With your editorials “Remonetise Fast” and “Be prime ministerial” (November 15), you have hit the nail on the head and have taken a candid view, albeit somewhat flawed, about how the Prime Minister has reacted. There is absolutely no debate on the issue that the decision to demonetise is in national interest and would definitely help big time in significantly cleaning up the black economy. Statements of the State Bank of India chairperson about deposits of Rs 83,702 crore in five days are proof enough. I am sure other banks, too, would also see a big spike in their deposits. The government is doing all that is feasible to ameliorate the hardship of the people. Setting up a task force under the RBI deputy governor to oversee recalibration of 200,000 ATMs is yet another step in the right direction. It is indeed a big crisis but one can’t really fault the government in its sincerity. Your suggestion to import new currency is perfectly valid and indeed a practical solution.
The PM has made this announcement at a great risk to his party’s chances in the upcoming state elections and the big battle in 2019. He is aware that if public perception swings the other way, BJP might really be hit hard. So, it is a calculated gamble to that extent. But taken in the larger interest of the country. The Opposition parties’ inane and mindless shouting against the move is just dirty politics. Even if one was to believe the insinuations that some politicians had prior information and may have stashed their and their party’s ill gotten wealth abroad, it would still result in huge sums coming into the banking system and also huge sums reducing the RBI’s liability. Cleaning up will certainly not be 100 per cent but even if 50-75 per cent of the astronomical amounts in the parallel economy becomes legitimate, the gains would be unbelievable! One also can’t find faults with Amit Shah’s suggestion to the finance minister for some “sops” in the next Budget as a “healing touch”.
I beg to differ that the PM's speeches in Goa and Ghazipur gave any hint that the “government was not exactly in control of the situation”. He was candid in his characteristic manner and made an emotional pitch – again in his characteristic style – and hopefully it will have a positive effect.
Krishan Kalra, Gurgaon
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