CMA Rakesh Bhalla

DEMONETISATION : A Misguided Missile fired in Haste – But we should support smooth implementation in Larger interest of “ Great India”

I appreciate the intention of the Government for demonetisation of the currency as it might have taken in good spirit for betterment of people as well as our nation.

However, following questions/issues which are being circulated through media / social media still remained unanswered which is raising doubts in the minds of common man and need to be clarified :

1) Secrecy of the whole operation

Honb’le Prime Minister & Finance Minister repeatedly & strongly stated that this development was kept as top secret which was known to few people only before 08th evening. At this level, this statement is very significant & we believe that it is true but the following evidences are creating doubts regarding the authenticity of their statement:

– How news dated 27th October 2016 appeared in Dainik Jagran, one of daily newspapers that Rs. 500 to Rs. 1000 notes are going to be withdrawn & now Rs. 2000 note will come ? (Source: Dainik Jagran dated 27th October 2016).

– How & Why in one of the state units of BJP, deposit of Rs. 3 crores in bank accounts was made immediately before announcement of demonetisation on 08th November ? (Source – The Tribune dated 11th Nov. 2016 & The Times News Network dated 12th Nov 2016). Out of Rs. 3 crores, Rs. 60 lakhs deposited hours before & Rs. 40 lakhs were deposited minutes before the announcement of demonetization scheme by the PM at around 8 pm. This does not seems normal deposit. Information is available for one account only but there are lakhs of accounts of various units of BJP and other political parties where majority of so called black money could have been deposited.

How the deposit was made by BJP unit even after the normal business working hours of the banks & just before the announcement?

– Recent RBI reports stated that  the percentage of deposits in various banks such as SBI, PNB, UBI and Bank of Baroda, has considerably  increased in July-September Q2 compared to the previous quarters. Opposition parties claimed that Rs. 5 lac crores have been additionally deposited which is one third of total currency of Rs. 500/1000 notes, in response to such increase in deposits, FM made an unimpressive statement that the increase in deposits was primarily on account of payout of arrears of 7th Pay Commission (arrears were only Rs. 34 thousand crores against deposits of Rs. 5 lac crores) – ( Source India.com & various news items)

2) Writing off of multi-crores corporate loans by banks

As per the media reports, one of the major banks has written off multi crores loans of various corporate houses including Vijaya Mallaya Group. There may be more banks who have done it in the name of NPA.

Was there any nexus between write off of multi crore loans with this Note Bandhi decision?

3) Appointment of Mr Urjit Patel and removal of Mr. Raghuram Rajan as Governor of RBI

–  As per tele-broadcast dated 13th November 2016, Honb’le Prime Minister has stated that this preparation was started 10 months back & Government also asserted that printing preparation was started six months back (Time of India 9th Nov 2016). It seems right also as such huge currency printing cannot be done in one & half month time.

–  But question arises : –

  • Since this is reported that Raghuram rajan opposed the decision, whether preparation & printing has been started without the consent of Mr. Raghuram Rajan-How it is possible? Has PM/FM directly taken the decision without consent of Governor of RBI?
  • If printing started more than one & half months back with the signatures of Mr. Urjit Patel, then

a) Was appointment of Mr. Urjit Patel (who happens to be associated with Reliance Group owned by Ambanis) and removal of Mr. Raghuram Rajan already pre determined?

b) Whether there was any nexus between removal of Mr. Raghuram Rajan, write off of loans of various banks & decision of demonetization of currency?

c) Whether appointment of Mr. Urjit Patel was strictly on Merit?

After De-Monetization

How Government is ensuring that so called black money which was in circulation has not been converted into fresh currency after using following left out loopholes resulting into irreparable loss : –

A) Government has declared the deposits upto Rs. 2.5 lacs in normal bank accounts & upto Rs. 50000/- in Jandhan accounts without any scrutiny.

There are crores of accounts of various individuals in different banks. These accounts can easily be used for conversion of Black Money into White by allowing free flow of deposits below Rs. 2.5 lacs without scrutiny.

B) Our country has a population of 125 crores & if ID cards of 1% people is used than much more than the whole black money in cash can be converted by this mode only. It is pertinent to mention here that upto first 10 days there was no bar on use of one ID card in ‘n’ number of  Banks / branches.

