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My Views On Demonetization of Indian Rs. 500 & Rs.1000 Notes to Curb Black Money


Prime Minister Narendra Modi, in a surprise move last year (2016), abolished Rs 500 and Rs 1,000 notes overnight in a bid to end black money in the country. They constituted 86 percent of India's currency in circulation at the time. As a Professor of Economics, I welcome the decision of our PM Narendra Modi to abolish Rs. 500 and Rs. 1000 notes to curb black money. But, I oppose the issue of Rs. 2000 notes, which will again promote black money.  The demonetization drive not only slowed down economic growth in India but also led to disruptions of common people's everyday life.  The RBI also launched Rs 200 notes on Friday, August 25. Even as that happens, according to a DNA Money report, the government will shortly start printing the new Rs 1,000 note to bridge the wide gap between the existing Rs 500 and Rs 2,000 notes. The new notes with enhanced security features could be out as early as December 2017. Thus, again Rs. 1000 notes will be re - introduced. If it is true, then the very purpose of curbing black money will be defeated. Except to carry easy, the big notes like Rs. 1000 and Rs.2000 will not help in any way to curb black money. Moreover, it is easy to hoard higher denomination notes, which helps to increase black money and for more corruption. In  USA highest denomination of currency note is 100$ note and in Britain also highest denomination of currency note is 100 GBP (Great Britain Pound). Then, why in India rulers cannot do this?, if they want to really curb black money. I request Prime Minister to bring black money from abroad, which he promised during his election campaign. While, rich people use higher denomination of notes of more than Rs. 500. Usually, the common people will use smaller denomination of notes up to Rs. 500 for their transactions. Then, why to issue Rs. 1000 and Rs. 2000 notes which help to increase black money. If our PM is really committed to curb black money, I sincerely request him to bring black money from abroad and stop issuing Rs. 1000 and Rs. 2000 notes. These actions will greatly help to achieve rapid economic development of our country. Especially, the black money brought from abroad will help to built infrastructure like major irrigation dams, roads, electricity projects, rail projects etc. and other, which will require huge investments. I also request Shri. Modiji to raise the income tax limit at least to Rs. 5 lakhs for general public and Rs. 8 lakhs to Senior citizens and women keeping in view of inflation and to bring more people under the tax purview, thus by reducing the tax the burden  and to further curb black money in our country. I further request Modiji to reduce the salaries and perks of MPs & MLAs to lead a simple life and to be model for the public.


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