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Response To Critics Of India’s Demonitization -OpEd

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1. Only 10% of people have black money, but 100% people are inconvenienced by demonetization.

Clarification:

It is not true that only 10% of people have black money. The black money is well spread among people in the upper and middle income group in various forms all over India. Every fellow who takes bribe is a black money holder. Every person who evades tax is a black money holder. Many people in the upper and middle income group are known to take bribe money or pay bribe money or evade tax or conceal real income to reduce tax. Black money among such people also need to be brought out.

2. The government has not planned properly

Clarification:

The Indian government has planned quite well and Mr. Modi announced that people have to bear with this for fifty days and it is a fifty day plan.

Several times, it has been explained that new currency printing exercise can start in a big way only after announcing demonetization to maintain secrecy.

The new currency is being released every day and the suffering of the people are reducing daily. This is clearly evident now.

The release of new currency notes should be completed in fifty days to a reasonably comfort level, when the sufferings of people will go away and in the process bring relief to see gradual success of movement towards less and less corruption.

It may be noted that there is no need to print around Rs.14.2 lakh crore of new currency notes, which was the amount withdrawn by demonetization. With the black money gone and more people getting into digital mode of payment, currency requirement will be less at least by 20%.

3. Estimation of black money and fake currency in circulation wrong

Clarification:

This was an estimate and nobody knows clearly the amount. Neither the government nor the critics. This will be clearly known only after fifty days.

4. Most of the black money is not in the form of cash, but real estate and gold. Why is Mr. Modi is targeting cash only?

Clarification:

Eliminating corruption in India has to be done in stages. When black money is curtailed and with the available black money with people becoming less and less, the value of real estate which is mostly done by black money will automatically come down. Black money holders will lose heavily. This is already happening.

Please await the implementation of measures to put down the benami land holdings. Spectacular results can be felt before long

5. Poor people and wage earners are suffering.

Clarification:

It is true that poor people have temporarily suffered in the initial thirty days. But, it is gratifying that many of them feel that there is need to initiate drastic steps to put down corruption and black money and they want demonetization to succeed. Poor people realise that they are the worst hit due to the widespread corruption in India. Those who interact with poor people know this.

Some politicians predicted that there would be riots on 1st December, the pay day. Even the learned judge who is supposed to know better made similar statement. Nothing of this sort has happened. When opposition parties called for nationwide bandh, it was a flop, reflecting the mood of the people including the deprived class.

The media is creating panic atmosphere, instead of explaining to the people about the issues in a responsible way. One cannot ignore the fact that considerable segment of Indian media is under the control of politicians and business men.

Appeal to the critics

People have been asking for firm steps to root out corruption for the last several decades. Possibly, all wanted that corruption should be eliminated in a painless manner.

The demonetization exercise is the least painful way of removing black money and putting down corruption firmly. Demonetisation inevitably lead to greater digital mode, which will do a lot of good to the cause of less corrupt India in the course of time.

If we lose this opportunity now to remove black money, the country will not be able to do it in the foreseeable future.

There is nothing wrong in one being a critic. But why not be a constructive critic?

So far, none of the critics who want black money to be removed but disagree with the demonetization measure, have suggested any better alternative plans.

Any slackening of demonetization measure will only satisfy the business men and the black money holders who are well spread throughout the country in various measures and remain powerful due to their black money power.

There is already an unholy trio of small section of bank staff, business men and chartered accountants, who have managed to take out millions of rupees of new currency notes to hoard them, by using their evil genius. Anti-corruption crusaders should help the government by pointing out such unholy trio. Let the critics become anti corruption activists and help the cause.


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N. S. Venkataraman

N. S. Venkataraman

N. S. Venkataraman is a trustee with the "Nandini Voice for the Deprived," a not-for-profit organization that aims to highlight the problems of downtrodden and deprived people and support their cause. To promote probity and ethical values in private and public life and to deliberate on socio-economic issues in a dispassionate and objective manner.

7 thoughts on “Response To Critics Of India’s Demonitization -OpEd

  • December 10, 2016 at 11:06 am
    Permalink

    The simple question in India is where to save?The rate of inflation is almost three times the rate of interest on Fixed Deposits.Inflation also cuts the capital value of the Fixed Deposit.In fact a Fixed Deposit loses all value totally becoming a mere scrap of paper.
    AND THAT FAKE INCOME INTEREST ON FIXED DEPOSIT IS ADDED TO THE TAXABLE INCOME.a A RESULT OTHER INCOMES LIKE SALARIES,PENSIONS ETC ARE OVER TAXED BECAUSE THE ADDITION OF THE FAKE INCOME BLOATS THE TAXABLE INCOME.The other avenue of saving is gambling in the stock market directly or via Mutual Funds.
    There is just no alternative except participate in the black money economy.
    THE MOST URGENT STEP IS REMOVAL OF INTEREST ON FIXED DEPOSITS FROM THE TAXABLE INCOME.
    YM

    Reply
  • December 11, 2016 at 5:28 am
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    Dear NSV,
    I fully endorse whatever you have stated; It is now or never; This is perhaps the first major step – needs to be followed up with many more; Binami transactions and large cash flows through banks need to be scrutinised carefully. The poor do often suffer – it is an undeniable fact; but then it is because they are either ignorant of what is happening around and the steps to be followed by them or because they are lured or threatened to fall in line and be accomplices to the corrupt and the greedy. Of course incentives to the honest through different mechanisms would be welcome. Panicker

    Reply
  • December 13, 2016 at 7:29 am
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    But, demonetization has nothing to do with reducint corruption in the bureaucracy. No bureaucrats has disclosed any income till date. Again the corruption in the system is much more than known by most of us. No work moves on any table without bribe. The need to check/improve system is foremost needed before all other steps as the schemes are getting executed only through them. If they continue to behave similar, there is a possibility of repetition of what happened in the demonetization.

    Reply
  • December 13, 2016 at 7:34 am
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    Sir
    All the sufferings are requested/ forced on the common man
    What is the action on the marriage conducted by rich and mighty politicians close to Modi?
    There is one rule ask/ force common man to suffer protect turn blind eye to Politicians and all these politicians are united in this aspect across parties

    Reply
  • December 13, 2016 at 12:03 pm
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    Overall the Indians are capable of sacrificing in the short term for future lasting benefits. It is dinned into our psyche through age old scriptures to forego short term gains for lasting happiness. So it should come as no surprise that the common man is able to take the discomforts of Demonetization while the corrupt find every little reason to complain. Modi’s brave move must be backed solidly by the Indian public and the whole nation will gain respect in the global scene as an exemplary moral leader. Time to gain our stature back by noble means. More power to Modi!

    Reply
  • December 13, 2016 at 3:07 pm
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    Well said Thumbi. It was time somebody made the start to suck out like a snake venom in Indias body which was making our country toxic. Indians are not for revolutions unlike some other countries to address a problem eating away our economy and soul.Indians by nature are lazy at one end and spiritual at the other end which is a paradoxical persona. In a revolution there will be blood shed where as in a move like demonetisation the upheavals are less life threatening. we will get through this however more measures are needed to rid the country of corrupt wealth stashed away in other countries and as gold and real estate.
    good luck.
    Vandemataram
    prasad

    Reply
  • December 13, 2016 at 5:27 pm
    Permalink

    Very useful repost from the author of the unwarranted criticism floating around. The fact that a couple of comments above are asking the same questions despite the answer being given in the article itself points to the short-sightedness of some people. Demonetisation is most definitely the greatest clean-up act undertaken in India since its independence. It is historical, and I do hope it succeeds in stunting the exponential growth of corruption in all levels of Indian society.
    .

    Reply

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