Narendra Modi yesterday announced the demonetization of Rs 500 and 1000 currency notes. This action is taken to account all the black money present in the country. This demonetization is an assault on all the black money holders, this will also put a stop on the fake currency circulating in the country.
This ban is a nightmare come true for all those who earn money by illegal means and stash the black money. All those who are in the possession of the black money have a lot to fear now. Black money and corruption are the biggest obstacles in eradicating poverty from the nation, PM Narendra Modi said in his speech on Tuesday Evening. He further said, the common people having the 500-1000 notes have nothing to worry, this decision will cause some inconvenience, but in long term it will benefit the entire nation.
While many of the people and the opposition parties may criticize Modi for taking such a drastic step, call it ‘theatrical’, ‘impulsive’, but this move is very well planned and well thought. Want to know the inside story? Read on..
After this plan was proposed by Modi, Finance Minister Arun Jaitley met RBI Directors from all the states on last Thursday. Jaitley proposed the idea of banning Rs 500 and Rs 1000 currency notes to the RBI Directors.
Initially some RBI directors opposed this move of banning the currency notes, saying it would cause a great inconvenience to the citizens. Jaitley asked them to maintain a total secrecy on this matter.
Prime Minister Narendra Modi met Arun Jaitley again on Friday to follow up on the plan.
A fax was sent to RBI’s regional offices from the Finance Ministry on Tuesday. This email told the banks to not accept Rs 500 and Rs 1,000 notes from the next day.
But wait, there’s someone else who has given this idea to Modiji
Man who gave Modiji this idea
The idea behind the demonetization of Rs 500 and 1000 currency notes came from a Pune policy institute, Arthakranti Sansthan, and a man called Anil Bokil, who is a CA and a key member of this financial body and a Chartered Accountant.
Anil Bokil met Narendra Modi in the month of July of this year. He presented some measures that would implement financial reforms in India. They are,
1. Scrap collecting 56 taxes (including income tax), keeping only import duty.
2. Recall and scrap high denomination currencies of 1000, 500 and even 100 rupees.
3. All high-value transactions to be made only through banking systems like cheques, DD, and electronic transfers.
4. Put a cap on cash transactions and no taxing on cash transactions.
5. For the government to collect revenue, introduce single point tax system through a central banking system
This is indeed a great idea! Might be Modi’s move is influenced by this CA! Now that you know the inside story, what do you have to say about this? Do share your views in our comments section below.
