Response to The Critics Of Demonetisation In India

Any slackening of demonetization measure will only satisfy the  business men and the black money holders who are well spread throughout the country in various measures and remain powerful due to their black money power.

by N.S.Venkataraman      

( December 10, 2016, Chennai, Sri Lanka Guardian) 1. What critics say ?
Only 10% of people have black money but 100% people are inconvenienced by demonetization.

Clarification :

It is not true that only 10% of people  have black money. The  black money is well spread amongst people in the upper and middle income group in various forms all over India. Every fellow who takes bribe is a black money holder. Every person who evades tax is a black money holder. Many people in the upper and middle income group are known to  take bribe money or pay bribe money or evade tax or conceal real income to reduce tax. Black money among such people also need to be brought out.

2. What critics say ?
The government has not planned properly


Government has planned quite well and Mr. Modi announced  that people have to bear for fifty days and it is a fifty day plan.

Several times,  it has been explained that new currency printing exercise can start in a big way only after announcing demonetization to maintain secrecy.

New currency is being released every day and  the suffering of the people are reducing day by day. This is clearly evident now.

Release of new currency  notes  would be completed in fifty days to a reasonably comfort level, when the sufferings of people will go away and in the process bring relief to see gradual success of movement towards less and less corruption.

It may be noted that there is no need to print around Rs.14.2 lakh crore of new currency notes , which was the amount withdrawn by demonetization.

With the black money gone and more people getting into digital mode of payment, currency requirement will be less  atleast by 20%.

3. What critics say
Estimation of black money and fake currency  in circulation wrong

Clarification :

This was an estimate and nobody knows clearly. Neither the government nor the critics. This will be clearly known only after fifty days.

4.  What critics say
Most of the black money is not in the form of cash but real estate and gold. Why Mr. Modi is targeting cash only?


Eliminating corruption in India has to be done in stages. When black money is curtailed and with  the available black money with people becoming less and less , the value of real estate which is mostly done by black money would automatically come down.Black money holders will lose heavily. This is already  happening.

Please await the implementation of measures to put down the benami land holdings. Spectacular results can be felt before long

5. What critics say
Poor people and wage earners are suffering.

Clarification :

It is true that poor people have temporarily suffered in the initial thirty days.

But, it is gratifying that many of them feel that there is need to initiate drastic steps to put down corruption and black money and they want demonetization to succeed. Poor people realise that they are the worst hit due to the widespread corruption in India. Those who interact with poor people know this.

Some politicians predicted that there would be riots on 1st December, the pay day. Even the learned judge who is supposed to know better made similar statement.  Nothing of this sort has happened. When opposition parties called for nationwide bandh, it was a flop, reflecting the mood of the people including the deprived class.

Media is creating panic atmosphere, instead of explaining to the people about the issues in a responsible way. One cannot ignore the fact that considerable segment of Indian media is under the control of politicians and business men.

Appeal to the critics

People  have been asking for firm steps to root out corruption for the last several decades. Possibly, all wanted  that corruption should  be eliminated in a painless manner.

The demonetization exercise is the least painful way of removing black money and putting down corruption firmly. Demonetisation inevitably lead to greater digital  mode, which will do a lot of good to the cause of less corrupt India  in the course of time.

If we lose this opportunity now to remove black money, the country will not be able to do it  in the foreseeable future.

There is nothing wrong in one being a critic. But why not be a constructive critic?

So far, none of the critics who want black money to be removed but disagree with the demonetization measure, have suggested any better alternative plans.

Any slackening of demonetization measure will only satisfy the  business men and the black money holders who are well spread throughout the country in various measures and remain powerful due to their black money power.

There is already an unholy trio of small section of bank staff, business men and  chartered accountants, who have managed to take out  millions of rupees of new currency notes to hoard them ,by using their evil genius.  Anti corruption crusaders should help the government by pointing out such unholy trio. Let the critics become anti corruption activists and help the cause.


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