Rs. 500 and Rs 1000 notes scrapped: the black money crackdown news is an avalanche of a news.
Gosh! Rs. 500 and Rs. 1000 notes not legal tender any more!
I shiver as I write this post. Why? Because I am camping downhill the path of the snowball? Because I am a global aggregator of black money? Nope. It’s because I wonder what’s available in India that’s worth less than 500? Rs 500 and Rs. 1000 notes are like denominations of Rs. 50 and Rs. 100 of our yesteryears! You can’t just do without them. They are your wallet’s best friends!
As per a recent Mint report, the large value notes – those which are greater than 100 – Rs. 500 and Rs. 1000 – constitute for more than 84% of the money in circulation in the country.
This only confirms the issue I’m highlighting. There simply aren’t enough wads of Rs. 100 to replace the 500 and 1000 denominations.
There was another demonetization of the currency earlier in 1978. Rs. 1000 notes were suddenly considered not a legal tender. They simply stood cancelled one night. Just like that. No time given! That was during the time of Prime Minister Morarji Desai. Lot of black money was wiped out. It’s said that folks in Surat ate dhoklas and khamans the next day on Rs. 1000 notes! Tissue paper value. And that’s completely true!
But what about it?
Did that stem corruption, bribery and black money? Did that wipe out the (not really) hidden black undercurrent of the economy? Babus just changed their instruments, twice aggressive as earlier, as they had to cover up for their losses. Babudom and Corruption thrived like never before.
This time the babus & the corrupt would lose a little, probably, for there’s time till Dec 30th. But what would stop the babus from continuing their practices with newer, crisper notes? What would make them change their behaviour? What would it take to bring about ‘integrity’ in this country?
As an aside, I think the traffic cops are the smartest of the bunch… Rs. 50 and Rs. 100!
Rs. 500 and Rs. 1000 notes demonetization, crackdown, is welcome, certainly. We are going to have the new notes now – the more secure and colourful Rs.500 and Rs. 2000.
But I can only hope the Government would introduce tracking methods and stringent punishment so that the newer notes don’t become another set of crisper tools for the fiefdoms and arrogance of those in authority and power.
A daring move. A move, much like the exploits in Operation Jai Mata Di.