On this very day two years ago, a meeting of the Reserve Bank of India’s (RBI) Central Board was called hurriedly in New Delhi at 5.30 pm on November 8, 2016 in which the Central Bank’s directors admired the government’s move but also warned that demonetization will have a short-term negative effect on the GDP for the current year. The RBI directors also argued that the government’s idea of withdrawal of high denomination currency notes of 1,000 and 500 to curb black money and restrict circulation of counterfeit cash did not sound good.
The ministry informed the board that 400 crores of old currency are forfeited on which the board said that the claimed forfeited amount as a percentage of the total quantum of currency in circulation is not appealing.
The historic date of 8 November again came this year and PM Modi skipped to mention his great step to fight against black money. He always mentions even the smallest thing dedicated to the country in his tweets. Whenever the government has a scope for getting a little bit of credit, he is never behind.
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This time too, the country was waiting for the congratulating tweets for those who stood in long lines and the bank staffs who sacrificed their leaves by working for 22-24 hours for the betterment of their nation. People were waiting for PM to once again address the country and express gratitude to the public for throwing out black money.
On the eve of the second anniversary of the note-ban, making fun of terms like the cashless economy and black money, four people were arrested and a sum of seven and a half million unaccounted money was seized by Hyderabad Task Force from them. Although, these things cannot do much to prove that the ‘notebandi’ was a clear flop, but no expected tweets from PM’s side on this historic date really breaks the courage.
And yes. At this time there is more cash in the market than before the note-ban. It was PM Modi himself who announced the ban. Two years later, he does not take its name in any way. Of course, the Finance Minister, while giving clearance, is printing articles in newspapers that the ban has increased the tax collection; black money is all under control and many more statements.
So is it really like that PM Modi is also accepting the figures provided by RBI and the facts that are spread around the country about the failure of demonetisation? Let’s wait and watch.