With the announcement of the Hon’ble Prime Minister banning Indian Currency of Rs. 500 & Rs. 1000, the Voluntary Disclosure of Income Scheme, gold monetization scheme, opening of bank accounts, etc. everything seems to have fallen in place. This proves that it is not just an impromptu decision taken by the government, It was a move planned long back and all the steps taken till now were just a facilitator of this final step.

This step will prove to be a major blow to:

• Black Marketers
• Terrorists & Anti National Activities
• Fake Currency Markets
• Real Estate

How will this step benefit India and its nationals?

1. Arms smuggling, undercover activities and terrorist related activities will be Paralyzed due to lack of funding. This is most important advantage to the country.
2. It will help the government to fight Black money, corruption, terrorism and counterfeit currency with one single decision.
3. Rupee will strengthen over-time as Inflation will go down which will benefit poor and middle class people.
4. Investments in gold and jewelries will increase, eventually increasing investment in the government’s gold monetization scheme.
5. Rise in plastic money like debit card, credit card, online transactions.
6. All cash whether in a normal household, reported, un-reported will come on records.

Although this move will hamper normal day to day routine activities for a few days, creating havoc and panic in the nation, but very soon, it will prove to be a clear win-win situation for a common man, who was till now suffering the negatives impacts of the parallel economy. As a responsible citizen the need of the hour is to extend full support to this initiative and help achieve the benefits of this move and ultimately contribute towards India becoming a paperless economy.

CS Ankita Jain

Associate member of Institute of Company Secretaries of India (ICSI) having more than 3 years of experience in managing Corporate Laws and Research. Presently Manager-Compliance with LexComply.com leading the Customer Orientation and Training with an additional charge of LexComply Quality Test and Controls.