What's your opinion about the decision on removal of 500 and 1000 rupees currency notes?

The decision to remove the 500 and 1000 rupee currency notes in India, announced by Prime Minister Narendra Modi on November 8, 2016, was a complex and controversial move. Here are some key points to consider:

Objectives and Rationale

• Anti-Corruption and Black Money: The primary goal was to combat corruption and reduce the use of black money by eliminating high-denomination notes, which were believed to facilitate illegal transactions4.
• Promoting Digital Economy: It aimed to encourage cashless transactions and increase financial inclusion4.

Impact and Outcomes

• Economic Disruption: The move led to significant economic disruption, including cash shortages, long queues at banks, and a reported 82 deaths4. It negatively affected small businesses and rural areas heavily reliant on cash transactions34.
• Failure to Reduce Black Money: Despite the effort, nearly 99.3% of the demonetized currency was deposited back into banks, indicating that the strategy did not effectively remove black money from circulation4.
• Economic Growth: The demonetization was associated with a decline in India's GDP growth rate and industrial production, with estimates suggesting the loss of about 1.5 million jobs4.

Reactions and Criticisms

• Mixed Reactions: While some supported the move as a bold step against corruption, others criticized it for being poorly planned and executed, causing hardship to ordinary citizens4.
• Economic Critique: Many economists, including Nobel laureates like Amartya Sen and Paul Krugman, criticized the policy as ineffective and damaging to the economy4.

Overall, while the intention behind the decision was to tackle corruption and promote a digital economy, its execution and outcomes were widely criticized for causing unnecessary hardship and failing to achieve its primary objectives.