Saturday, December 24, 2016

Demonetization - good or bad?

The Indian government implemented a new rule called ‘demonetization’, basically to attack corruptions and to raid black money holders. But practically, the plan affected more to common people rather than black money holders. Neither, I am against of this rule nor saying it is bad, but the process they followed, seems they haven’t done a proper analysis of situations. Or in other word it will not be wrong to say that government has implemented it by considering:
  1. Facilities at every location in India, are equivalent as in metro cities.
  2. Literacy of every person in India are high and equivalent.


Let’s do some rough analysis, average literacy in India is approx. 70-72%, among that in many states the literacy is below 60%. Nevertheless, out of this 70% of the literacy rate, maximum people are either not aware with digital world (card/cashless payment) or they do not have such facilities (high speed network or related devices).

Second and most import thing, in India many states neither have electricity nor proper mobile network, forget about high speed broadband/3G/4G. They used to step-up to some one’s open terrace or somewhere in open field to search out network in their hand phone, if they have.

Most of the villagers still depend on timely bus transportation to go to nearby small town, to purchase their daily needs where buses are either less available or not available. Small town don’t have ATM facilities, in case ATM available but chances are- either those are out of service or do not have cash. Some people do not have debit card; some are not aware to use card payment process. In small towns, they do not have options for any cashless payment options due to unavailability of electricity and proper network. They depend only on cash for their daily activities like fare, purchasing of daily needs, medicines, and other purchasing etc. Now let’s discuss about few questions:

  1. How to handle such situations where there is no electricity, no mobile network, no or less ATM and banking services, where the people need used to nearby town by wasting whole day, to purchase their needs?
  2. How those people can handle situation who do not have debit/credit cards, who are not aware with cashless services or cashless facilities are not available?
  3. How those 30% people will handle the situation who are not literate and those who do not have cashless options?
  4. Airplanes & major train reservation counters might have cashless facilities but local buses and autos don’t have such options, how to pay the fare in these places?
  5. Road side vegetable sellers won’t have cashless facility, then where the poor people will go to purchase such things? If I am not wrong, up to middle class people too generally purchase vegetables from road side only.
  6. Villages do not have proper road, ATM and bank services. How they can prefer to go to nearby town to search for cash? How they feel when finally, they see a hanging board on the door “ATM is out of service or no cash”. Even the bankers too now days say the same statements.


Hope you can realize now what I wish to say and why I said that common people affected more rather than black money holders. Acting against corruption is good, but giving unnecessary troubles to all innocents for few corrupted systems are not good. If you are an active person then you might have observed most of the corrupted systems belongs to government body or related members, bankers, business persons etc. Therefore, before taking a big decision, you must analyze all aspects by your own. You may disagree on my views, but it’s fact that none of the government can understand problems of common people.

If you wish to dream for cashless, you must cover following things before:
  1. All cities, towns & villages must have equal facilities.
  2. Literacy of the country must be 100%.
  3. You must not charge additionally 1% and 2% in terms of card payment, one side they are forcing for cashless while in other side they add card swapping charges. This is one of the great plan introduced by government to suck money from public account. You have paid income tax, sale tax, service tax, swatchh Bharat tax,and now paying 2% extra for cashless payment. Simply great governance. It happens only in India!