C) Black money can easily be deposited or used showing it Agriculture & other exempted incomes. What steps Government has taken to block this?

D) There is an increase in purchase of Gold in Tons & other costly items for cash both before & after the decision? How it is ensured that this was not black money?

E) Another method of converting black money is deposits shown by Religious places like Temple, Gurudwara etc. What action has been taken by the Government to ensure the genuineness of the transaction?

F) Since accounts of political parties do not come under RTI or Income Tax, they don’t have to disclose the reasons of such deposits. The whole money in cash can be deposited in these types of accounts. What action has been taken by the Government to ensure the genuineness of the transaction?

G) Other means which are being used for converting black money into white is

  • Conversion of old currency into new one by commission agents at 20-40% conversion charges (Refer-Media sting operation).
  • Property being purchased & sold against old currency (Refer-Media Sting operation).
  • Even after 8th Nov Govt allowed to use old money for various payments including Govt Payments / Taxes / Payment of Bank loans & some others . How Govt ensured that use of old currency notes at these places is not use of Black money .

Fake Currency :

No doubt there are fake currency notes in circulation . But fake currency which is in circulation is which is being received  by common man in good faith. So they will suffer not those who are actually culprits for printing & circulation. Other type of fake currency is, which is not in circulation will be dead money for them but this cost them just printing cost nothing else. Moreover how Govt will ensure that New Currency Notes specifically Rs 2000 notes will not be printed by Fake currency dealers . We should understand this is not Rocket Technology . If they can print old currency what is special in new currency ?

Even new currency notes of Rs. 2000 (though not fake ) were found with the terrorists killed recently during encounter.

Future stoppage not ensured

It is pertinent to mention that if generation of Black Money is not stopped than this demonetization exercise by the Government will not be fruitful & may result into another Big Scam.

– No effect on big fishes &  they may escape unhurt.

– Harassment to common man

  • Farmers affected – selling of perishable produce at throw away prices, loan at higher rates from commission agents (arhtiyas) for seeds, suicide cases by farmers may increase

As ours is an agriculture dominated economy, the above factors may disturb the whole economic development of our nation.

  • Small businessmen / Daily wager dealing on cash already been affected.
  • General public will be affected.
  • Negative effect may be on Job Market .
  • Recession in General & in particular in property market – On one hand we can say that cheaper property will be available and on the other hand, genuine investment in property will diminish & General recession is not good for any economy.
  • As per Opposition parties, more than 50 person have died which can be considered as after effects of demonetization operation. If it is true then who is responsible for all this?

Benefit – Liquidity may improve but may have negative effect on Retired Class Individuals

Although liquidity position of the Banks will  improve and Interest rates may come down and may be beneficial to big businessmen & corporates but at the same type decrease in rates of fixed deposits will have negative effect on Retired Class whose main income is interest.

Whether this loss has been intended by the Government at the cost of small gain from demonetization?

Moreover as per recent estimate only 6% of the black money is kept in the form of cash and therefore much more can be converted & the said objective of the Government may not be achieved.

Earlier also demonetization was implemented in nine countries & failed to achieve the desired objectives of curbing the black money in majority of cases.

Though this move is not less than “ Misguided Missile fired in Haste” just to have political gain specifically in forthcoming state election but I think we should support in the smooth implementation of the move considering bigger interest of “Great India” as decision has already been taken by Government elected by us only & roll back now will be another  disaster.

Jai Hind

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73 responses to “Demonetisation : A Misguided Missile fired in Haste”

  1. amulya mohanty says:

    Nice acceptable ……..de new 500 and 2000 notes would have been replaced by the same size that of de sizes of old 500 and 1000 notes which could hav been easily used in ATMS.Becoz of different size the softwire is required to be changed for transaction in ATMS WHICH took a long time.And yet now all the ATMS are not updated.Thanx to all my valuable Readers those who understand my thinking ……….

  2. Brij says:

    By allowing 50%tax and 50%tax is extension of schescheme closed on30/09/16.second change of 500&1000rs notes to new currency’s.This is outcome of demonitisation . Which can be done by parallel use of old and new currency notes and withdrawal of old notes in a specified time..What required to take such an awesome rout ,Govt please come out what /why war type situations has been created.

  3. Sandip Kr. Das says:

    very good article. Thanks.

  4. CA. S.C.Podder says:

    Good information .

