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2. Implementation of De-Monetisation – Pro’s & Con’s.
– Well government had promised a greater formalisation and digitisation of the economy. With the move to demonetise – 86 percent of India’s currency has seen nearly all of demonetised notes return to the RBI, but cash continues to dominate India’s transactions. We must wake up to the fact that parallel economy is a key driver in India, which indeed is a huge job creator. We have sufficient layers across all state & central government departments to thrive & run parallel economies. So parallel economies, are channels created by bureaucrats of India & they are the one’s who breathes oxygen into each of the channels. It’s a widely known fact, that every Indian politician will have his own expertise in each of the channel – for example – Power sector owned by one minister, Oil & Gas by another minister.. So accordingly they go about creating non payroll jobs which forms a part of parallel economy.
So when colour of money turns from Black to white, at the very first layer of bureaucracy, you cannot cease it from flowing to lower channels of parallel economy. So this is where De-Mon fails. As it was noticed & reported by most section of media – Bureaucrats had a first say to convert their black money to white with the help of loosely unstructured banking regulations – which lead to dry days at ATM’s for common man to suffer.
Please note, it will be a loose statement if we slammed the government for it – indeed no government across the world in any country can have a fool proof mechanism to contain corruption by way of policies. And India with several layers of bureaucratic role plays starting from the grass route level, it becomes imperative & fair to anticipate – that corruption can only be contained but not eliminated. So measures like De-Mon as an economic tool failed to create an impact that it was originally aimed at.
– Article by Suman Adithya Rao (SEBI Certified Research Analyst, Management Graduate in Entrepreneurship & Small Business Management)
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