It’s been 14 days since the Prime Minister had announced the ban of Rs.500 and Rs.1000 notes. The day announcement was made, I heard a lot of people saying that people will definitely find loopholes and save their money. Unfortunately all their dreams were shattered to bypass the system as the government did just stop there. Everyday there’s a new announcement which curbs the so called “new bypass ways” of the people to save their black money. As I said I’ll be sharing my views on what would be the impact of currency ban in 10 Days -10 Months – 10 Years; so here are my views on currency ban impact in next 10 months.
If you’ve invested money in real estate or are connected to real estate companies; you must be knowing that the real estate prices are already seeing a downfall. The real estate market has come to a halt and the panic can be seen as amongst the real estate owners as most of the unaccounted money has been parked in properties.
Contrary to this; it’s a good news for all those honest tax payers who have been longing to buy their own homes as few months back the property prices were touching skies and had become unviable for the aam aadmi.
Corruption Under Check
Not just the businessmen but the demonetization has shook the bureaucrats and as well as the political parties which would help to curb the corruption deep rooted in the system. No cash means no bribes. Though some may argue that the corruption would again start with the new currency and to some extent it may; but it would not be that easy to do so.
Change in Tax Regime
In coming months or may be next year we might see some major changes in tax regime such as once cannot hold more cash than a particular limit say Rs. 10 lacs and if found more than 10, it may be a non-bailable offence. One may also see restriction on withdrawal from bank as it is there right now so that any big payments are made thru electronic medium only.
Considering the recent changes in income tax it seems that government will soon come up with various regulations wherein one is mandated to use electronic modes such as bank transfers, debit/ credit cards or mobile wallets etc for all the financial transactions whether it is business or personal transactions.
Looks like almost every Indian will soon have bank accounts or mobile wallets etc.
Surge in Digital Payment Modes
We have already started seeing a surge in transactions through electronic mode of payments be it through debit/ credit cards or mobile wallets etc. It still may not be the preferred source amongst some business sectors in the country but most of the people are already cognizant of the fact that it would not be easy to do business with cash anymore and have already started accepting payments through these sources even if it means that they will have to pay higher taxes.
Terrorism Under Control
Money has been the prime reason for spread of terrorism in the country and nothing comes for free. So with no cash it will be difficult to influence people to execute the plans.
Oh Yes! With all this, we might see inflation coming down which in turn may cause the interest rates to fall down.
The cash crunch seems to be getting better as the new currency is already in circulation. With time things will get better; things like these do cause short term pains but believe me they are here to give the aam aadmi the long term gains. (PS. aam aadmi at any point does mean AAP ;))