Impact of Demonetization

On the mid night of 8th November in India, demonetization of big currency ?500 and ?1000 banknotes started with some reliefs. Mostly People termed 8th November as the death date of big currency notes. With certain exemptions in place we may say that on 8th November these currency notes were admitted in Intensive Care Unit (ICU) and their death date is decided as 30th December 2016. 

Social media is flooded with new jokes, anger and praise for it. Media has thrown out the breaking news of JNU student, Chickenguniya, Delhi being Gas Chamber, border firing etc. in the dust bins. 

Mr. Prime Minister after igniting the spark went overseas for doing some more good works for country. People are discussing the pros and cons of it. Debate is splitting into two groups i.e For and Against it. There is no doubt prima facie it appears that for black marketers it is the worst news and for honest tax payers it is the best one.

In last few days many articles are written about financial impact of same. But if we try to analyze this in broader terms or doing the postmortem of same, it will affect each and every field of life. My take is that in longer terms it has given and would impact on following spheres of life.

Spiritual 

By default this sudden change has given following lessons to learn.

- Wealth is Momentary & Fragile

One may have millions of Rupees in 500 and 1,000 denomination - but if they are illegitimate wealth, today they are just pieces of paper!

Similarly, all worldly gains - money, wealth, fame, power - not just high currency - will all be worthless for humans after death. 

- Only Legitimate Money Will Remain With You

The legitimate money lying in banks and deposited hereafter in banks, only can be used by you thereafter. Illegitimate money will destroy your peace now and even after the fear of tax authorities will destroy your peace.

Similarly only Good Karmas will reward you always here and after the death. Your bad karmas will not only bother you in this life even after the death.

- Banking Has Got Time Limits

As now on 9th November there was complete bank holidays and closure of ATMs. Which means you could not go to bank for deposit any money legitimate or illegitimate. 

Similarly once your Holy Soul leaves your body, complete bank holidays are declared for you. You won't be able to deposit any Good Karmas in to your account further. After death only your already deposited Karmas will be with you getting you rewards or punishment. So Better start doing Good Karmas at once without waiting for closure of your life account.

- Small is Big

Persons with 50/- 100/- or smaller denominated rupee notes are today richer that the a person with thousand or 500 rupee notes.

Take small and right steps in your life to get permanent success and peace of mind. Big deeds to achieve big goals may bring arrogance and cheating by default. 

The real wealth are the small, quiet, hidden, good Karmas done with sincerity without any showoffs. 

- Death is Sudden

Four hours time was given to black money to die its won death. Nobody saw this death of currency coming or was prepared for its last journey.

Similarly our death is for sure to happen, which is ultimate goal of this birth. But we are not sure when, where and how death will come. And it will come even more stealthily than this.

We had four hours advance notice for this with a Fifty days rider to save the death of legitimate currency. But in human death no notice of even four seconds will be given

So prepare yourself for the ultimate goal of Holy Soul of leaving our body.

- Fakes Will Not Last

PM said that one of the purposes of the action is to deal with fake currency. After this, all fake notes will be out of the system. 

Similarly fake Karmas of humans like doing charity for showoff/ business or with ill motives or doing fake love with others or showing fake respect to elders, will not add any good Karmas in your account. Fake will not last in your accounts.

- Plan Your Goal Well In Advance

A lot of people are busy worrying and planning what they may do with the illegitimate currency now. It is too late now.

Similarly people working without planning face same panic when got struck by sudden changes or losses.

Before repenting it again plan your goals right now with good intention, sincere devotion and proper actions. This will guide you to plan and do Good Karmas only.

- Legitimate Source Matters

For every currency note now its source would be asked like asking for identity proof/Pan number and Source of Income

Similarly GOD will check the source and intentions of each and every Karmas of humans. Even if for charity done: was it from proper ethical business or profited after looting innocent persons? That is doing philanthropy for business or with ill wealth will not add into your good Karmas. Rather it may add into your bad Karma. Like in recent examples depositing illegitimate currency in your servants etc. account is not going to get you good Karma reward in GOD's books.

- Excess is Stinky & Poisonous 

One who have stored loads and loads of money must be now smelling it stinky. They are now trying to get rid of and change old currency in any way. If they are not able to do it and get caught in tax net, they would find this currency as poisonous too. 

Similarly excess of everything is bad. Money should be treated like water. You may have your share of water and let the balance water flow in river for usage of others. If one go on storing extra water in lockers it will become stinky for no use to others. 

- Be Contended 

Lesser cash flow in few days have forced people to learn in living a simple life without extra ordinary expenses. People have understood that with spending on costly food, unnecessary shopping did give them a fake comfort but now 

Similarly living a fake life with bad Karmas gives you stress and living contended life gives you real comfort and peace.

