Is demonetization the best option to eliminate black money?

JANUARY 2017 TOPIC: Is demonetization the best option to eliminate black money?

The government’s demonetization of Rs 500 and Rs 1000 notes is a contentious issue, but is understandable. The question is not whether the government is right in demonetizing the currency; instead, the concerns are centered on why they adopted this chaotic and surreptitious approach. In my opinion, this step is not enough to stop black money. Gone are the days when people hoarded wealth in gunny bags full of banknotes. In today’s world, there are refined ways of laundering money or stashing it away in offshore bank accounts and foreign currency. This has affected the common people rather than the ones it was supposed to.
Sarah Chaudhary (14)
Mary Immaculate Girls’ High School, Mumbai

India has a reasonable tax regime with the maximum tax rate on high-incomes at 33% as compared to the U.S. where it is already at 39%. The question therefore is why those who should pay taxes are not paying taxes. A focus on better tax reforms to find out where the undeclared money is would benefit the economy. Demonetization in itself is not the best option to eliminate black money, mainly because the clever would find ways to get out of it.
Kimberly Rowe (21)
EMDI Institute of Media & Communication, Mumbai

I can’t say it is the best! But it is one of the methods which might have shaken big pockets a bit. It was a brave decision and hopefully it will bring some good results. It’s not the first time that a government of a country has come up with such a bold decision. In Zimbabwe, the one hundred trillion dollar note was demonetized!
Milan Patel
Saranathan College of Engineering, Tiruchirappalli

According to me, demonetization is a political move wherein Modi has played quite smart. I don’t feel that black money has actually come out because the corrupt have their ways of turning all their black money into white. Modi has been successful in showing people its benefits whereas in the real sense the problem might be completely different. It does have merits and demerits, but it would be interesting to see how it would affect the economy in 2017.
Shivangi Desai (20)
Nagindas Khandwala College, Mumbai

Yes, demonetization is the best way to eliminate black money from India. The politicians have looted the country and have divided people for votes. There was more inflation and less employment. Corruption had made the country an empty shell. Now due to demonetization, the standard of living of the common man will rise. The country is heading towards a revolution. It will help the government track people having large sums of unaccounted cash. Also, when people disclose their income in banks, a handsome amount of tax revenue will be collected and used for the betterment of the nation.
Pahul Sond (18)
MGN UE 2, Jalandhar

No, demonetization is not the ‘best’ option to eliminate black money in India. But it could be considered as an initiative taken by the government to end corruption. For years India has been facing the problem of corruption. Demonetization will help in realizing a ‘cashless India’, but there is no guarantee that the new notes will not be turned into black money in future. Many more initiatives are needed to eliminate black money. India is slowly changing. And I respect this initiative taken by our Prime Minister.
Yukti Singhal (13)
St Anthony’s Junior College, Agra

Demonetization cannot help to eliminate black money. It is only the common man who is suffering whereas the one who has bags of black money is not worried and is leading a lavish life. So many deaths have taken place because people are not able to pay hospital bills with old currency, farmers have committed suicide, people having weddings are facing problems, lower middle class people are not able to fulfil their basic needs, the list is endless. If our government implements the concept of demonetization in an appropriate manner, only then can it help eliminate black money.
Alisha Agarwal (14)
St Anthony’s Junior College, Agra

No country has successfully curbed black money even after demonetization. I feel that it is important to learn from the past mistakes and not to repeat them. On the other hand, I think it’s a bit too early to draw conclusions. We could be the first country to curb black money successfully.
Christina Malsawmkimi
St Stephen’s College, New Delhi

I support the government’s decision to demonetize currency. This step is a big blow to black marketers and those who have black money. There is no objection to demonetization, but the procedure could have been different. It is causing temporary inconvenience to the common man, but it would be highly beneficial in the longer run. Demonetization has many benefits like, black money stored in the form of Rs 500 and Rs 1000 notes will be taken out of our system and fake Indian currency notes network will be dismantled. Demonetization could have far-reaching effects.
Adya Singh (12)
St Anthony’s Jr College, Agra

Demonetization might not be the best way but it is certainly a good way to start the battle against black money. It is one of the few remarkable steps taken by the Modi government. Surely it has its drawbacks and loopholes. It is a must step considering Donald Trump’s mysterious foreign policy, a war-thirsty Pakistan to deal with and China’s adverse economic strategies. Even though many people are complaining about the monetary problems because of the ‘mismanaged’ scheme, can’t they tolerate this small prick for a few days? After all, is it not for the greater good?
Akshita Toshniwal
Sophia Sr. Sec. School, Ajmer

Yes, demonetization is a good option to wipe out the black money present in the market as well as to welcome new ways of spending and earning through cashless transactions such as e-wallets, Paytm, etc. It also blocks the fake Indian currency network and the funding of terrorism. Real estate prices may also see a sharp drop due to fall in black incomes. No doubt the public is facing minor problems, but this could be a game-changer for India.
Shubhi Goyal

Though demonetization was a good idea to eradicate black money, it was introduced without appropriate planning. Initially people welcomed the decision but later the response changed. Only time will say what is the real outcome. There was 17 lakh crore currency in circulation of which 14 lakh crore was higher denomination notes (Rs 500 and Rs 1000) and according to the RBI rupees 400 crore was believed to be fake currency. So, to destroy 400 crore fake currency the circulation of 14 lakh crore was blocked. The poor suffered while the rich made their black money to white. The super rich were left unscratched. Only poor people had untold misery and loss. No rich person was seen in a bank queue. You should not set fire to the house to kill the mosquitoes.
Shashank Shekhar (13)
Jeevan Marg Sophia Secondary School, Deoria