Are banks and government fooling Indians for revenue?
I have a doubt that government fooling Indians for revenue. It has been about nine months of demonetization and we should be expecting life back to normal as per our dear Prime Minister Mr. Modi. At least if you go by the official statements made by BJP government everything is running smooth. I could have written it long back but it is always good to first analyze something well before posting and I think 9 months is a good time when people will be able to relate. I just wanted to understand real after effects of demonetization.
How government fooling Indians for revenue
Some might agree and some may not but it is not in real. Other than those unknown good things that happened due to demonetization (because the government is yet to release data about positive effects of this move other than winning UP elections) here are some known things.
Most Indians who do not belong to “Rich & Famous”
Worst hit was common man who had to stand in long queue, taking leave from office just to get some cash for daily expenses.
Huge business loss due to demonetization
I personally know many instances where companies either got shut down or had huge loss due to demonetization during this transformation. Since people were saving money for emergency so they preferred to save. As a reader you might be on the safer side but imagine the situation of daily wage workers.
Job loss due to demonetization
Governments are supposed to give employment but here many people lost their jobs. The job loss due to demonetization was so huge and drastic that you cannot fulfill the gap in next 5 years.
Many people died while standing in queues during this time as reported by some leading media houses. Government may say that few sacrifices have to be made to get victory. But when these sacrifices are for political benefit, it should be questioned.
Increase in corruption
Now this is interesting. Government is yet to release data but for sure many people used corrupt practices to exchange notes and some were even caught. Many bankers were involved in the process and poor people also took some share for standing in queue.
Top Gainers in Demonetization
Here is a list of top gainers in demonetization. Most of them are still gaining.
By this masterstroke current ruling government got immediate benefit when people started believing that they are fighting against corruption. In some states they actually transformed into big election wins.
Banks fooling Indians
Before this banks were struggling to get their NPA settled. On the name of loan settlement banks only crucify middle class people and the practice is still there. You miss three EMI even it is less than 10,000 it is considered as NPA but in real their money was kept by big bosses of industry. With this move banks got instant money. And the money will now belong to banks (indirectly because they policies will keep the money in system). But you can also get some cash in case of emergency.
Is the situation normal now?
Actually Not! Wait before you stop doubting me. There is cash but read this before making an opinion
There are charges if you transact with other bank.
Go to your bank ATM and most of the time only limited is working. If you need cash you will use it to take out money. I have personally seen people moving ATM to ATM in August 2017, post 9 months of this move.
Now imagine if once transaction will cost 10 rupees and just 5% of Indians use ATM card on a daily bases. May be banks have done offline settlements to ensure everyone gets their share.
Banks are earning millions per day without putting any extra penny on marketing. Previously it was considered as part of their service. Now there are service charges, more charges and more charges.
Imagine how much fuel people are burning when moving ATM to ATM. Good news for companies like IOC.
But at least stop fooling us. We understand this and expect truth from our government.
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