A very bold step by PM Modi - Rs 500 and Rs. 1000 notes shot down!




1. Around 8.00 PM last evening, ie on 8.11.2016, PM Modi addressed the nation to announce that the Rs. 500 and Rs 1000 notes are being taken back and these notes will no longer be valid with effect from the midnight 12.00 o'clock.

2. This announcement took the nation by total surprise. Though people became apprehensive of the short term problems that they may face now, but as was evident from the people's feedbacks coming on TV channels that despite a bit of problems in first few days, people were by and large very happy and they all believed that this could be a very effective step to tackle quite a few problems this country is facing today, like black money and fake currency that reportedly were in great circulation today.

3. The Govt's move can help a lot in rejuvenating the country's economy by rooting out black money and fake currency. During the recent volutary desclosure scheme, black money amounting to Rs. 65,000 cr. were probably brought back into the economy, But it is estimated that despite this initiative of the Govt, blackmoney still amounting to lakhs crores of rupees are stacked across the country, plaguing the economy. 

4. Apart from that, it was reported that huge amount of fake currency, in denominations of Rs. 500 and Rs 1000 were in circulation in the country. These fake notes were so similar to the real ones that it was becoming very difficult to differentiate between them and the situation was getting worse by every passing day. It was reported that this fake currency was infused into our economy from Pakistan and it was being used to nourish the terrorism in the country.

5. In view of the obvious dangers to the economy, this bold step take by Modi Govt makes a great 
sense. Though during a few days now when the transition takes place, people will face a lot of difficulties, but the things would be smooth in a fortnight or so, with the new currency notes of Rs 500 and Rs 2000 gaining ground in the economy and spreading in people's hands.

6. Govt has taken a bold step in the right direction and let us all hope it takes all suitable measures to lessen the immediate short-term problems in transactions, that people might face in the transition period. 



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