While I was out for dinner with my friends a couple of days back, my mobile started ringing with constant message and Whatsapp notifications. The pace of messages was indeed alarming for me to make a quick check on what had really happened. I could read just a couple of notifications and all were providing the same information that the high denomination notes of Rs. 500/1,000 will cease to be legally acceptable currency from 9/11 – 9th November, 2016. Since this news affected everyone in the group in one way or the other, it was the only thing on our agenda now. Being the only finance professional among the group, the eyes were indeed all on me to help them with the rationale of such a move by the Govt. By the way, the finance professional within me loves such attention. So, I was all into the teaching mode.
The Govt. has effectively made existing Rs. 500/ Rs. 1,000 notes non-eligible for any market transactions with almost immediate effect and the only place they can be exchanged for similar value is at banks and post offices. This move has been termed as a master stroke by the Govt. and aims at killing multiple birds with the same stones like curbing black money hoarding, stopping circulation of counterfeit notes, putting brakes on money laundering and terror funding etc.
This move impacts rich and poor, though may be in different proportions but still it impacts each one of us. A live example of this was clearly visible when we saw large queues outside the bank premises even before the banks had opened.
Here’s my comprehensive article published on MoneyView on how this move impacts us in daily lives, how it impacts the economy and what is the course of action to be followed now:
The move gets implemented on 9th November and similar to 9/11 attacks on US which led them to take action against terrorism, this is 9/11 moment for the country. It’s now time to apply fairness cream to the black money and make it all white and circulating. Despite the inconveniences, we must support this move as it is beneficial for our economy. Let me term it as ‘short term pain, but long-term gain.’
Do share your views on this.