PM seeks views of people on demonetisation

“Prime Minister wants to have real swacch bharat”.

On that day, amid uncertainty over ATMs being able to disburse large quantities of Rs 100 notes, Finance Secretary Ashok Lavasa said new notes of Rs 500 and Rs 2,000 value will be available only from November 11.

What do you think of government’s move of banning old Rs 500 and Rs 1000 notes?

Warning of a gloomy economic situation, he said that demonetization would hit the poor more than the rich because 90% of the poor’s liquidity is in cash.

Customers lined up outside jewellery stores in Delhi and Mumbai with bags of cash with one report saying they paid as much as 52,000 rupees ($762) per 10 grams of gold, nearly double the going rate.

The government has formed special teams to assess the transactions of jewellery shops across the country.

People, more particularly in medical emergencies, faced enormous cash problems despite Modi’s initial 72-hour respite asking hospitals to accept the now scrapped notes until November 11 midnight. Many people invested but because of the blessings of politicians their money vanished.

What will the banks do with the money that has come in just ten days, he asked. Chandubhai Kothia, head of chemicals company Shree Ganesh Chemicals in Gujarat, with an annual turnover of 1 billion rupees, said a newly imposed 50,000 rupee cash withdrawal limit per week for some businesses that came in as part of the measures was simply not enough.

Long queues outside banks and ATMs have now become a regular sight since the announcement, sometimes causing deaths of a few senior citizens.

Prime Minister of India Narendra Modi. But it’s unlikely to achieve much – and ultimately, it’s at least as much a political move as it is an economic one.

“But today you have seen the position, some people are not able to sleep or weep also publicly because they have lot of unaccounted money, so cleaning of India is going on”, he commented. This is an attack on what Indians call “black money”, cash that has been concealed from the tax authorities and/or used for criminal activity; it’s also meant to curb the spread of counterfeit currency.

‘The entire country is mourning due to the the accident and the government is with the family of the deceased and injured.

The tax amnesty scheme raised over $NZD10 billion.

The black market’s grip on the political process will also be lessened, with huge cash funds held by many politicians now open to scrutiny.

Nonetheless, even replacing them has benefits similar to entirely eliminating large denomination notes. There is little chance of that. The shocking decision dealt a massive blow to the heavily cash- dependent Indian economy crippling multiple sectors.

He met with Chief Minister K Chandrasekhar Rao over the weekend to discuss solutions to the current crisis. For 70 years, the poor and the lower and middle classes suffered and have been exploited by black money, corruption and terrorism. “The manner in which they announced the banning of high denomination notes without being fully prepared shows that this step has been taken in the wake of upcoming elections”, said Mayawati.