  5. Rakesh Didwania says:

    nice & unbised article

  6. Paru says:

    Except a few intelligent people like those in Tax Guru, rest all seem to be fools, especially, Arun Jaitlewy, Urjit Patel, Raghuram Rajan and the likes. I am surprised at these jokers writing articles on this move of Demonetization. Dear ”knowalls” kindly just follow. Don’t try and lead. We have enough jokers doing just that.

  7. Stan says:

    Demonetization was only a desperate cure to a helpless situation. The alternative was to put a few well-known politicians whose daily earnings run into 8 figures behind bars. But then, you dont want to commit harakiri. Terrorism is a rampant business wherein seasoned politicians, no better than looting colonialist, are shrewd enough to dump responsibility on the other side. Demonetization is thus only a temporary cure and things will return back to normal with minimum charge of Rs.2000/- to recover losses.

  8. CA/. Bhavesh Savla says:

    most of the article is based on rumours which the author has not even tried to veify. Did he go and check with Dainik Jagran whether actually that article was written? I went ot dainik jagran website, choose lucknow edition and page 14. no such article appears. that page is photoshopped. looks like author is faon of kejriwal that he is following rumour mongering policy.
    And you are naive to suggest that money was deposited. How does it make difference if rs., 1 cr was deposited before or after announcement? It is still going to get reported in AIR by bank?
    Have you gone crazy.

    Bring facts on ground.

    • Rakesh Bhalla says:

      This is a published article, are you checking all the newspapers regarding printing of various articles? The article written is based on the facts/ logics and figures available , rather than making general statements we as respectable citizens of India should not indulge in blaming other/ s policy measures.

  9. Praveen Narayan says:

    Dear CMA Rakesh Bhalla,

    I have few doubts in the points you mentioned:-
    1. About secrecy- You said BJP units have deposited huge cash immediately before demonetization declaration- My doubt is what do they benefited from depositing the cash on 8th instead of 10th?
    In my opinion there is no difference, they will be answerable if the money is unaccounted.

    2. About increase in deposits in Q2

    Doubt:-
    a. what is the % of increase in deposits compared to Q1- 2016-17?
    b. what is the % of increase in deposits compared to Q2- 2015-16?
    c. Only BJPs made deposits in Q2?

    3. Writing off of multi-crores corporate loans by banks :-
    Do you really think, after this writing off, these loans are become not claimable? In my knowledge the claim of the banks still persists.
    I thought this allegation is only of a lay man who does not have knowledge of these technical terms. I found myself wonder you are a CMA…!

    4. Appointment of Mr Urjit Patel and removal of Mr. Raghuram Rajan as Governor of RBI:-

    a. Who had in fact REMOVED Mr. Raghuram Rajan as Governor of RBI?
    b. Has Mr. Raghuram Rajan as Governor of RBI made a statement that he had opposed the decision?

    5. After De-Monetization

    a. Some people believe that they successfully converted their black money into white by depositing cash upto Rs.2.5 Lakhs in different accounts. But it is not so. The game is just started. All deposits above Rs.50,000 will be reported to IT dept and they will be chased.
    I accept 20%- 30% black money holders may be escaped, but not more than that.

    b. It is not so easy to convert black money into white-
    – simply showing it as agricultural income.(since all transactions above Rs.50k is being tracked)

    – Investment in Gold-
    i- the investors will be booked when they make sale. and the price of gold will going to be diminishing, make a loss to the investors.
    ii- There was huge sale of gold on 8th evening- My doubt- the sellers can not simply escape from the trouble- they have to show it as their sale, pay income tax; (many are in real trouble of explaining quantitative data of their stock)

    – Donations to Political parties/ temple-
    i. Under Section 13-A, income by way of voluntary contributions to a political party is not taxed. This exemption can only be availed if the party in question maintains a book of accounts with respect to these contributions.
    ii. another doubt:- is it so easy to donate black money to temple/ political party and get it back as white money??? If yes, please let me know few means to do it…!

    – Other means which are being used…:-
    i. Through agents- In the chain, one person has to put the money into bank account to make it new currency. They will be caught. I accept about 20% of black money would have been converted as white.
    ii. Property being purchased & sold against old currency- In the chain, one person has to put the money into bank account to make it new currency.
    and the investor will be suffered huge loss due to reduction in value of land in coming period.

