Sunday, January 22, 2017

DEMONETISATION IS A SPLENDID STEP

By generating fear among some people, the demonetisation move by Prime Minister Narendra Modi has opened opportunities for others, writer Ashwin Sanghi said today. "When there is a fear there are opportunities. Demonetisation has created a fear among few people and on the other hand opened opportunities for others," Sanghi said at a session at the ongoing Jaipur Literature Festival here. He was joined by businessman Binod Chaudhury, writer and journalist Hindol Sengupta and Suhel Seth. According to Sengupta, the "pain" that has come along with demonetisation has been "worth it", and that the move was a step forward towards a better economy. "There has been pain and it is worth it. Despite the sufferings, there has not been a single real mass protest happened on roads. The NCR economy is entirely sustaining on black money. Government's next step to nail 'benami' property will be another move towards better economy," he said. Calling himself a "deep advocate" of demonetisation, Suhel Seth termed it a "splendid" step, predicting that India will be the "fastest economy" in the coming future. "I am deep advocate of demonetisation taken by the government. We need to root out black money from the system and it is a splendid move. "International Monetary Fund projection for Indian economy is rubbish and we will be be the fastest economy in coming future," he said. He said that while the working class may be in "short-term pain" but gains would be manifold in long-term. "The move will yield results in next two quarters," he said. Questioning the timing of announcing the decision to demonetise Rs 500 and Rs 1,000 notes, and whether the Reserve Bank of India was prepared for the repurcussions, Binod Chaudhury, said that the aftermath of the move will last longer than projected, but assured that "India will have a bright future". "Demonetisation was needed at some point of time. But, whether it was the right time and was RBI prepared to tackle the eventualities is a question. "Currently 50 per cent of Indians have access to banks and post offices so demonetisation has troubled many people. Pain of the step will be a bit longer than projected. However, India will have bright future," the Nepalese businessman said.
NO FAKE CURRENCY IN THE SYSTEM AFTER DEMONETISATION
Anil Bokil, founder of Pune-based think tank ArthaKranti, who was part of the team that claims to have suggested demonetisation to the government today said "no fake currency is in circulation in the system" after the note ban. "The whole thing is now transparent. One more serious thing is that there is no consideration of fake currency. Another thing what banks have received is white money. So the whole purpose for the exercise is yet to be ascertained and some time is required to examine and after that only we can say," Bokil said in an interactive session organised by Junior Chamber International (JCI) in Hyderabad. During his presentation he suggested that there should not be any note with denomination higher than Rs 50. He said the main reason for banning currency notes with high value denomination is that the notes were not serving the intended purpose but had turned into a hoardable commodity. "There are three main reasons for note ban. One is the currency note has not become medium. Second is the currency notes are not sustainable and the third is it has become source for counterfeit notes," he said. He further said that in cash transactions, there is no trail and it is unaccountable whereas in digital payments are transparent and traceable.

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