Economic Uncertainty & The Indians

       A great, bold, unexpected and sudden announcement made by the Indian Prime Minister Narendra Modi to withdrawal of Rs 500/- and Rs. 1000/- currency notes from the midnight of 8^th November.

    I think there are three reasons behind it mostly. It seems to me these reasons are distinct and interrelated.

1. Restricting the hoarding of cash as blackmoney.
2. Curtailing the use of cash to finance terrorist activities and illegal transactions as in the narcotics market.

3. Teasing out counterfeited notes which are in circulation.

    This trio plays the most important role in social, political and economic losses for the nation.

     In the Indian market people are always used the currency note of Rs. 500/- and Rs. 1000/- but within a few hours it became only a pice of paper. How many people depend on the electronic money of cheques, drafts and credit cards?

      The common people facing the most problematic situation due to this sudden decision. The bank and post office trying to do their best for tackling this emergency situation. But most worrying of all, will bank and post offices have enough new currency note in the next few days to meet the demand? There are a huge crowd in front of every bank in India,  people are facing too many hazards to collect of exchange the money everyday. But it is expected , that the rush is going on severe in the first few days and few days later it will be in normalize.

      But now the most valuable question arises in the in the mind of Indians that is it only a political gimmick of Indian Govt. or will it be able to meet its objectives of curbing the shadow economy? It is clear to the Indians that they should have to enter in the banking stream to save their hoaring money.

       So, as an Indian now we need to wait and see, time will tell us the truth either economy will become a strong position in India or not?