    – Allowed to pay taxes / Payment of Bank loans
    i. Any payment of tax have account and there is a limit too- you can not pay as much as you want.
    ii. All repayments of bank loan will be tracked.

    – Fake currency- I agree, there will be new fake currencies. But this could be curbed by stringent measures to ensure online payments on high value transactions.

    – I agree there are many difficulties to common man

    – negative effect on Retired Class Individuals
    Low rate of interest will lead to low cost of living, that will automatically adjusted. ( Getting high interest and High cost of living is equal to low interest and low cost of living)

    – The benefit demonetization will much more than the cost….:) Be optimistic..:)

  10. Kamal Modi says:

    The writer is just naive. He is accusing that BJP Party deposited large amount of money in the bank just before the announcement. For your info, they have DEPOSITED IN THE BANK WHICH THEY STILL CAN DO EVEN AFTER ANNOUNCEMENT. Since it is deposited in the bank, it is accounted money. Depositing before or after announcement does not make any difference.

  11. Ganeshram says:

    Sir you Being a CA is talking like all other Politicians.
    The Banks have not written off Big Bad Loans.
    They are free to take action for recovery , you know accounting practices.
    It will defenitely have Positive effect and all Opposition Leaders are Exposing themselves as Gaurdians og Black Money & Corruption, which Shri Modi wanted the Opposition to take Knee Jerk reactions and fall into the WEB woven by him.
    So I humbly request to be a Professional and Strictly follow Ethics as laid down by ICAI
    Warm Regards
    Ganeshram
    Iam an Entrepreuner and an Engineer.

  12. k c agarwal says:

    I TOTALLY AGREE WITH THE WRITER

    • Praveen Narayan says:

      Dear CMA Rakesh Bhalla,

      I have few doubts in the points you mentioned:-
      1. About secrecy- You said BJP units have deposited huge cash immediately before demonetization declaration- My doubt is what do they benefited from depositing the cash on 8th instead of 10th?
      In my opinion there is no difference, they will be answerable if the money is unaccounted.

      2. About increase in deposits in Q2

      Doubt:-
      a. what is the % of increase in deposits compared to Q1- 2016-17?
      b. what is the % of increase in deposits compared to Q2- 2015-16?
      c. Only BJPs made deposits in Q2?

      3. Writing off of multi-crores corporate loans by banks :-
      Do you really think, after this writing off, these loans are become not claimable? In my knowledge the claim of the banks still persists.
      I thought this allegation is only of a lay man who does not have knowledge of these technical terms. I found myself wonder you are a CMA…!

      4. Appointment of Mr Urjit Patel and removal of Mr. Raghuram Rajan as Governor of RBI:-

      a. Who had in fact REMOVED Mr. Raghuram Rajan as Governor of RBI?
      b. Has Mr. Raghuram Rajan as Governor of RBI made a statement that he had opposed the decision?

      5. After De-Monetization

      a. Some people believe that they successfully converted their black money into white by depositing cash upto Rs.2.5 Lakhs in different accounts. But it is not so. The game is just started. All deposits above Rs.50,000 will be reported to IT dept and they will be chased.
      I accept 20%- 30% black money holders may be escaped, but not more than that.

      b. It is not so easy to convert black money into white-
      – simply showing it as agricultural income.(since all transactions above Rs.50k is being tracked)

      – Investment in Gold-
      i- the investors will be booked when they make sale. and the price of gold will going to be diminishing, make a loss to the investors.
      ii- There was huge sale of gold on 8th evening- My doubt- the sellers can not simply escape from the trouble- they have to show it as their sale, pay income tax; (many are in real trouble of explaining quantitative data of their stock)

      – Donations to Political parties/ temple-
      i. Under Section 13-A, income by way of voluntary contributions to a political party is not taxed. This exemption can only be availed if the party in question maintains a book of accounts with respect to these contributions.
      ii. another doubt:- is it so easy to donate black money to temple/ political party and get it back as white money??? If yes, please let me know few means to do it…!

      – Other means which are being used…:-
      i. Through agents- In the chain, one person has to put the money into bank account to make it new currency. They will be caught. I accept about 20% of black money would have been converted as white.
      ii. Property being purchased & sold against old currency- In the chain, one person has to put the money into bank account to make it new currency.
      and the investor will be suffered huge loss due to reduction in value of land in coming period.

