Modi's Biggest Reform and Surgical Strike to Indian Economy

New currency note will somewhat look like this.

Prime Minister’s sudden decision to ban currency note in a span of 4 hours is a historical bold step in Indian economy. After 8pm suddenly Prime Minister announced this bold decision to discontinue currency notes effective from midnight of the same day. There are mixed reaction from the Indian public after government’s sudden move.

Will it reduce corruption, black money and fake currency? The answer is it will completely check fake currencies which are already circulated in the market. It may reduce corruption and certainly a big node to the tax-evaders.

Those who accumulated a huge sum of black money at home has to deposit their black money to the bank which will be taxable in future. So one cannot hide his money any more. Bank will also deny to deposit more than Rs 50000 in day with valid linked PAN card with the account.

Common people will face bit pain for the time being. This is a one-step away to encourage online transaction. Government initially opened bank account to every citizen and those who want transaction of big sum has to access through online.


Introduction of new currency worth Rs 2000 in place of existing Rs 1000 is another bold step. In this current scenario, it is very difficult to assume whether this decision will prove right in future. Above all, as per Prime Minister’s version, " Experience tells us that ordinary citizens are always ready to make sacrifices and face difficulties for the benefit of the nation." So common people are habituated to take pain and they will take this pain for the time being but this abrupt decision will of course be shaken to the big tax evaders.

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