles containing these notes worth nothing but mere paper. The general public was seen accepting this decision with open arms.
Undoubtedly this is one of the bravest decision taken by the government against black money, though the crucial part being its implementation.