8th of November will always be remembered as a historic day when a sudden shock is given to the nation by our prime minister of India by announcing the ban on Rs.500 and Rs.1000 note. The objective of demonetization was to curb the black money circulating in the economic system. Around 86% of the total currency circulating in the economy comprises 500 and 1000 rupees note.
There were many other objective linked to that bold move such as strike on terror funding, fake currency that is circulating in our economy. The black money is mainly found in gold, properties and bonds but no one can deny it that the circulation of black money simply starts from illegal cash transaction. However, According to the RBI reports 99% of the black money returns to the banks. So the question arises where has the black money gone? Has the government failed to remove the black money from the system?
Saying the move was fail is not good. As the black money which was earlier not known to us has now came to mainstream economy. Digital transaction has shown a sudden jump after demonetization. Tax and revenue collection has also gone up to a far extent after demonetization. But to increase the digital transaction and tax collection, was demonetization really required?
saying completely yes is just like the move was like “Using a sledgehammer to crack a nut”. it can be one of the objectives of the move but not absolute. However,there is also a drop in stone pelting in Kashmir as per the intelligence agency reports.
The move is successful in various aspect but saying it was complete successful is not true. But the move was bold and no one can deny from that as it shows the government intention to strike on the corruption and black money.