It refers to currency-crunch generated because of rupees-2000 notes not coming back to banks. It is clear that these much-criticized notes have become a convenient parking place for hoarders of black money, thus killing the very purpose of demonetization of earlier notes of rupees 500 and 1000 on 08.11.2016. Instead of fearing from criticism, Prime Minister can announce a sudden demonetization of rupees-2000 notes also as a caution that such steps can even be frequent in case those playing in black money do not do away with their business of creating parallel economy of black money.
Unlike earlier demonetization of 08.11.2016, any such fresh demonetization will not practically affect commoners because ordinary people avoid accepting rupees-2000 notes and as such these may not be in plenty with commoners. Moreover government will not to do any preparations like massive currency-printing like was done earlier because currency in other denominations is available in plenty. It is significant that undesired denomination of rupees-2000 was a compulsion to meet instant demand of currency after demonetization announced on 08.11.2016. However past experience of faulty implementation of demonetization should make government announce any voluntary-disclosure-scheme announced simultaneously with announcement of demonetization.
But at the same time to prevent habit of currency-hoarding, concentration to restrict currency-circulation should be for larger amounts rather than petty amounts. Maximum cash-withdrawal from banks by an individual should be restricted to rupees 96000 to be gradually reduced to rupees 50000 per month. Even stricter steps should be taken to have vigil on cash withdrawals by companies and private firms.
Subash Chandra Agrawal
N?ew Delhi
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