And the debate continues......

It is more than twenty days since demonetisation was introduced that the debate is still on - if this is going to bring down the black money in the system. The suddenness of the initiative and the untold hardship it has caused to the populace especially at the lower strata of the society is the talking point. The unpreparedness of the government while embarking upon such a huge exercise is too evident and it has given some ammunition to the opposition parties to make some noise. While the government says that there is bound to be some inconvenience to some when an exercise of this scale and magnitude is undertaken, the opposition discounts and counters that it is too big pain to achieve too little. According to the estimates of the experts black money kept in the form of cash is a very small percentage - it varies between 6-15%. To achieve this little by the government, the amount of hardships that the common man is made to endure is too big. There is a possibility of businesses being shut down, economy being thrown out of gear, people rendered jobless mostly the labour class in the unorganized sector are the direct and worst hit. The common man is undergoing the ordeal of cash crunch willingly with a hope that something good may happen to him and the country as promised by Modi after sometime in the future. With this expectant hope he is enduring the hardship without murmur. That's why the so called Akrosh divas organized by the opposition was a damp squib. Every body willingly cooperating with the government in that hope of something good will happen sometime in the future. The hope that has been raised is keeping the country calm amidst what could have been a catastrophe otherwise .

Demonetisation by itself may not bring in the desired effect of eliminating black money. It has to be accompanied by a package of  whole lot of other measures. Of course, Modi has indicated that these will follow soon. Benami transactions, accumulation of gold, money laundered in foreign tax heavens, real estate reforms are some of the areas of next focus. Electoral reforms are conspicuously missing in this laundry list. These measures will have to be necessarily pursued and sustained till the ultimate goal is achieved. While sustaining these clinical or surgical measures (whatever one calls) it is absolutely essential to push the country towards cashless economy to contain the origination of black money. The benefits for the common man could be immense once it is stabilized and gets going. No doubt it will change the discourse of the country itself. It is a huge, huge challenge for Modi and his government. An honest citizen will definitely support him in this nation building endeavor. Modi has to be congratulated for the bold step he has taken to eliminate black money and the ills of it the country is facing. It is a challenge not only for the government but also for the banking system. Banking will surely undergo a metamorphosis of sorts. It is a challenge as well as opportunity for the Banks.

Let us all hope for the best.