Taking on the black money
This refers to the column “Fighting black” (FE, November 14). It is rightly stated that “The demonetisation move, apart from taking on the black economy, means more liquidity in the banking system”. This is good for the banking sector reeling under the NPA burden and for the economy as deposits help in spurring lending. The evil of corruption has been spread by certain sections of society for their selfish interest. The primary cause of concern here is the quality of India’s political leadership, which has consistently betrayed its own taxmen. PM Modi’s master-stroke will eliminate the counterfeit notes in circulation and bring black money-holders under the scanner to a large extent. It will also help us move towards a cashless economy. Today, the rich and powerful, whose money is stashed in tax havens outside the country, are leading hassle-free lives. The timely and swift move to cleanse the corruption the cancerous black money is a most welcome move. According to one estimate, the quantum of black money in circulation in domestic economy is three times the regular circulated currency. The bold stroke of demonetisation may rattle people but it will definitely inject dynamism in the moribund economy. Prevention is better than the elusive cure. Accumulation of black money should be nipped in the bud. Tax avoidance, tax evasion, etc, ably guided and assisted by the financial advisers are at the base. The prevalent system of cash transaction—and most of the black money in realty sector and hospitality industry—needs to be brought within the system for tax purposes.
Vinod C Dixit, Ahmedabad
Scrap 2,000-rupee note
As a lay-person, I wish to congratulate the prime minister, the Governor of RBI and the banks who kept the idea of scrapping the 500- and 1,000-rupee notes highly confidential and exposed the demonetisation plan only late in the evening on November 8, after bank hours. The country is flooded with fake currency and the scrapping of the high-value denomination notes is ideal, as is the move to introduce new notes. My suggestion to the PM, Governor Patel and the finance minister is to scrap the new 2,000-rupee noteand introduce just 500. I got 2,000-rupee notes from Vijaya Bank and no trader wants to the accept notes. Please scrap the 2,000-rupee note in public interest. Already, criticism that the note will help the corrupt to stack and enjoy black money once over again. Since banks are equipped with electronic clearance, to facilitate people in getting their cheques encashed easily and help transactions, introduce daily clearance two or even three times.
BS Ganesh, Bengaluru
Demonetisation a sound policy
Even though the demonetisation decision declared by the prime minister on November 8 has been termed a surgical strike, the Modi-haters have responded citing loopholes in the decision and its implementation. The PM himself had underlined the problems that may be faced by the people at large at the outset. Some unprecedented problems that arose are being reviewed. The common man in the streets is happy and praising the government. Delhi CM Arvind Kejriwal is being promoted as the leader of all political opposition to the BJP, with his poisonous language transmitted through the mainstream media without asking for a single peice of evidence from him. Possibly, there are big guns in the mainstream media who may be hit hard by demonetisation.
Jai Parkash Gupta, Ambala Cantt
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