- Truth Wins Always in End

People with legitimate cash is speeding happily without any stress. Their being true in declaring wealth and filing true returns has given a winning edge now.

Similarly one might enjoy short term with the ill wealth created by doing bad karmas. But ultimately people following the path of truth with good karmas are at peace.

Innovation

Centuries back, Plato said “Necessity is the mother of invention.” which stands still true. Now we may even add it that " Panic is the mother of Innovation"

ndians are supposed to be best in mathematics and manipulations. The time it was announced at 8PM on 8th November. The wicked mind started working in some innovative ideas. Some of which have been a windfall for many, known from media and other sources are:

- Investing in Gold

Jewelers started selling Gold bars and ornaments at premium which started from five hundred per grams and said to gone up as high as two thousand rupees per gram. So a whopping profit ranging from twenty percent to eighty percent. There may be another catch that jewelers may have sold them the impure gold, which is again the extra profit for them and panic ill wealth customers won't be even able to complaint.

- Investing in Forex

Forex exchange dealers minted money within hours may be by an extra ordinary margin ranging from twenty five to sixty percent. US Dollars and British Pounds were in demand like buying of milk. Black marketers converted their old currency notes at premium with US Dollars and British Pounds. Which will be a tradable commodity after the so called death of 500/- and 1000/- rupee notes.

- Outsourcing

There is a blessing in disguise to for people of Below Poverty Line (BPL) possessing Aadhaar Cards. Daily labors having are charging four hundred rupees for getting exchanged four thousand rupees by standing in queue spending 3-4 hours of time. Otherwise they have to sweat it out for nine hours to earn three hundred rupees and even than daily job is not guaranteed.

- Begging to Beggars

It has been seen that beggars on red lights are exchanging 4x100/- notes against one 500/- note. So a whopping profit of 25% in a fraction of moment.

- Sharing ILL Wealth

It is being circulated in social media that some people have deposited lakhs of cash rupees in their workers, servants, maids accounts. With all this knowledge in masses it is for sure that if not full at least those depositors will surely get some cuts for that money. So they would be getting little rich by default.

- Buying Good Karmas

People started visiting religious temples and shrines for donating hundred to two hundred rupees by giving a five hundred rupees and taking change of three to four hundred rupees back.

- Using Loopholes

For convenience of people it was declared that old currency notes can be used for buying railway and air tickets. See the innovative consumers they booked tickets in bulk by using old notes and planned to take refunds after introduction of new notes in circulation.

- Forced Philanthropy

For public convenience vegetable vendors like Mother Diary is taking old currency notes. See the level of thinking people bought vegetables in bulk and started distributing it for charity. This may be a forced philanthropy. 

Political

Politically it may be said that it is well targeted move. With elections in five states on the way this may prove to be a big blow to the corrupt politicians. They may not buy votes by giving money and liquor. Both needs black money which is going to be short in supply. Even if they start giving old currency notes right now to electorates for depositing in their accounts. This money will be gone in air with the times. At the time of election voters will again demand money for booze and all.

This move of demonetization will have a major impact on political scenes. Elections being the mother of corruptions. First politicians spend money to buy votes and win elections. Politics is mere a business for these type of politicians. Their only agenda becomes to recover the money spent and multiply profits by any means. For which they enter in to all type of corruptions which is definitely a hindrance to the development of country and countrymen. 

- Filtration of Politicians

Buisness minded politicians will no more would be interested in politics. This would filter the process and give an entry to dedicated and honest politicians in arena. 

- Start of Elimination of Corruption

Now with blow of ending corruption in initial stage of buying votes or at least minimizing it in coming elections may elect the right candidates. This will end up in restricting further corruption stages in the system.

- Electoral Reforms

Election commission who had to run from pillar to post for seizing cash for buying votes. In some instances politicians had even over smarted the Election commission by falsely declaring the seized cash meant for feeding ATMs. With no black money in circulation, he long pending process of electoral reforms would be in place.

- Competent Leaders 

The most powerful impact would be with corruption free elections, people would vote freely for deserving competent candidates and right political parties. 

- Rise of India

India being a dynamic democratic country with powerful voters and strong consumer base is in the centre stage of universe. With right kind of politicians elected our India would become politically and most powerful country in the international arena. 

Social

It is said as on 28 October 2016 the total currency in circulation in India was ?17.77 lakh crore (US$260 billion). In terms of value, the annual report of Reserve Bank of India of 31 March 2016 stated that total bank notes in circulation valued to ?16.42 lakh crore (US$240 billion) of which nearly 86% (around ?14.18 lakh crore (US$210 billion)) was ?500 and ?1000 banknotes. 

