New Delhi, 24 Nov : The Finance Ministry on Thursday decided that there will be no over the counter exchange of old Rs. 500 and Rs 1,000 notes after midnight of November 24, among other measures. This is coming after Prime Minister Narendra Modi assured the nation they have 50 days to exchange the old Rs 500 and Rs 1,000 notes.
Central Government decides that there will be no over the counter exchange of old Rs. 500 and Rs. 1000 notes after midnight of 24.11.2016.
— Ministry of Finance (@FinMinIndia) November 24, 2016
The decision of discontinuing ‘exchange of old notes’ will definitely hit the rural parts of India, as per statistic, only 53% Indians hold bank accounts, in which 43% are dormant , on average there is one bank for every 12 lakh population, the Rural areas depends on 80% monetary cash economy, which means insufficient source to exchange banned notes where its mostly used.
Supreme Court already warned BJP govt
The Supreme Court on 18 Nov questioned the government’s move to reduce the exchange limit of old notes from Rs 4,500 to Rs 2,000, saying the situation was serious and there could be riots. Therefore discontinuing the exchange will increase furthr more problems , how can Modi government ignore the warning made by the Supreme Court ?
Modi govt’s weak reason on counterfeit currency
Apart from Black money, Prime Minister Modi has highlighted the issue of counterfeit currency circulating in India as one of the reason for demonetisation, but the fact is the amount of counterfeit currency is so low that it never needed demonetisation.
Demonetisation will curb Black-money
The main reason Modi govt claimed for demonetisation of Rs 500 and Rs 1000 is Blackmoney stashed in India , but experts argued this claim, according to many economists the individual who have blackmoney does not stash in cash but convert it into commodities like Gold, silver; or properties or send it to foreign banks through ‘hawala’. Thus this demonetisation will not harm those people but only small scapegoats living in India.