Introduction
The current currency exchange regime has come under severe debate with the entire opposite parties opposing the move. Let’s analyze the scenario from different perspectivesGOI perspective
- GOI stated that the currency exchange was introduced to curb the black money
- November 24, 2016 is the last date to exchange the old notes for new notes
- GOI aims to bring all the currency circulating in the economy under the formal banking sector to increase transparency
- GOI aims to collect the maximum possible tax revenue as a result of currency exchange
- GOI announced that old notes will be accepted in tax offices, EB bill centers, Petrol bunks etc.
- To ease the problem of change, all tolls were made free till 24th November 2016 for congestion free vehicle movement
- Sentimental speeches made by PM to curb black money
- GOI firm on the currency exchange and said there is no way of taking back the move
- The move was welcomed by Supreme Court of India and PIL filed against GOI has been stayed by it
- GOI seeks the support of all the stakeholders with banking, judiciary and executive offering full support
Banking Perspective
- RBI has taken initiatives to make easy the currency exchange process
- RBI provides full support to exchange the old currency with banks running even on Sundays and working over time
- Banks allowed customers to deposit their money in their bank accounts
- Initially Rs. 4000 was given per person, then it was reduced to Rs. 2000
- There are about 225000 ATMs across India
- Out of which 85000 ATMs have been upgraded to process the new currencies as on November 24, 2016
- Steps are on full swing to calibrate the rest of the ATMs by this month end
- Ms. Arundatti Bhattacharya addressed the media on 23rd November and welcomed the measure of currency exchange as a positive measure to curb black money
Opposition Parties Perspective
- Mr. Arvind Kejriwal and Ms. Mamta were the first to openly condemn GOI for their action
- All opposition parties take a negative stance for the problems caused to common people
- Both the houses of parliament are summoned continuously owing to the confusion prevailing over the currency exchange regime
- All the opposition MP’s staged a mass demonstration against GOI on 23rd November, 2016 in Delhi
Common man perspective
- First to get affected was the common man
- There were long queues every where in Banks, Tax offices, EB centers etc. to exchange the old currency
- Marriages faced problems with people not accepting the old notes
- Business transactions have been reduced to a great extent as the common man is not transacting as usual
- People had to wait in long queue from morning to evening to get 4000
- Many of them put leave for their job to transact
- Second problem of money change arouse
- Common man got 2000 rupee notes from the banks but there was no change available in the local shops
- Severe money change problem with less circulation of 100 rupee notes
- Common man is still facing the problem doing only limited transactions
- There is a lot of curfew in some parts of the country with the public involving in road blockage and breaking open the ATM machines
Media Perspective
- Media reflected the common man to a great extent in this currency regime and exposed different methods taken to illegally exchange the black money
- Media accused the brokers for using poor people to transact again and again to exchange the black money
- Brokers charged a whopping 40 to 50 percent commission for exchanging the black money through the formal channel
- Poor people were given commission by the brokers
- Many Bank officials were corrupt and exchanged new currency in an illegal manner
- Transport corporations received money from common people in denomination of 10, 20, 50 and 100 but deposited 500 and 1000 in the bank openly revealing the corruption
- Misuse of Jan Dan Yojana accounts with deposits accumulating to 20000 crore in these accounts
- Investigation to be done by RBI on these accounts
Verdict as of now
- Majority of the people welcomed the measure as a means of developing India
- The recent Poll conducted by Modi App on November 23, 2016 states that 93 percent of Indians are favoring the currency exchange