      – Allowed to pay taxes / Payment of Bank loans
      i. Any payment of tax have account and there is a limit too- you can not pay as much as you want.
      ii. All repayments of bank loan will be tracked.

      – Fake currency- I agree, there will be new fake currencies. But this could be curbed by stringent measures to ensure online payments on high value transactions.

      – I agree there are many difficulties to common man

      – negative effect on Retired Class Individuals
      Low rate of interest will lead to low cost of living, that will automatically adjusted. ( Getting high interest and High cost of living is equal to low interest and low cost of living)

      – The benefit demonetization will much more than the cost….:) Be optimistic..:)

  13. niran. says:

    Rs.500 and Rs.1000 now called SBN are not black. Black money is the wealth acquired for desirable, or socially undesirable activities( Dr./ smuggler), which were not taxed? Efforts should be made to unearth such wealth and tax appropriately.
    Demonetisation in parts for Utility bills is discrimination in favour if big players.
    All big deposits since April 2016 may be investigated 100 percent. Tax authorities should do it chronologically from 1.4.2016.
    Our nation has lost almost 100000 cr by reduced work, lower trade volumes, lower spending, lower tax collection, lower production, wage loss etc.
    This will create unemployment.
    Take time to rebuild.
    Till then 65% Indians are anti national! Non-Bharatiya. Demonetisation may be effective with working ATMs. Till adequate cash is given, all transports, school/ college fees, hospital fees, cremation charges should be free for all.

  14. Naresh sharma says:

    Will demonetization really lead to any significant change ?It may not:
    The elements of black money are :
    1. Election : All political parties indulge in money laundering during elections and otherwise.Huge hoarding are put up on birthdays of ministers,anniversaries etc
    2. Banned Items: Liqour ban and price regulations create black money
    3. Procedure o admissions to schools and colleges etc_ perpetuate black money
    4. Red Tapism and Authority Excercise : This creates black money
    5. Nefarious individual needs: This creates black money
    6. Agricultural Economy:Large part of agricultural land is owned by minuscule population creates black money
    Since Society cannot run without some controls, ad human needs are in built and people in power over have right to dictate masses, the menace o black money will continue
    Like Fountain, it will attain its own height
    :

  15. Anil says:

    Mr Bhalla.. I pity your wisdom. Let every one deposit his money by showing it as agricultural income, Naga tribal accounts or in Jandhan account. Let it come in system. PM wants this. Depositing money minutes before declaration is not possible as declaration was done at 8PM and all banks were closed by this time. Anyway money is being deposited in account…

  16. Sahil says:

    Being a chartered accountant, I completely agree with your article. My very initial response was very good move. But when I got the statistics my opinion changed and I was very much disappointed too for the political gain how a person who is worshiped like a God today in India can take such an hasty decision. As you mentioned even I too respect the Govt decision because I don’t want to see one more disaster on account of roll back.

  17. ganesh says:

    Hi,
    If there are 10 facts which tries to say that demonetization was not kept secret – what is the harm in that. Does any one have any evidence. Based on news article published in website – good work of the policy makers cannot be commented. In last 68 plus of independence, none dared to take such bold decision.
    Any critic is anti-social citizen. Demonetization was only a trailer but complete picture is unknown to one and all. Policy decision taken by Government under leadership of PM is to be supported by every patriotic Indian and constructive criticism will be acceptable and not otherwise. Look at the impact with policy change – so many activities has given livelihood to many sectors – right from zerox copying; cash transporting etc.
    Thomsas Friedman L – said that THE WORLD is FLAT. Let us contribute to nation building.
    Dear author – spend time to research on positives of Demonetization and avoid negative comments.
    Every action will have opposite reaction. GOVERNMENT OF INDIA – Slogan says – GOVERNMENT WORK IS GOD’S WORK – who are we to comment. Life is a circle and crooks will face consequences at appropriate time. What did Arvind Kejriwal say before Delhi election and what is he doing now – Jai Hind.

  18. YPS says:

    I fully agree with the writer. Since accounts of political parties do not come under RTI or Income Tax, they don’t have to disclose the reasons for such deposits. Moreover, there are so many other exemptions available at various levels e.g.to Trusts, Area based exemptions as in North East or to other states, etc.,even under Jan Dhan Yojna; their misuse by adopting various tactics cannot be ruled out.

