Some may salute Indian Prime Minister Narendra Modi for banning the two biggest denomination currency notes in the country to curb black money and some may criticize for pains that came as an aftermath. Let us have a lighter look to those:
Economy of India would be improved in the long run as more people will be paying income tax. Currently only 1 percent of Indians pay it. The Modi government could henceforth spend more on housing, health and education. The liquidity problems of Indian banks could be solved and the toxic loans phenomenon to come under control. Those who are still without bank accounts could be forced to open one. Ineternet startups are cashing in on the opportunity.
The poor circulation of currency is making difficult for small and medium-size business to operate like paying for raw material costs and daily wages. People are booking expensive train and flight tickets with old banned currency notes, as allowed for a certain period, and canceling those to get refund in new notes. This resulted with another move of not refunding in cash by Indian Railways. Gold prices have hiked as many with black money have started buying jewelries. Weddings are getting postponed.
Long queues in front of ATMs and banks are turning fatal for many. It is reported doctors have denied treatment too as patients were with old banned currency notes. A rape victim couldn’t get to hospital as ambulance driver refused to accept those currency from the parents. In another case a husband is alleged to have murdered his wife for returning without cash even after waiting for long at ATM.