More

    Demonetisation poorly thought out, executed: New York Times

    Must Read

    BJP Councillor in Vadodara openly violate social distancing rule during birthday celebration

    BJP leaders are seems to be not taking the lessons and organise programmes without maintaining any Covid...

    181 Abhiyam Mahila Helpline perform role of hygiene warrior

    Explain a woman in Savli the responsibility of maintaining cleanliness in the villa Normally...

    Patients from outside Vadodara cremated in city following Covid 19 protocol

    OSD Dr. Vinod Rao informed that In the last 19 days of September, 160 persons from outside...

     

    The demonetisation of high value Indian currency that has caused chaos “was poorly thought out and executed”, the New York Times said on Friday.

    Saying the decision to scrap the old Rs 500 and 1,000 notes had thrown the economy into turmoil, the Times said the Narendra Modi government did not appreciate the extent of the pain it would inflict.

    “The government has begun circulating new 500 and 2,000 rupee notes, which means that cash-based corruption and tax evasion are almost sure to return as people accumulate the new bills,” it said in an editorial.

    Modi announced the demonetisation on the night of November 8 as part of a campaign against corruption and black money.

    Patna: People queue up at an ATM in Patna on Saturday. PTI photo(PTI11_12_2016_000101B)

    The Times pointed out that cash was king in India, used in an estimated 78 per cent of transactions, compared with 20-25 per cent in industrialized countries like Britain and the US.

    “Many people (in India) do not have bank accounts or credit cards, and even those who do often must use cash because many businesses don’t accept other forms of payment,” it said.

    The Times said Modi’s solution to a systemic problem was an odd one.

    The demonetisation, it said, was meant to force tax evaders and corrupt officials hoarding cash to deposit or exchange their old notes at banks by December 30.

    Those with very large sums would be forced to explain how they amassed so much cash and pay taxes owed on the money.

    “That was the plan. The change, however, has thrown the economy into turmoil, with many millions of people forced to line up at banks to deposit or exchange their old bills…

    “Meanwhile, many traders have established lucrative money-laundering services to help the cash-rich get rid of their old bills.

    “Modi acknowledged that the currency swap would cause ‘temporary hardships’ to ‘honest citizens’.

    “But his government did not appreciate the extent of the pain it would inflict, for what may be only a short-term solution,” it added.

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    This site uses Akismet to reduce spam. Learn how your comment data is processed.

    Latest News

    Rajya Sabha passes Epidemic Diseases (Amendment) Bill, 2020

    Rajya Sabha today passed the Epidemic Diseases (Amendment) Bill, 2020. The Bill amends the Epidemic Diseases Act,...

    181 Abhiyam Mahila Helpline perform role of hygiene warrior

    Explain a woman in Savli the responsibility of maintaining cleanliness in the villa Normally the 181 Abhayam Women's Helpline...

    Patients from outside Vadodara cremated in city following Covid 19 protocol

    OSD Dr. Vinod Rao informed that In the last 19 days of September, 160 persons from outside Vadodara district who passed away...
    video

    Waghodia MLA Madhu Shrivastav dance without mask in Bhajan Sandhya

    Recently discharged from hospital after Covid 19 treatment A dance video of Waghodia MLA Madhu Shrivastav goes viral on...

    Covid 19 cases reached 10559 in Vadodara after 132 new cases on Sunday

    Covid 19 cases in Vadodara reached 10559 after 132 cases registered in last 24 hours. Total 70 patients discharged from hospital which...

    More Articles Like This

    - Advertisement -