Why demonetization by the PM of India initiated so suddenly?

Dear Friends as you all are aware by now at this LinkedIn portal that I belong to a common man category in India as a working professional and write my blogs not with a biased opinion but as my thoughts pouring in at the time & as I feel an urge strongly about an issue honestly, that confronts the country and the common man & poor of this nation. I have written a lot about Modi ji in past 02 years and that had been a most rewarding experience of my life and I draw immense pleasure out of it and lot of satisfaction writing again this blog about him and his bold action. As you all witnessed that PM of India Shri N Modi took a historic & the boldest step of his political life so far that too with an element of complete surprise addressing the nation at 08 PM on 08 Nov 16, when he declared on national TV channels that INR 500 & 100 notes(legal tenders) have been withdrawn from the circulation w.e.f 1200 hrs in night today. As a result of the same the people (Indians in India & abroad as well other nationals) had so many questions in their fertile minds that why it has been done & that too so suddenly and these were indeed the relevant ones ? So, I am putting down the explanation & reasoning in my reply to such questions serially exclusively as per my views on the subject though the vision of Modi ji cant be fathomed as he has a grand vision and totally dedicated 24x7 and every moment only for one aim, how the country, India could be taken to a place which it deserved a long back after the independence by over coming the gaps ASAP as it needs a metaphors:

Why it was done & so suddenly: 1. The Black Money circulation in the market and very high level of rampant corruption as a result of poor & unaccountable governance of one party in last 60 years in the country had reached to such a proportional( as it (GOI then for so long) favored corruption out-rightly through its framing of policies accordingly during this period) that it had destroyed the entire economic & social fabric of the nation which was based on solid foundation of ethics,honesty, and an equality & development for all. So, it was the main reason that PM has to take this most important decision ever initiated by any PM of this great nation and making it as a game changer in the chain of several such initiatives under a strategic plan those I suppose shall be executed in times ahead in order to contain Black Money & to have a complete control on corruption and finally the eradication of both from India for ever by 2020. It was kept top secret by the PM's personal intervention I suppose and it was taken with an element of surprise so that its effect could create the maximum impact on the targets aimed.If we take India GDP of the order of about $ 02.3 Trillion in 2014-15 and as assumed by me & calculated that Black Money has a parallel economy in India of the same size, though some say it is about 30 % & other say 60 % of GDP. So, if I take a very pragmatic figure of total Black Money at about $ 160 to $ 280 Billion and I also understand that a major chunk was stoked out side India and some part of it has definitely routed in to the country via Tax Haven Countries in the form of P-Notes & invested in stocks. Also, it might have seeped inside the country through Hawala (Hundi's) route in exchange of foreign currency along and that might have been invested in buying the Benami Properties, assets, Bullion & gold. Black Money kept outside in Swiss Banks also has come inside the country through Tax Haven Countries in the form of FDI's and it has been mainly invested in Real State, stocks and purchase of gold.

