I was standing in a queue outside a bank for exchange of my old currency . I saw a group talking about pros & cons 0f demonetization of 500 & 1000 rs notes .
Then I didn’t join them but focused on my task of fetching money from bank . but I thought to make you provide the whole analysis of the demonetization .
In his recent address in Goa the PM Narendra Modi clarified the whole game behind curbing the black money.
If we analyze his words we come to know the whole picture .
One of his agenda on time of the election was “to curb the black money”. and he stayed firmed on his words .
All the process came step by step as follows –
1 . Pradhanmantri Jan Dhan Yojana
Every individual was linked with a mandatory bank account under the scheme of PJDY . earlier the black money holders used to use unorganized sector as their escape plan . but with this scheme this escape plan was already snatched .
2 . Direct Bank Transfer (DBT)
As a part of the policy this step was initiated for abolishment of middleman & prioritize subsidy mechanism . LPG (liquefied petroleum gas) was linked with bank account of every individual further eliminating all middleman. There are also other entities that has linked with DBT .
3 . Mandatory Aadhar
As part of identity enhancement every bank account was linked with Aadhar . this has increased the reach of banking sector in remote areas improving the banking surveillance network .
4 . Banktuptcy Bill
There has been a problem of rising Non-performing Assets in the banking sector in the ongoing decade . thus there was an early need of financial inclusion & debt recovery of assets . that’s why bankruptcy bill came .
5 . Gold Monetization Scheme
There has been a tendency of black money makers to invest in the gold . and there was not a tight mechanism in the sector , hence , came the GMS . its objective was to collect all gold in hard form as a time deposit and extra premium on the same . another a step to curb black money makers .
6 . Cash Less Economy (CLE )
The govt provided RuPay card to every household as a part of CLE . RuPay was accepted as online payment gateway by the banks . this was the most signatory step to have the idea of demonetization step .
7 . Extended Income Tax Payment Deadline
To give a chance to faulty people the govt published many news regarding income tax payment . the date was extended .
These were the hidden signs . if someone had understood he had taken right step . but no one was expecting the worst address on the eve of 8 nov 2016 .
Finally it was the time to make announcement of DEMONETIZATION .
The honourable PM has seeked 50 days time period to eliminate the devil (black money ) . masses are eager to see the charisma of their loved prime minister .