- Profit For RBI

With a rough estimate about fifty to sixty percent notes may get back in banks for conversion. So even with 40 to 50 percent currency eroding of about seven lakhs thousand crores rupee would be a wind fall profit for Reserve Bank of India.

- Early Execution of Social Projects

Reserve Bank of India in turn would pass on the profits to the Government of India as dividend. This extra revenue generated by Government may be utilized for Infrastructure, Education, Housing and other social projects. 

- Cash Liquidity

Eleven Lakhs worth of currency notes would be pumped out into bank accounts increasing the cash liquidity of banks. With this boom we may expect a sizable downfall in home loan rates.

- Affordable Housing

First of all social impact will be that home buying will become a buyers market with reasonable prices and better interest rates. Suppose the home rate becomes in the range of five percent per annum. After availing home loan interest tax rates benefits housing would become affordable for masses. After owning homes our youth would become more secure, confident and stress free.

- Education in Reach of Masses

Black money curbing would put a stop on the admission capitation fees in professional colleges. Education at lower schools will also become better and affordable. It would make medical, engineering and other professional education affordable for all. 

- Downtrend of Overall Prices

Less investment in studies would make lesser need of return on investments like doctors. medical cost would become cheaper. Lesser engineering cost would make infrastructural cost economical. Further this move would erode corruption step by step. Less or No corruption would further decrease projects cost. 

- Fearless Society

This would give a large scale boost for developing social India. If the youth of India will live in a society fearlessly, secured and stress free. They would work whole heartedly with full brains for developing our society.

- Patience

Earlier people used to stand in queue may be at a religious shrine, concert, movie or ration line. There used to be irritation and regular fights in those queues. Standing in queue at ATMs, Post Offices and Banks are so far reported as peaceful. People are appreciating the banking staff too. All this has by default made people to learn the law of patience. Now everyone is standing in queues for hours with patience. This has increased the patience level in the society.

- Religious Harmony & Increase of Humanity

People standing patiently collectively in long queues are of all religions of different money slabs. This has improved the social communications among the masses. At number of places the people without bothering about any religion are supporting others in filling forms, serving water, tea and snacks. This has increased the humanity in the community.

- Terror Free Society

Erosion of fake currency and black money from the society is a first major step to fight menace of terrorism. A small example is since this announcement no untoward incident has been reported from the valley. 

....

System Change

This bold step of Demonetization would alone not be sufficient to erode the menaces of black money and corruption. There is a further and utmost need from Government of abolishing all type of multiple taxes step by step. There should be bare minimum and only one tax which should be levied on each and every transaction. 

To erode crimes from society the best start would be wiping of corruptions from all spheres of life and changing obsolete criminal laws. 

System fails when people with Ability don't wish to Change the System and people with Authority don't have ability to run the System

It is easier to make system and more easy to break/tilt the system BUT most difficult to change the system.

Now this is golden chance when People with Authority have ability and are willing to change the system. Now it is the turn of citizens to be a part of supporting the legitimate changes for making a best crime free society.

Without support of citizens nothing can be changed. Just by criticizing the society, government, people and own luck etc. will not help us. Be patient, calm, support others, look for larger picture and never indulge in spreading rumors etc. etc. We will have to help ourselves.

If there is genuinely an issue, Identify the issue to be changed or amended. Never be self centered or looking for benefits only for your near and dears. Issue is not to be of the individual nature, it has to be which effects society as whole. Have a long term vision in identifying the issue.

Discuss the identified issue in large within Society between your networks and circles. Create awareness about the issue in society through social media and other sources. Focus on the issue. Postmortem the issue to get root causes and find why this issue has been cultivated.

Discuss with larger groups and find suggestions for overcoming that issue. Chalk out the number of suggestive solutions with priority list. Create awareness in society for the issues, its ripple effects and its solutions.

Adopt measures to suggest solutions to the decision makers. Keep on putting efforts and have patience for solution to happen.

Always be ready to amend further solutions for further betterment of solutions. Have patience in getting results, it takes less time to make system but it takes more time to change the system.

Hoping to see the positive change soon. Keep reading and smiling!!!!!!

? Pavan Datta

Disclaimer:

This is a work of fiction & providing general information. No persons used as characters in the story actually exist and any resemblance to persons, living or dead, Profession is purely coincidental. Persons, Professions, locality, area, organizations, companies or products listed in the story are for the purpose of story development only and no actual attitude toward or connection with such is to be inferred.

While trying everything to ensure accuracy, this information is purely indicative for making story and should not be used for any decision-making. The Author is not responsible for any damage or loss resulting from the use of the information presented in this post.

Grateful:

My Parents(My GOD & GODDESS)

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Friends and Associates

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Liverpool city council 

Assam University

So Now What

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Best Regards

Pavan Datta