November 8th, 2016, IIF Delhi & G-Noida :
Demonetisation of Higher Denomination Notes of Rs.500 and Rs 1,000 notes is one of boldest decision in the right direction. Prime Minister Narender Modi deserves all praise for this decision. I welcome this decision whole heartedly.
Demonetisation which means that the Rs.500 and Rs.1,000 bank notes would no longer be legal tender from the midnight of 8th November 2016 and beginning 0.00 hrs of 9th November 2016. These notes would become a piece a paper except through exchange or to be deposited in the banks in duration announced by Prime Minister Narender Modi.
Demonetisation of Rs. 1,000 (one thousand ) and Rs. 10,000 (ten thousand) bank notes was earlier done in January 1946 (pre independence). However, High denomination notes of Rs. 1,000 (One thousand) and Rs. 5,000 (five thousand) and Rs. 10,000 (ten thousand) were reintroduced in 1954. These bank notes were demonetised in January 1978. by Higher Denomination Bank Notes (demonetisation) Act 1978.
Demonetisation or scrapping of a currency is a very costly affair from the point of view of cost to the central bank of a country, very high administrative costs, and loss of prestige of the currency internationally. But given the circumstances, it is at time most imminent step to curb black money, corruption and terrorism.
The announcement of demonetisation, by the Prime Minister after meeting the three chiefs of forces, clearly indicates that it is surgical operation in the best interest of Nation - our beloved India. It is matter of security of the nation besides a war against gigantic level black money and high level of corruption prevailing in India. The black money and corruption, have a cascading effect on the economy. Higher denomination bank notes are extensively used by terrorists and militants and other anti-social elements.
Prime Minister Modi has in one go proceeded from Swatch Bharat to clean India movement, freeing India from worst evils India is suffering from. Nobody could ever believe that such surgical operation can be carried out to free India from these evils.
In one of my interview on Lok Sabha TV immediately after the present government was sworn in , I stated that Prime Minister Narender Modi would resort to clean India Movement. I am happy he has done it. He has done what he promised in the election manifesto.
Demonetisation is one of the greatest reward to honest and worst punishment to corrupt and holders of Black Money
Indian Institute of Finance
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