Editor,
This refers to the thought-provoking article “Musings on Demonetisation” (ST- Nov 23, 2016). The government’s decision to declare Rs. 500 and Rs. 1000 rupee notes illegal has really evoked positive response from economists and industrialists. This is the first time in Indian politics that PM Modi has showed actual leadership qualities, which is fruitful for every non-corrupt individuals. No doubt the common man would be troubled by this decision but soon everything will be alright. It is good that PM without giving any indication for such a drastic move, carried out a surgical strike and parties who thrive on black money are dumb- founded. The Congress is the worst affected and crying foul and creating panic. The PM has been slowly taking action by bringing maximum people in the banking ambit. Most of the real estate transactions in the country are done using unaccounted cash. When, black money and corruption are the biggest obstacles in eradicating poverty, steps like this will indeed strengthen India’s economy and democracy despite some short term dislocations that are inevitable, and more must follow for ferreting out undeclared wealth stored in other ways. People who have amassed cash illegally in large quantities will find their business terminated suddenly. Government needs to introduce laws where transactions and service payments above a certain amount has to be via crossed-cheque, bank cheque, bank-cards or direct bank transfer.
Yours etc.,
Vinod C. Dixit
Ahmedabad- 15
Make demonetisation meaningful
Editor,
Your editorial, “Banks and last mile access” (ST, November 23, 2016), has, rightly, pointed out that those who have plastic money and smart phones with payment apps tended to suffer lesser than the person who is not blessed with such in-things. Indeed, the demonetization drive has hit the lives of the common people very hard. Now, it is to be seen what is the end result of the sufferings of the masses as the liquid black money in our country is only the tip of the iceberg of the black wealth. It constitutes only 5 to 6 per cent of the total black assets and is actually less than the percentage share of an iceberg – tip. The government has not yet touched the “black solid” of gold, benami property and the “black liquid” of foreign bank deposits abroad with a bargepole. The main and the most dangerous part of the iceberg is what remains beneath the water. But this can even wreck a titanic economy. So, complimentary steps like weeding out black assets and banning cash transactions of over Rs.50,000 must be taken so that the sufferings of the people come to fruition. Otherwise, the ongoing demonetization will be recorded in history as a costly game of gimmicks.
Yours etc.,
Sujit De,
Kolkata
Discontinue further printing of ten and one rupee notes
Editor,
Bimetallic brass-steel (yellow-white) other than commemorative ten-rupee coins have basic design-faults with denomination numeral ‘10’ crossing haphazardly outside the white steel-made portion of the bimetallic coin giving an ugly look to the coin. Likewise ten rays on yellow portion cross to the white portion. Security Printing & Minting Corporation of India Limited (SPMCIL), Reserve Bank of India (RBI), Department of Economic Affairs (DoEA) and/or any concerned public-authority should rectify the design-fault to make ten-rupee coins attractive. Since size of ten-rupee coins is larger than the only other yellow coin of rupee-five denomination, ten-rupee coins can also be of single brass (yellow) metal in case minting-cost of bimetallic coins is higher as compared to single-metal coins.
Mint-percentage of ten-rupee coins which was 2.8 percent of total minted coins as on March 2015 should be gradually increased for total discontinuance of ten-rupee notes to save high cost of printing currency. At least with size-reduction of currency-notes after demonetisation, wrong decision of re-issue of one-rupee notes on 06.03.2015 should be reversed with existing stock sold officially as collector’s item on premium in plastic-pack like coin-sets are sold at much higher price than the face-value, to effectively check heavy price in black market for these notes issued despite stiff opposition of RBI perhaps because of bureaucratic craze to have their signature on it. Significantly one-rupee note bears signature of Union Finance Secretary while notes of other denominations bear signature of RBI governor.
Yours etc.,
SUBHASH CHANDRA AGRAWAL
(Guinness Record Holder & Crusader for Transparency)
DELHI – 6
Black money is peoples’ money
Editor,
The sudden demonetization of big currency notes by the NDA government is a welcome step. Though is has created short term inconvenience to the people, overall it has been a choice between changing now or allowing the deficiency to carry on. Black money, or in other words, ill-gotten money earned through dubious means has been source of discrimination in society, rise in inflation, low taxes, lack of financial strength in re-modeling the economy etc. These are now gradually tackled by an able and determined Prime Minister. Just like Mr. Piyush Goyal, Union Minister had simply put it, those who are criticising, shouting slogans against such measures are themselves afraid due to their corrupt practices and illegally hoarded money which is giving them sleepless nights. Such moneybags have been a boon for political parties like the Congress which has been surviving and buying votes during elections like in our state Meghalaya. This step is a positive one and hope that more such measures would be forthcoming under the NDA government.
Yours etc…
Dominic S. Wankhar
Shillong-3