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How does the currency ban impact on indian economy

On November 8th the Honorable PM Narendra modi announced the withdraw of 500 Rs and 1000Rs currency notes from the market.The decision was to control over the black money and counter fiets notes. We can look what is happening and what will be the impact of this decision in the economy. Almost every Indians accepted PM’s decision on the very first day and now everyone is realizing what is really happening. Actually this decision is affecting every Indians.

 

Counter fiet currency
The counter fiet currency notes that are circulated in the market came to an end by the currency withdrawl of 500rs and 1000rs notes.
But we need to think some facts about the counter fiet notes. The counter fiets notes are made up of almost a cost of 39-50 rs per note. Now the india government had published new 2000rs notes in the market. so think as a counter fiet note maker, he is now dreaming to make the new note because if he makes a 2000rs note he will get almost 1950rs income from a single note. The risk and other facilities for making the currency is same for old 1000rs and 2000rs.Every one including the governments officials knows that the counter fiets notes are made by pakistanis with the help of pakistani government.So for making new 2000rs counter fiet notes is note a big task for them. The new counterfiet note will not come in a day or with in a week. I think they had been started to think how to make the new counter fiet notes.

Black Money
The black money holders losted there sleep on the first day of the decision itself. since the decision came suddenly every black money holders get shocked. Yes those who are keeping cores of cash in there hand will affect its deeply.Every one is looking to make ther cash into white. The black money holders are briliant than the government officials, since they are holding money they are looking every second to make it white.In india to make the black money into white is not a big task.
This will affects only on who have black money as cash. Majority of black money are made into gold and other assets so this decision will affect to a minority of black money holders.

Common people
Actually this is affecting the common people in india.Almost every one is having these curreny notes and they are trying to convert it to lower currency and 2000rs notes.
If the system of currency change was done in a better way, then the common people will not be affected. Now the common people need to change the currency through banks and other selected mediums. But the situation at the bank and other office is a big queue and every one should wait for a long hours to get changed. Some banks or ATM has the lack of currency notes also.

A big percentage of people is suffering with this withdrawn currency notes. they are struggling to pay for their basic needs like foods and other purpose. The case at the hospital was also the same. Majority of private hospitals is hestitated to make payment with the banned currency.

Richest people

The richest people is not suffering a lot, The bank employees make the currency changed at their door step, so they need to be in the queue. Almost every rich people is having advanced technologies like credit cards and internet banking. so majority of payments can be done through this.

Indian economy

The Biggest cash was 1000rs and now it is 2000rs. so the value of currency will decrease for every one. When it is considered on the Corruption, The 1000rs note was happy for small officials. but now it turns to 2000rs. The balance payment for 1000rs was a small problem but now its 2000rs. it will be very difficult to provide balance for 2000rs note. The lower denomination currency will disapper very fastly since the balance payment needs more lower denominations

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