The November 8, 2016 announcement by Prime Minister Sri Narendra Modi which is aimed at eliminating black money and corruption, apart from dealing with the counterfeit currency industry is one of the historic decision taken by government in India.
Digital Economy is a Boon
How this decision proved to be boon is reflected from following facts. Bhartiya Janta Party (BJP) has been able to win by polls in Assam, Arunachal Pradesh and Madhya Pradesh.
General public has welcomed this decision and they are not complaining even through many of us are standing in long queue for withdrawing cash from ATM. People of India is now really happy that this measure will eliminate the widespread black money and counterfeit currency.
Many hoarders of cash are now depositing cash in bank which will boost economy. Employees of bank may be facing some temporary problems but at the end they will get benefited and enjoy more bonus as the deposits in banks will increase many fold and new accounts are being opened by many persons. Crores of people got enrolled in banking system through the use of incentive like Pradhan Matri Bima Yojna etc.
There is sharp increase in the sales of POS machines. The online portal for shopping is booming a lot. The use of online wallet like Paytm, Freecharge etc. are increasing day by day. Many websites are now integrating payment gateways to get the online payment of the products and services.
India is now witnessing true digital economy as more and more educated persons are using online banking systems, credit cards, debit card, payment wallets and online shopping portals. Many people now prefer to pay through card in shopping malls and restaurants.
The increased use of the online and digital transactions will increase transparency and remove corruption from economy. Government agencies involved in tracking taxable income will find it easier to track the transactions and find records from different bank. The seeding of Aadhar Card and PAN no. in transactions will further help in tracing such transactions and help in minimizing corruption.
Why Going Digital Economy is Bane?
Our country youth might be using phones and smart phones but very few of them prefer to use the mobile for transactions and shopping. The safety and security of the internet connections poses its own challenges.
Many persons do not know how to use internet and how to do online transactions. The limited knowledge of netbanking and online shopping portal for sales and purchase.
Except Reliance Jio, other internet providers charge heavy charge for mobile data and this poses another limitation to the use of the internet which is essential for going digital and making our economy a smart economy.
Despite having a deep understanding of the temporary difficulties it might cause to the common man, the Prime Minister, in a courageous move, decided to withdraw Rs.500 and Rs.1,000 denominations in view of the gigantic proportions black money was acquiring, leading to a virtual parallel economy.