Announcement of Discontinuation of Currency Denomination of Rs 500 and Rs 1000 in India

The Indian government has taken a bold decision to discontinue the circulation of currency note of Denominations Rs 500 and Rs 1000 is a welcome step in curbing the black money stashed in the lockers of rich and corrupt persons, mostly businessmen and politicians.
Currency notes of 500 and 2000

Benefits of Discontinuation of Rs 500 and Rs 1000 Currency Note

The announcement and subsequent timely implementation of the plan will be more successful if the following measures are adopted to pull in the black money in the economy.
·        There will be a great boost in the parallel economy of India, which is a lifeline of the economy and which keeps the Indian economy more or less stabilized.
·        A good amount of money recirculation in market will boost economic growth and development.
·        Our currency will have a new look and studded with nanochips which will discourage any forgery of the currency notes.
·        People will learn to save money in bank than in home lockers.
·        All Indian will now strive to have their own bank account which is a long pending dream to ensure banking services to 100% of the citizens.

Suggestions to Public in General

·        Educated and well informed citizen should not hesitate to take Rs500 or Rs 1000 currency from small retailers and vendors as they might not be aware of the changes taking place.
·        We should accept this as a positive change and do not start accusing political system or Prime Minister for troubling middle class.
·        Every change, good or bad brings with it some benefits and loss. This change will bring more benefits than short term loss and inconvenience caused to the citizens.
Do not panic. There is no need to rush to banks on 11th to get new notes. There will be a lot of mess, let it cool down.
Keep only 3 things on your expense list - Food & grocery; travel and healthcare. Rest all should be avoided completely for next 2 weeks.
Food & grocery - small items purchase will not be affected. Prefer buying from super markets or Dmart etc which can accept cards. Save money for cooking gas & milk (as no alternative). Online may also be an option.

Travel - railway & bus tickets are not affected. Public transport should be preferred. Autos involve smaller amounts. For taxis, prefer Ola, uber etc. which can accept cards. Buy fuel with cards.

Healthcare- find out chemists who accept cards. Order regular medicines online on Save money for doctors & general physicians (as no alternative). Hospitals & diagnostic centres usually accept cards / cheque.

Deposit of cash in bank account & exchange of old notes for new ones should be done with extreme care & understanding. Do it only after proper planning & consulting. Remember - No Haste.

Suggestions to Government and Policy Makers

·         All such currencies should not be simply replaced by bank in cash, but the amount should be deposited in a bank and income tax should be calculated for all such account holders.
·        There should be not be any limit for deposit of such cash and due tax should be imposed.
·        Money laundering by banks should be curbed i.e., No one should be allowed to exchange notes without depositing the discontinued currency in the bank account of the person with valid proof of identity and address.
·        Public authorities should be allowed to accept discontinued currency notes till some deadlines which is already set for 31st December which matches the deadline set by Reliance Jio :)
·        The tax on the currency deposited till the deadline should be in proportion to the amount deposited in per account or account of all family members as a whole in joint family for taxation.
·        This will ensure better trapping of the black money from the market and hotlisting of the persons can be done on the basis of the cash amount deposited during this period.
·        Extension of the deposit of discontinued currency should be given to poor and uneducated persons only. No rich and educated person should be given such extension on any ground.
The Indian economy will boom if we adopt some of the measure which was suggested during the Diwali like boycotting of Chinese products and using of domestic products. Everyone should engage themselves in some production work and add value to the economy. Always try to be an asset than a liability to family, society or nation. Then India will surely run on the super highway of the economic growth and development.
Jai Hind!
Shashikant Nishant Sharma
Planning and Publishing Consultant