Ever since the demonetisation announcement was made live, there has been an air of optimism with a tinge of resentment which envelopes the nation. The opposition claiming their approach to the move with the new announcements being made everyday, the common man is battling with the nuances of the BIG move.
Demonetisation has not only taken the Indian economy aback but also has amazed the world. Lawrence Summers, the former US treasury secretary, published in the Financial Times that, the November 8 announcement in India has been “the most sweeping change in currency policy that has occurred anywhere in the world in decades”.
There were a multitude of factors that paved way for the Prime Minister to make to render higher denomination notes illegal. Majority of public holding unaccounted money, increased terrorism funding, with proliferating tax-evasions were cited as the major forces behind declaring the move. However, paramount amount of impetus has been given to curb the menace of black money.
The currency was demonetised 4 hours (by 8th midnight) after the announcement. On the subsequent day of the announcement, the banks were shut. People with a dearth of smaller currency notes in their homes found it difficult to trade daily essentials in the market. However, in a bid to ease out the sudden pressure on the public, government announced a series of exemptions of host of places where commodity and services are tradable for Rs.1000 and Rs.500 notes.
Modi portrayed the hassles of demonetisation as national spirit of sacrifice. The announcement was declared not long after Diwali eve, India’s most popular festival, the process of demonetisation was described as a new “festival of honesty”. Modi emphasised on the fact that a little inconvenience can be borne by all Indians to accomplish success in PM-led campaigns like ‘Digital India’ and ‘Cashless India’.
One month into Modi’s announcement, people are now adept to confront the aftermath and consequences of Demonetisation. With a multiplicity of hassles to confront, the brunt of demonetisation has reduced manifold since it’s announcement and is soon likely to arrive at normalcy.