Few days ago, Our honorable Prime Minister Narindra Modi announced that all notes of value Rs500 and Rs1000 will no longer be in used for any trade and these bills will be just ‘Mere Paper’ from midnight of November 8. This step from our government was appreciated imitatively by almost everyone in our country in different manners, even by those, who didn’t want to praise the step. We all united on Twitter, Facebook, Whatsapp, other social networks and also news media, to praise the step. We made jokes, found new ways to make use of these old notes. One of these jokes made me laugh not because it was funny, just because it was so stupid to be practical, someone shared a photo of Rs500 and Rs1000 notes in a scuttle in front of a Goat, I wondered, what this person would have done with the goat, if even one of these notes was eaten by this goat. So, The point is, Rather than understanding the significance of this step, we, the common people made it a joke.
When, I saw this news of currency ban, I was stun and happy to see government taking such an intelligent and bold step to limit corruption at last. So, I started to look into the news and how it would come into effect. But my happiness didn’t last for even 5 minutes of time, when I read about new Rs2000 note to be introduced. It felt like going 1 step ahead and 5 backwards.
What will be the effect of this step? Whom will it affect more, Common Man or the one with black money? I think it will be us, who will be affected. We are the ones, who doesn’t know to manage our money, who don’t use our money smartly, not the one who makes this black money, believe me they use it smartly. They have the connections to convert black into white. These People make thousands of Crores in Black Money, do they have all in cash? No, I guess not. They buy properties, businesses, Gold, shares or spend in illegal activities. But, we will have to suffer because we all have cash, even more than what we should have in our pockets, which is not our mistake, it’s our system, which allows us to have huge amount in cash. One Example is Rs2000 Note. So, why won’t we have cash? When we are allowed to spend big in cash. This step proves this point. Now, When Rs500 and Rs1000 notes are needed to be deposited in banks, we don’t even have reasons to explain for our cash amounts. We had R500 and Rs1000 note in past and now we will have Rs2000 notes. Banks are handing over Rs2000 note to us and they are useless for right now. We can’t even spend this money, It reminds me of a scene from a Movie ‘Phir Hera Phere’. Anjali played by Rimi Sen had a Rs1000 note, which she was trying to spend and have some change, but she couldn’t get change from any roadside shop and Raju played by Akshey Kumar got her. Same Hera Pheri is going on here, but here the note is even bigger, its Rs2000.
This change in currency notes have made a chaos, Rs500 and Rs1000 notes were 86% part of our total currency, and changing them overnight is inviting for a chaos, Even when we renovate our house, we prepare a room to stay in first, before starting the renovation in rest of the house, so that at least we will have some place to stay in. But here we don’t have money to spend, If you go to a petrol pump with a Rs500 or a RS1000 note, they don’t have change, we are forced to put Rs500 or Rs 1000 oil in our tanks, our daily spending entirely depends on cash and these small notes are not our favorite notes, so we don’t keep much of them. Its quite normal, in an economy where these small notes are just 14% in the total money.
Even here some measures could have been taken secretly, which could help to avoid this chaos as well as limit the currency storage. They could secretly decrease the number of Rs500 and Rs1000 notes and double the number small notes like of Rs20, Rs50 and Rs100, which could have increased the flow of small notes in the market, so that when this change of notes is occurring, everyone at least had some money to spend. Now that we know, we have less notes of small amounts, we are trying to keep our notes to ourselves, as much as possible, because we don’t know how long this process of changing notes will take. It could benefit in some other ways too, like big money exchange would have been forced to be carried out through some other medium rather than cash. Which should be our prime goal, to limit the use of cash in our markets.
In some other countries, the use of high value notes is limited and controlled, like in Canada, the biggest bill is 100$, and even that is not the major part of daily use, you cannot withdraw 100$ bill from a ATM, you have to go to a bank to have that, its 20$ bill, which is used in majority. Even that is equivalent to RS1000 and here we are with Rs2000 note in our hands, which is the most valued note in the market but still no one wants to have.
When we have our 30% of the total population below the poverty line, which is less than RS100, and our 86% currency in use was Rs500 and RS1000 and now it will be Rs500 and Rs2000, how funny does this look like. I don’t even need to crack a joke, this scenario itself is a joke.
If the government had to take such a massive decision of withdrawing 86% of money and justify change as a step towards limiting Black money, Cashless economy and all other justifications, at least the alternative could have been better, but this 2000Rs note! seriously?