Scrapping of Rs. 500 and Rs. 1000 notes
Pros and cons
Narendra Modi is known to possess an iron will and the sharpest of minds where administration and decision making skills are concerned. In his latest move, he has single handedly shaken up the bulwarks of Indian economy by withdrawing R. 500 and Rs. 1000 currency notes from the Indian market overnight. The said intention is to deal a blow to the flourishing fake currency racket. However, the impact is being felt by multiple stakeholders.
On the one hand, it is thought to have struck at the root of black money and freeing up the real estate sector of its artificially booming prices. Also, the banking sector will see a vast infusion of cash which will solve all its NPA problem and set the ball rolling for a healthy credit market.
The downside of government’s move is that vast majority of Indian population is unbanked and they will face hassles exchanging their hard earned cash. Most will even lose large amounts of money due to this turn of events. Although the intention behind the move is noble, the sudden haphazard implementation might prove to be a major mistake, the repercussion of which might cost BJP the state election in U.P.
Wait and watch is what seems appropriate at the moment as the real impact will take some time to be felt and seen. It might go either the positive or negative way but as of now, it’s too early to pass decisive judgments.
70 Opinions
Share