  19. snehansu chaudhury says:

    world class economists , ex governor , express their views against the way of demonitation. After going through with their opinion , it is very easy to understand the decesion of our honoble PM was stands on emotion not based on economic parameter.
    How can one take such risk as per economist to bate one crore thirty thousand people life?

    • Ashok Kumar Agrawal says:

      Why all these so called world class economist, intellectuals are helpless while dealing with fake currencies, terror funding because doing analysis is one aspect but paying in front and taking risk is leadership.

      There so called intellectuals were always there in this world only then why not anyone analysed subprime crisis happened in past.

      To deal with any issue one need to have wisdom and risk taking ability. No one knows future but the leader or entrepreneur who takes risk based on his foresightedness can the society ahead. That is why today every where Modi Modi is being chanted. This has been accepted across the world with unanimity.
      Stop criticizing because it was till date after independence and start supporting the person who has guts to take decision.

  20. NIRAV MEHTA says:

    QUITE PESSIMISTIC VIEW. THIS BOLD STEP SHOULD TAKEN 10 YEARS BEFORE IN 2006 TO 2008. SOMEONE HAS TO TAKE THIS STEP WITHOUT POLITICAL FEAR. WHY THE EARLIER GOVERNMENT HAS NOT TAKEN THIS STEP? WHY EVERY TIME ANTICONGRESS GOVT. TAKE THIS STEP? THINK OVER IT.

    • N.K MOHANTY says:

      Mr. Mehta !
      do you know what is good governance ? What should be the primary responsibility of a ruler ?
      The govt, need to predict the outcomes well before instead of leaving people in lurch.

  21. KPS ELANGO says:

    Acceptable views written in the interest of general public. It is written in an analytical view. Appreciable in a democratic Country. We should welcome all sorts of opinions.

  22. adf says:

    baseless thought process

  23. Narinder vrawat says:

    Well written
    And what about reliance Jio against aadhaar card. A simple arrangement to convert black to white on aadhaar of so many people ????

  24. AAS says:

    Please keep writing such clear articles, give deaf ears to biased people! good luck

  25. Madhav says:

    Nice and very informative. These are the pertinent questions arising in the mind of common people.
    Demonitization could have well executed in a effective manner, for which depriving common man his right to his own money was not necessary. Any way all currencies will be exchanged through bank only and well accounted. IT have lot of checks and balances for that. I think RBi governor was not part of the team , who advised this drastic move. He is not seen and the Finance Secretary is taken his place.

  26. dr. guru Balakrishnan says:

    true it is.

  27. S.L.Goyal says:

    As Dr. Man Mohan Singh said “I do not disagree with the objective” but it’s implementation is faulty. Why can’t the implementation be improved in right earnestness – is there lack of political will or is it lack of management skill?

  28. Manish Gandhi says:

    NOT WORTH TO THINK ON IT. CRITICIZING, CRITICIZING, & CRITICIZING.

    ANY CREATIVE WORK CAN YOU DO?
    DO SOME CREATIVE THAN CRITISIZE.
    INDIA IS CHANGING SUPPORT THE CHANGE.

  29. Manish Sharma says:

    Wait, there will be more steps to root out corruption. Look at Kashmir, now peace is there.

  30. RAVIPRAKASH says:

    Nice article for the time. No body even great economist cannot predict the future of Indian economy. This move is towards cash less economy.

  31. Nagaraj G says:

    There could be a leakage of secrecy. Few politicians might have misused this & converted their black money into white. It is not correct to link the change of RBI governor to this Govt.’s move. Fake currency dealers might make the new currency also. All the deaths cannot be linked to this Demonetization. It might be true that black money cannot be completely eradicated. You may agree to the following facts:
    1. Is there any other step to eliminate black money other than demonetisation?
    2. Political blame game continues endlessly and whoever comes to the power will make money. How do we control this?
    3. Why should common man suffer because of rise in prices? while rich people find easy ways to evade taxes.
    4. Why general public should take the burden of rise in prices, increase in government taxes and be responsible for govt. losses/loss of govt revenues??
    5. High inflation is affecting only to the general public and not the culprits. Why?
    6. What is the way forward to bring our nation ahead?
    7. Farmers are attempting to suicide for various other reasons. What has been done by govt on this?
    8. If it continues the way which is going on now, common man cannot live in this nation. Do you think senior citizens can live with their small earnings of pension fund?

