Earlier we have share information about Rs 500 and 1000 notes banned rules declaired by PM Modi. Lots of perople are support this decision and few of people are not agree because they have black money, Poor and middle class people are happy and they dont have any tension as they dont have black money, this decision is painfully for businessman who have lots of black money.
In our previous post I have share information on how to exchange your 500 and 1000 rs notes and hope you got it. You have 50 days of time to exchange your money in bank and post offices. Let discuss today advantages and disadvantages of 500 and 1000 notes banned
Benefit of 500 & 1000 notes banned
Large loss of Black money:- This conclusion is pain in the ass for black money owners having vehicles of cash undeclared and experiencing without spending any tax. More and more businesses will be sorted those who accept paper money only such as small jewelers, hotels etc.
End of Fake currency racket:- If applied properly and successfully then it will outcome in end of fake currency noise as most of the fake racket are of Rs500 and Rs1000 but later scammers will create fake Rs2000 observe.
Hurdle for terrorism:- As said by PM Modi “From across the border, our enemies operating racket in India through bogus currency”, We all know he was refering to Pakistand and Chinese suppliers so this choice will put obstacle in their direction. Funding for arms, smuggling, terrorism will take a blow. This is most important advantage to the country.
Decrease in corruption for few months:- Shameless damaged tratiors will discover other techniques but it will devote some time.Like overseas bitcoins,online problems are used for crime cash but it will take sometime.
Fair Election:- we all know how much black cash is used by governmental events at least for future 5 condition election it will be very challenging process to use vehicles of cash in selection like EC captured in Tamilnadu.
Increasement in plastic money like debit card, credit card, online transactions. More and more people do transactions online so there will be no black money.
There will be very good opportunities will open up for poor and middle class people.
Drawback/Disadvantage of 500 & 1000 notes banned
Inconvience to people:- load in trading notices to comman individuals.
Elimination to comman Individuals :- lots of Indian have fake currency that it accidental or earned by effort and they are using it without knowing it. Now banks will refuse to take fake money it direct loss for innocent people.
Lack of Tax Payers Cash :- Rs 500 prnting expenses Rs 2.5 and Rs.1000 expenses Rs 3 , (approx ).Multiply it by number of 500 and 1000 notes present in India ;now govt has to pay these funds from tax payers.
Preliminary increase of corruption:- think about this, you have paas Rs. 1 lacs you go to return, cashier said “sab nakli hai bhai/ben! line se hat baki bhi khade hai””,then you are attached, whether it is bogus or not.
Abroad travelers:- Abroad travelers who may not be visiting India in the near time might suffer. Though they can exchange cash from airport.
It might impact individuals/businesses who accept/use money only. For e.g. if someone is planning a wedding next 7 days then money dealings including Rs. 500 & 1000 notices won’t be approved. This might impact individuals and economic system might get destabilise for a while.
Shortage of Rs. 100 & 50 notes will increase. Government need to provide more cash in 100 soon
Personally i think that It is a very strong decision by Modi and it’s success highly depends on it’s implementation so I would like to appeal every Indian to contribute for it and support to goverment. Everything will be fine soon for sure, initially it will painful to everyone but it will take few days and everything will be fine soon
Please share your thoughts what you think about it via comments.