What this country needed? Demonetization or drive towards
Cashless society?
It is proven in many countries demonetization helps only in preventing counterfeit not black money still why MODI did this?
How this could have achieved without hurting common people
and small time customers
Preemptive Steps to reduce rush and drive cash less economy.
1. Waiving of bank charges for amounts below 1 lakh per
month.
2. Merchants given waive for first 5 lakh transactions through
card terminals per month.
3. Stopping the production of 500/1000 which makes hard to receive/transport
cash in large amounts.(now made easy by intro of 2000 rs note)
4. Ban for having more than 1 lakh in cash per person (can
be 5 lakhs max). Whatever found more can be seized by govt. (Give time for
people to put money in bank, not overnight).
5. Attaching of all property/Gold/Diamonds/Automobile/Other
expensive items with PAN and centralized database for the same.
6. Ban of sending money overseas without PAN.
Disadvantages of the way I suggested (to MODI).
Information is open to all.
All people have equal chance to come clean.
No favoring possible easily because opposition is also
strong.
Small business men not affected hence no extra income for
big corporates.
All details are open for IT and other law enforcement
agencies to identify tax defaulters.
People with black money will convert to white through commercial
channels which will increase GDP and common man’s business.
Also, tax will be given for all transactions while they
convert money, not as big as Income tax , but still it will be large amount. No
burning of cash.
All banks will have more capital but no transaction fee from
small timers.
Advantages of the way he implemented (to MODI).
Currently, BJP and its allies (who are in favor Modi,
including businessmen) will be given info about this, not exactly 50/1000 is
going to ban but to transfer 500/1000 into other assets). Clearly, people who
was a threat to MODI inside BJP and opposition parties will be unaware of it
kept money in 500/1000.
Now they are almost taken out in money to fund in campaign
and elections. Business men who supposed opposition’s parties also are weak now,
those who have managed to convert money into banks which investigated (surely biased)
and taken down. Basically MODI restored his power as dictator with no
opposition.
With introduction of 2000 rs note, People who converted cash
to assets can make black easily.
Less space required to store 2000 rs note.