    It is agreed that demonetisation cannot completely eradicate the black money. But to some extent, it controls. This reduces the inflation and prices becomes reachable to mid/low class people. It puts the black money holders in a critical situation to dispense their money. It reduces terrorism activities to some extent. It reduces illegal activities/bribes to some extent.

    Your article gives completely a wrong message to common people. Please stop this & encourage demonetisation being a responsible citizen of India.

  32. K.LAKSHMAN says:

    While Demonetization is a good move to nullify black money,it has proved to be the last straw on the camel’s back in so far as the common man is concerned, as the banks are unable to provide him
    easy exchange facilities,the move thus proving a failure ascribable to faulty implementation of the
    proposal. This has surely caused a dent on the image of the Ruling Party at the centre.

  33. Pramod says:

    You are doing completely bakwas, my post also not shown. Raghuram Rajan was not removed, his time period was over. Don’t make such statements. I believe taxguru is a reliable firm and remove this fake article

  34. Vivek Mishra says:

    Dear Mr. Rakesh,
    I am a common man I do not know much about Financial terms but could you please answer my only one question.
    Que: Is there any plan with you to take out fake currency printed in Pakistan which facilitate Terrorists to disturb our country?
    If yes then answer if not then don’t write such type of articles in future.
    Pin pointing of any ones mistake is very easy but providing solution is quite tough.

  35. govind says:

    Demonetization may be good. But it is my money which is not black money kept in the bank and i cannot withdraw 10,000 for my need. The bank manager says he does not have money to give and always out of money.

  36. shivesh says:

    Dear Sir,
    Your article is nothing but articulation of all said on social and print media so far. Please note that any money deposited in any one’s account becomes white money as the said person has to be tax liable for the same and if any public servant, they have to take care of the Prevention of corruption act additionally. On write-off, please read the process and its implication

  37. Nilay prajapati says:

    Yes, I agreed with all these but don’t you think.. we should ask all these question at the time of UPA government..; where 2G scam, coal scam, Spectrum scam all these scams took place… yes all your questions are right, but why you don’t think other way side that after a long period the country like india get the leader like him who really have vision to get india developed.. non of us make any issue in last 70 years under the UPA government… so at least give this person little time and support this revolutionary moves.

  38. JAYESH JOSHI says:

    Six month before the process started meaning the other related rollouts like jandhan yagana etc

  39. Pankaj Nandawat says:

    I haven’t read the whole article but just seen first para whereas you told that BJP deposit so much crores in Bank prior to announcement. I unable to understand how it make any impact, you can deposit it now also or after 9th anytime, there is no restriction on deposition of amount even after announcement and deposition of amount is a bank entry so it’s not black money. Black money is being called which is being not routed through bank.

    Even if we agree with your view I feel that your whole opinion is against BJP and not demonetization. Where we are talking about broad impact of the policy we should not discuss how BJP benefited or some persons benefited, in totality the amount of anyone benefited is negligible against nation will got benefits from it during the years.
    We should appreciate the way it is implemented, I am common person and the problems shown above is not in reality. We are discussing about a common person who stands in line for whole day since last 70 year just get Kerossen, Chawal, Wheet etc.

  40. Umesh Agrawal says:

    Is completion of tenure is called ‘Removal’ ?, please clarify as this word frequently said in this article for Mr. Raghuram Rajan.

  41. jayashree says:

    taxguru should not allow such meaningless articles.

  42. Krish says:

    This is the only compilation of whats app/Facebook/Media jokes,articles & news letter. This proves how much the negative persons are in India. Nobody is providing further step of improvement or to reduce the corruption but the only questioning non-sense things.

  43. Someshwar Nath says:

    It is a biased and unresearched article.For example, the author has quoted ‘large amounts deposited by BJP units before 8th November. Has he tried to find out whether these were part of regular deposits made in a routine manner? No, he has just levelled an unsubstantiated allegation.
    On the whole, the article implies that if there have been some shortcomings in implementation of the scheme, it is better not to implement it and go on planning. This attitude has made the delivery mechanism in India one of the slowest. Indians are known for debating endlessly the merits and demerits of a scheme, thereby burying the scheme itself. We should learn from the Cuhinese in this regard.
    The argumentative Indian, indeed!

