Modi's current move of demonetization seems to be the current buzz word wherever we go.
India’s PM, Narendra Modi, surprised and even shocked many when he announced that Rs 500 and 1,000 notes would no longer be legal currency. This is some 86% of the entire cash money supply of the country.
Without getting into the political aspects (though I am sure that is a significant piece of the move), there seem to be some clear positives in this.
- Finally, the old cash being hoarded by the infinite households of India have finally seen the light of the day, and in some cases a bank account as well.
- The sudden purging of currency will bring the terrorist activities to a screeching halt.
- Suddenly banks are seeing a huge inflow of cash. Banks have cumulatively received around 5.5 Lakh Crore Rupees within one week.
However, there appears to be a lot of collateral damage. People are having a tough time accessing their own hard earned money which is lying in bank accounts. Needless to say it is indirect (forced) marketing for digital wallets like Paytm and Freecharge.
Are the big fish getting caught - I doubt it. I am guessing most of their money is safely stashed away in Swiss and other offshore accounts.
Is it scaring people - yes... but is it scaring the people who should actually be scared - No.
Is there chaos - yes.
But if it even corrects ~ 20% of the population and forces them to mend their ways, is it worth it - a vehement yes.