Demonetization is happening… and it’s for real. However confusing it is as the government is changing norms daily for note change. Sometimes its Rs 4K than 4.5K than changed to 2K and god knows what it will be tomorrow. Demonetization is a huge project involving 2.5 Lakhs bank branches, 3 lakhs ATMs, 1.55 Lakhs, 55 SBI currency chests, 19 RBI offices and 1.3 billion people.
We are all set to replace 87% of currency in 50 days. But looking at the long term benefits like black money elimination, inflation control, corruption tackling, putting a barrier to terrorist funding and healthy fiscal balance, I think this is a great move. Although all kind of people exists in our country and this will be a challenge for some especially who live on daily money, with less financial inclusion and no savings.
One in possession of unaccounted money is busy finding ways to convert black to white and then black again. Dubious schemes are unfolding and people who have been honest and paying taxes are lured to help these miscreants for some payout. Righteousness has lost meaning when I see a patriotic CAs, telling his clients about these illegal ways.
Social media, as usual, is without control and we are hearing (surfing or reading) a lot of bogus things. But that is why it is called social media and not authentic media! Rumors give rise to a lot of unwanted discussions and this means we have less time for genuine information.
Hence in this small note I am just trying to let views know what they should not be doing or focusing on:
- There are influential people like your boss or CA, who are luring people especially salaried to put 2 lakhs in their bank accounts for 10 or 15% commission. If you don’t want to do it they suggest a depositing amount in your kids or wife’s bank account. This seems to be a quick-rich scheme as in a family of 4 you can earn about a lakh in 2-3 months.
But, it’s a huge risk. IT department and bank are tracking these transactions through software. Even if you deposit withdrawal will also be tracked. Would you like to lose your sleep and risk tarnishing your financial reputation for some quick gains?
- Do not try to put your servant or office boy in bank queues to convert notes more than prescribed by RBI for daily exchange. Although it was easy in the first week but now banks have software to track your exchange through identity documents.
- Do not force or bribe people to deposit your cash in their accounts, especially who have opened it under Jan Dhan Scheme. This account category will be tracked in details and unknowingly you are endangering financial liability to a poor person.
- Do not damage or write on discontinued notes. Its currency and national property, so respect it as you did when it had purchasing power. (If Sonam Gupta is still troubling you and you want to vent out her infidelity- Use paper napkins. If you don’t know who is Sonam Gupta see this: http://www.news18.com/news/buzz/sonam-gupta-bewafa-hai-these-restaurants-are-making-all-sonam-guptas-feel-special-1312844.html or just google it 😉)
- Do not deposit cash with Banks, Co-operative Banks and Post Office-
- exceeding Rs.50,000 during any one day in a savings account; or
- aggregating to more than Rs.2,50,000 during the period 09th November 2016 to 30th December 2016 in a savings
- 12,50,000 or more, in one or more current account of a person; or
- 2,50,000 or more, in one or more accounts (other than a current account) of a person.
- Please do not put new currency especially the Rs 2000 note in the refrigerator or soak in water or apply hair oil (rumor: Gandhiji’s hair will grow on genuine notes) to determine its quality. Just stop wasting time and get used to this new denomination. To check authenticity use methods as prescribed by RBI.
- Don’t be adamant, learn the new methods of payments using technology. Help your parents and not so informed people around you to download paytm or similar app and teach them how to pay through Digitalisation is the way forward and people left behind will feel alienated.
- Do not hesitate to pay all your utility bills, school fees, Insurance premium, phone bills and recharge and other payments from the bank using “pay bills” or using apps like airtel money or using NEFT facilities from banks. All banks are glad to pay your bills by registering the billers online. Very soon small finance banks will launch their services where you can keep a balance up to Rs 1 Lakhs for these small payments.
- Do not stand in the queue if you have sufficient cash. It is a huge pressure on the banking system and let real needy people use this opportunity. Do not fear that your legal money will find any resistance from regulators to change into a new form.
- Last not the least, it’s a chance to start a new beginning. If you have unaccounted cash, come forward and declare it and legalize it after paying penalties. This may feel like a jolt, but things will be typical in coming days. Be honest with get rid of fear and stress- once for all.
These points came to my mind but the list can be long. In case I have not included kindly add it in the comment section below.