  44. Peter Rodrigues says:

    Nice and neutral view on the same. It seems you have a general view on the same and not biased with any side. Good Work. Keep it up!

    Many Common people are getting harassed and middle class people have tendency to save cash in home for children’s future or marriage. Average middle class can even keep cash like 5 Lakhs in house.

    • vivek Mishra says:

      Dear Mr. Peter,
      Rs. 5 Lakh. target for middle class is quite tough.
      I am in lower middle class group in this and in middle class group most of the persons I know are techno savvy and have faith in online transactions no one is keeping cash more than ten thousand at home in any way.
      Regards

  45. CA Darshil Safi says:

    Question is Is it really written by a Qualified CA?

  46. Ahmed says:

    Well Said

  47. HARIOM SHARMA says:

    DEMONETISATION CONCEPT IS NOT NEW IN U.P. SALES TAX DEPARTMENT ALSO HAVE USED TO CHANGE DESIGN OF UP SALES TAX ROAD PERMITS TO DO A GOOD MONITORING. Hon. Governor has been retired and the things are on black and white being a professional anybody do not have power to question on PMO . Questioning baseless questions is in itself reflects a lack of wisdom by dear member.

  48. Sweetlene says:

    Excellent Article. An Eye Opener

  49. Raj Kumar says:

    I fully agree with you. Since demonitisation started we are yet to see any political leader or government official of any rank being booked for unaccounted money. There are various persons as stated in your articles who are converting money for other and government is yet to take any action while the common man is suffering. The government wants families of bride and groom to get declaration from caterers and decorators etc that they have no bank account why can the government machinery not find this out? furthers doctors etc indulging in malicious practices of taking medicine etc in advance to convert the money. Inflation is waiting to happen and common man sufferings increase at least this measure could send BJP out of power for the next 50 years. Last year when IT return contained a disclosure on foreign travel there was so much ruckus it got deleted. It shows common man has no voice. I think the said schedule should have been retained and if properly used it could have helped in tracing people with unaccounted money but the government chose otherwise.

  50. prabhat saxena says:

    Checked Dainik Jagran, but could not locate the news of the demonetization.

    Please mention the edition and the page number.

    • vivek Mishra says:

      Dear Mr. Prabhat,
      Mr. Rakesh wont written all this at his own he is telling us all this which he got from social media not even using his so talented mind.
      This is Hard luck of our country that we Indians don’t even go for any thought process after reading anything, and believe all that without knowing origin of that writeup/passage which we read.

    • Rakesh Bhalla says:

      Please send your e-mail id, i will send you the copy of the newspaper portion referred in my article

    • Rakesh Bhalla says:

      Please provide your e-mail id, i will be sending the copy of the news published, as referred in my article

  51. ABCD says:

    Good article with detailed information (doubt) against bold decision made for the country as whole.

  52. sachin says:

    Dear Taxguru

    Please don’t waste time in such articles.

    regards
    sachin

  53. SUDHIR says:

    Looks like not a professional article ..but a criticising research

  54. SOUBHAGYA BHOL says:

    DIFFERENCE IN THOUGHT WILL BE THERE .
    A PRIME MINISTER OF INDIA AND ANY OTHER PERSON IN INDIA.

    LEARN HOW TO ACCEPT .

    DO YOU KNOW , HOW MUCH TIME THE PRIME MINISTER OF INDIA WORKING FOR THE COUNTRY

    YOU KNOW VERY WELL THAT , HOW MUCH TIME YOU WORK FOR YOUR OWN INTEREST

  55. Sudhama says:

    Dear Tax Guru,
    Stop writing useless and misguided article of demonetization everyday. By this time everyone is convinced what is right and what is wrong.

  56. P K Sundaresan says:

    Hello Mr Bhalla,

    This is only the first step. Many more steps to prevent further accumulation of black money will be taken by the Govt. You are entitled to your view. If demonitization is not the right solution to this menance, what is your suggestion on any better alternative? Or you want to live with this growing menace?

  57. Nitin says:

    So, what is the alternative solution? Every body seems happy criticizing the step, but nobody is bothered to provide alternatives.

  58. Pawan says:

    Wow! You have given words to all my thoughts.
    THANK U SO MUCH

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