India had about 16.4 lakh crore worth cash in circulation as on 08 Nov 16 and half of it as assumed was to be in the form of black money. The currency about 14.60 lakh crore was in the denomination of INR 500 & 1000 notes out of this total cash in circulation.So, it was necessary to bring in demonetization of these currency notes immediately as a first step with out loosing much on time and that too with an ultimate surprise to create desired effect. This GOI under Modi ji took various other necessary steps in this direction in last 29 months prior to it to come to this stage which is available in the public domain on media now. It is a fact that large part of Black Money is still outside the country invested in real state / properties / assets or put in the banks there or in the businesses in tax havens. It is also there with in the country, in the form of Benami Properties & Gold Stocked in multiple lockers or as hidden inside houses and in bullion. The black money was taken away from the system(tax`payer money available with GOI) as part of an deliberate intention of collective corruption carried out by one & all in a syndicate (A syndicate comprised of corrupt politicians, bureaucrats, government employees, CA's / Lawyer's Firms / Financial Consultancy Firms, Directors & Independent Directors on board companies in connivance with the business houses / promoters ) over the years as part of totally corrupt system existed in the country for a such a long time (67 years before this government ) which literally failed to protect the rights of common man, farmers and the poor of the country as it was done knowingly with an intention of doing it by making policies in support of this open loot in the form of siphoning the money from the government projects as part of corruption, from welfare schemes and as part of loans taken from the Public Sector Banks with out credit worthiness. It is the reason that gap between poor & rich increased and the condition & income of poor & farmers could not improve in last 67 years. So, some thing totally candid / ultimate in arresting this trend was needed to be done immediately,hence, the PM did it as he promised it to the Nation and its people during the campaign of parliamentary elections held in 2014 before becoming the PM. The people voted him to the power and they are supporting him out-rightly in this move also and in fact his popularity has gone up more than 95% now among the people of the country after this initiative.It shall remain the same as more such initiatives are on the anvil. There is indeed a danger now to his life as he brought it out also in his speech at Goa recently after returning from Japan as corrupts of this country have long hands with mafias & hard core criminal and the terrorist groups world over. I would like to assure him(Our PM of India) as I am convinced by heart that no one can dare to think of it or even touch him as the people of India in side the country and on this planet else where are with him in their prayers to the God 24 x 7 wishing for his long life as he is such a pure mind that has to do a lot more for this nation. Our Armed Forces & National Security Guards & special forces commandos are capable to protect him and we have a very competent NSA & Armed Forces Chiefs, MHA with the support of competent Ministers, Intelligence Agencies and para-military forces to provide the required coverage for his safety in all eventualities. Still, the concerned people in his security have to be more alert as he is indeed at present the most precious & beloved person for 125 billion Indians and we cant afford to loose him. So, I am sure that the corrupts cant succeed in their nefarious designs against him.

Now, lets take a figure of black money circulation in cash:

Cash in Black + fake currency that shall not come back to deposits in banking system as I assume that should be about 5 to 6 lakh crore so that that much earnings to the GOI which could be used for infrastructure development, increase in farmers MSP for procurement, financial inclusion schemes & other welfare schemes, health, rural development, education, research & innovation and upgrading Armed Forces fighting capabilities by equipping them with the best weaponry as needed by them.

2. The terror funding was supported by printing the fake Indian currency in our neighboring country and then circulating it in to India through various routes at a large scale and it was felt by the GOI with conclusive evidences gathered by the Indian Intelligence & Revenue Agencies / Departments. Also, the spurt in incidents of violence in the valley was solely due the same fake currency circulation besides the support to the intrusions for terror. The bank branches were getting a substantial amount of such fake currency and it was a major concern for the GOI, RBI & its associated organisation to take such a step. PM was candid & decisive about the demonetization of this currency in order to put a dead stop to the circulation of such fake notes inside the country in order to kill terror support permanently, so a preparation for the same started with limited personnel may be about six months back in highly secret project and PM announced it with an element of total surprise, so that it could achieve the right purpose to convert this currency in to a trash of papers, could impact precisely and ignited fear who operated with fake currency.

2.The nexalite affected areas were witnessing an increase in support & they were sustaining themselves through such fake currency & black money that was collected by the nexal organisation / groups through extortion and having connivance with drug mafias & terror groups operating across the boundary. So, it was a priority for the GOI to stop it ASAP in order to contain it.

3. The corruption was to be put under check as GOI funds those were transferred to states under federal structure of the country were not getting converted in to delivery to those works / purposes it was meant. The leakages were noticed in large number of cases, so, it was needed to make rotten system to improve immediately by in-stilling a fear in the mind of corrupts that country shall no more run on corrupt or unethical practices and such gaps needs to be plucked quickly.A huge amount of funds were leakages & gathered in few states in the form of cash to support elections.

4. It was one step as part of a chain and indeed the first one to be taken in order to first contain circulation of Black Money in the form of cash so that other steps could be initiated immediately to bring black money back in to the system of banking. It shall increase liquidity and certainly ease out the burden on PSB's exerted by increase in huge amount of NPA's.So, many more such steps are there in pipe line to unearth entire Black Money.

5. The black money shall stop funding education in higher courses such as MBBS,MD's & M.Tech and MBA in private institutions where very high capitation fee was charged in the form of cash(Black Money). It was out of reach even by the Middle Income Group. It is one important reason that government employee become corrupt as they want their wards should study in such institutions.

6. The Social Fabric was totally destroyed by the corruption as people were helpless to do any thing against it. Youth were loosing confidence in the system. So, with this step the corruption is brought under check and now it shall be kept under vigilance by implementing provisions so that it does not get in to the system again.