The unsung rewards of Indian Demonetization

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Democratic India had one of their crucial overhauling in the financial system, recently. A mixed review from the public couldn’t yet find a bold bottom-line. But the fact verse we hear from around the nation listens to a triumph of victory in piling up the black money back to the economy. The controversies, in reality, was simply some dark hesitation let go by media and the drama lovers. Even when some makes outstanding claims displaying evidence to call the demonetization a blunter, everybody forgets the fact that ‘no pain no gain’! It might take a while to enjoy the juice from ripened fruit, but we Indians are barely ready to wait & see the ripened results. Let us run down some long term perks that demonetization might shower in future.

  1. A country with no money to break chaos out: Black money is what fueling the chaos and terrorism in our society. With no unaccounted money in the bad pockets, what could one do rather than enjoying the warmth of a developed country? Most probably terrorism, corruption, intentional violence, political adhocracy etc. would remain in the paper for our future generation!

 

  1. Next generation banking: Might sound needless, but this demonetization proved how important it was to hold a bank account and acquaint next generation banking. This would help the money stay in the economy rather going underground. Yes, many would say it ain’t safe, but what else is safe?

 

  1. Changing taxation process: At present, you need to take initiative to pay tax to Income Tax Department. If you don’t, probably officers might have to worry you sometimes. But in future, there will be a change in the strategy, rather than collecting tax on the basis of the net worth or income, ITD will charge taxes for transactions that happen through your bank accounts, which is a more stable, transparent and ingenious way to collect the tax, provided everyone hold an account. This will be much lower than the current tax rates, as well as easy and won’t pull your hair !

 

  1. No fake money: Guess what? When people turn to e-banking then there is no paper currency in hand. So why should we bother about counterfeit notes and headaches? All e-transactions are easily trackable and any unaccounted deposits or transfers are easily spotted and inquired. Moreover, the printing and maintenance costs shall be effectively used for development. No fake money- no chaos, means a happy India!

 

  1. Implementing the impossible: If we run through election manifestos of so far ruled political parties, ‘Fight Against Corruption’ will be decorated all over the agendas. Until now, it was all a bogus claim added as per tradition, but now things are different. The nation is acting what it was once thought to be an impossible task. When the impossible happens, the filthy corruption lovers might cut loose the obnoxious thoughts into society, but it doesn’t stand a chance against the action happened here because it is truth & it always wins!

 

  1. No more political drama: Have anyone wondered how the political campaigns and demonstration workout? They greatly depend on funds from sources that are deemed to be black money. The unaccounted money flow happens during the election period, which almost cross 50 fold the actual limit set by the election Demonetization arrested the cash flow which prevents this money from leaving the country nor entering, which ultimately would rest in the RBI vault someday soon!

 

  1. The value of rupee restored: Previously India faced threats from many terrorists’ groups, which are being supported by these black money and counterfeit currency hubs. When the counterfeit notes waved into the economy it created financial awkwardness allowing hysterical financial power contributing to instability. The strategy kept the poor-poorer and rich-richer. Now things are about to change because the money will diffuse from top tier to even the lowest level, establishing the true meaning of democracy and economic equality.

 

  1. Contribution to GDP: One of the strangest facts is that 50% of India’s total GDP never make it to the foreground, meaning that only rest half of the total GDP pays tax and move legally. This half percentage contributes to the bulk of the black money that is limited to less than 27% of pockets in India. Now, these illegal productions need to come into daylight since new cash flow system is under surveillance and easily tracked.

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