What do you think of the decision by the Indian Government to demonetize ₹500 and ₹1000 notes? Will it help in curbing black money?
Govt Should stop printing Rs. 1000/500 Notes. Also Change the print and format of 500 & 1000 notes. Ask the money holders to deposit the notes of 500 & 1000 in there bank account as new notes will be issued in short period of time and old notes of 500 & 1000 will be not counted as currency from the given date. From this news all the person who are holding the black money or duplicate note will deposit money in there bank accounts and person doing the business of duplicate notes automatically stopped.
Removal of higher currency denominations will immediately stop a lot of national problems which include :
1 Black Money
3 Fake currency
Currently how the total Indian currency is divided?
1. Rs.100 Notes = 23%
2. Rs.500 notes = 44%
3. Rs.1000 notes = 24%
Notes of 100,500 and 1000 Rs. account for 93% of the Total Currency Money.
Fake currency notes are also found only in the currency notes of Rs.500 and Rs. 1000.
As per media reports currently fake currency in circulation in India is more than Rs 1,69,000 to 200,000 Crore
Please know that Reserve Bank of India has no power to ban the currency notes of 500 and 1000.
India has decided to end the use of Rs500 and Rs1,000 currency notes, which are in use currently, from Nov. 09.
Let’s see this situation from the eyes of a corrupt person.
There is a guy, Bunny. Bunny is corrupt and has a lot of black money. Let’s say he has about 10 crores. Now he can not store this money in banks. (Banks ask for income source, tax and other issues)
So to store his money safely Bunny creates some secret lockers behind walls of his house.
But 10 crores is massive ammont. He can’t manage this money in small currency notes. So he converts his money into 1000 rupees notes and then keeps it safe in his secret lockers.
Bunny is happy. He can do corruption. Can safeguard his money. And Government had not a single clue about his activities because there are lots of bunnies out there. Government can’t keep a close eye on every one of them.
So, bunny has 100,000,000 rupees. That is100,000 notes of 1000 rupees.
Now comes the TWIST in bunny’s life.
Government demonitizes all 1000 and 500 rupee notes.
Bunny has a big problem. His all money worths zero now. He must exchange his 1000 rupees notes with smaller currency notes which he can’t because for exchanging money, he must give a proof about source of 10 crore rupees.
What if, Bunny burns all his money and again acquires black money, but this time in 10 and 100 rupee notes. Naturally it will become harder for him to store that money because he has five times more notes this time. Plus more notes means it becomes harder to use them.
Demonitizing 1000 and 500 rupee notes can be very effective in reducing general corruption in the country which will lead to prize drops of goods and services ultimately.
Also this will also affect bribe problems. Just think about giving someone 1 crore in 100 rupee notes only. One will have to use a mini truck at least.