Page 26 - Banking Finance JANUARY 2017

COVER STORY

DEMONETISATION -

THE PAIN AND THE

GAIN

I n the history of India's independence since 1947 there the fact that it covered 86% of the value of the notes in
have been many incidents that have touched the lives
circulation. In a country where 90% of the transactions are
carried out in cash it was indeed a monumental and bold
of a large number of citizens like partition of the coun-
try, bank nationalization, green revolution, white revo-
lution , emergency, liberalization to quote a few. The inci- decision.
dent which has touched each and every individual in the When the Prime Minister announced the scheme he told the
country more than any other incident is the demonetiza- people of the country that they should bear the short term
tion of 1000 and 500 notes , by now known by the short pain for which they will be compensated with long term gain.
name- SBN- Specified Bank Notes, on 08/11/16. There can be no two opinion on the fact that for the unin-
formed and the unlettered of the country who thrive on daily
It is not that demonetization was not done in our country wages or earnings the scheme was indeed life shattering.
in the past that this dose of demonetization is of any great In the same way for the people in the far flung and remote
significance. The importance of the present bout of demon- villages of the country the scheme was life damaging. These
etization is from the fact that it was announced all of a are the sections of the society who have least reserve
sudden without giving any notice to anyone and also from strength and are also not initiated into cashless domain.

About the author The informed and educated sections of the society though
also felt the shock initially but because of their inherent
C. J. Vijaybalaji reserve strength and they being already initiated into the
Faculty Member digital world could handle the situation with little pain.
SPBTC Mumbai
There were obviously some sections of the society who were

26 | 2017 | JANUARY | BANKING FINANCE

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