Readers tell us if PM Modi's demonetisation drive will help reduce black money

On November 8, PM Narendra Modi announced that the currency notes of Rs500 and Rs1000 would not hold legal tender from midnight onwards. People just had four hours to get notes that were still valid, and to get transactions done with the old notes. This pan-India move was called "demonetisation", or note swap, because it also involved later remonetisation. Modi made the big pitch in his "surgical strike against black money" and corruption.

Since that day, for about a week now, serpentine queues at ATMs and banks have been the sights everywhere. Every city, big and small, bustling or sleepy, has experienced this rude financial epilepsy, in which the hard-earned money of India's 1.2 billion people were made inaccessible, beyond reach and with cut-off limits at Rs4,000 (now increased to Rs4,500). If fake big notes were the problem, the pink revolution in the form of the Rs2,000 note made an appearance, becoming an occasion for disaster selfie on social media.

Meanwhile, the ATMs ran out of money, and banks struggled to dish out currency notes in 100 or below denominations to a tidal wave of anxious citizens, afraid their own money was worthless now. However, the PM and his minsters, as well as his party spokespersons and think-tank warriors kept reassuring in the air that this minor inconvenience - which has hit 86 per cent of cash-based informal economy, 45 per cent of GDP, and about 85 per cent of employment opportunities - was nothing and must be borne for the sake of the nation in order to curb the black money menace.

But is that really so? Do those with black money keep mattresses stacked with hard cash, as seen in tacky Bollywood movies? Or is this a politically motivated, economically disastrous move which was only an exercise in headline grabbing the PM and his party, but has misfired badly? 

It seems the jury is still out on the massive demonetisation drive exercised by PM Modi. While some have indeed welcomed it, and have accepted the hardships that have come in their way as a nationalist hiccup, the rural and urban poor have been hit very hard. Days' labour has been lost, daily wage labourers have been rendered jobless, without any cash for them to get compensated for their hard work.

We opened out the debate to our readers. What they have to say would take you by surprise. Read on.

DailyO readers weigh in.

Rahul Singh: Demonetisation? Rs 500 note is still there and Rs 1,000 replaced with an even bigger 2000 Rs. note. What kind demonetisation is that? Modi is selling the BS and people are buying it, not everyone though!

Pramod Godse: The IT department must scrutinize the source of money for every Rs 2 to 2.5 lacks deposited in banks after demonetization of currency. There is the possibility of black money in scattered amount is safely deposited in the accounts of relatives, friends, servants etc. All transactions in purchase sale of property done in last 20 years must be probed by the Hon'ble Court's so that the fraudsters will surrender.

Sabaktageen Ahmad: 33,000 crore fake notes were printed by RBI in January this year. Govt wants those fake notes back. Hence this step of demonetisation has been taken. Those who have black money do not keep it in cash.

Also read - 9 Indians who should not have spoken about demonetisation