Is Modi Ji’s Movement Of Demonetization Towards Failure?
The demonetization of 500 and 1,000 rupee banknotes was a policy enacted by the Government of India on 8 November 2016, ceasing the usage of all 500 and 1,000 banknotes of the Mahatma Gandhi Series as legal tender in India after on and after 9 November 2016. The announcement was made by the Prime Minister of India Narendra Modi in a live telecast addressed at 20:15 (IST) on 8 November.
In the announcement, Modi declared that use of all 500 and 1,000 rupee bank notes of the Mahatma Gandhi Series would be invalid after midnight of that day, and declared the issuance of new Rs. 500 and 2,000 banknotes of the Mahatma Gandhi New Series in exchange for the old banknotes. He declared that there will be no note of 1,000 rupee from now on. However, the banknote and coin of 100, 50, 20, 10, 5, 2 and 1 remained legal tender and were unaffected by the policy. The government claimed that the demonetization was an effort to break counterfeiting of the current banknotes allegedly used for funding for terrorism, as well as to control black money from the country and to ban the usage of fake currency.
Modi ji movement was for the welfare of the country but it affected the minority and the poor people a lot. Rich and influential were able to cope up with the ban on 500 and 1,000 rupee notes. Barter economies reportedly sprung up in many towns as well as villages. Banks have limited the amount that can be withdrawn. Scores of weddings have been called off. Indian stocks plunged below their 200-day moving average. ATM’s are scarce, and few rural Indians have a credit or debit card. An estimated 600 million Indians—almost half the country’s population—are without a bank account. Three hundred million don’t have any government identification, necessary to open an account. People are facing problems because the limit of withdrawal has not been kept at a higher level. If this would have been kept at a higher level, there were probabilities that the recycling of black money might begin.
Across India, most of the ATM’s are either closed or had the sign of ‘No Cash’ outside. Huge number of senior citizens were among those standing in long queues outside banks. While many ATM’s remained closed, most of the ATM’s which were open ran out of cash within hours, leading to long queues outside banks. But hundreds of people who skipped work to stand in the queues were left stranded as bank ex-officials came out and announced there was no cash. People had no money to buy food and the necessary belongings. Many people died while waiting in the long queues or due to the unbearable shock. Demonetization affected the farmers, they don’t have money to cultivate crops.
So, demonetization is a big failure for the poor and the minority people as they are starving for food and other necessary items.