The writer has misread the intention behind demonetisation of Rs.500 and Rs.1,000 notes (“ >The new colour of money ”, Nov. 11). A decision like this is not always taken to spruce up the economy. Unaccounted wealth is a black mark on our society. If the salaried class pays taxes through its nose, the same is expected of the wealthy. The argument that such a step will not discourage corruption fails to impress the reader. When new currency notes are required for future transactions, it automatically means that there is no free circulation of currency notes for paying bribes. The next argument that nothing will change drastically as demonetised notes will be replaced by fresh ones is fallacious since all the unaccounted cash will never be replaced. There are restrictions in the exchange process entailing huge tax. What is in the account book alone will be exchanged. The whole nation is happy with the move.
V. Lakshmanan,
Tirupur, Tamil Nadu
It is too far-fetched to see any cultural angle, as the writer does, in the introduction of Devanagari numerals in the notes. Notes have ‘Reserve Bank of India’ written in Hindi, for instance. Does that also constitute a cultural attack?
Pallav Kumar,
New Delhi
The situation is not as smooth as claimed by some people in this space. Many are suffering. Some banks are refusing to exchange money, saying they are short of funds. Common people feel that the economy will no longer be tainted and feel like they are contributing to cleaning up the mess. But the government must explain what it has done to catch the big sharks.
K. Muhammed Ismayil,
Kozhikode, Kerala
In Bengaluru where I live, most ATMs and cash deposit machines are out of order. This needs to be sorted out without any delay as this crisis is causing long queues. Also, separate queues for deposits and exchanges would make it easier.
G. Padmanabhan,
Bengaluru
This master stroke will eliminate the counterfeit notes in circulation and bring black money-holders under the scanner to a large extent. It will also help us move towards a cashless economy. People are thronging banks to exchange and make deposits. This move is also compelling people to open accounts to deposit their cash, thus bolstering financial inclusion. This is good for the reeling banking sector and for the economy as deposits help in lending loans. Higher deposits may lead to lowering of interest rates.
However, the logistics make things difficult. When most of the ATMs are dry in cities, including the national capital, one can well imagine the situation in villages. The banking machinery must deal with this task on a war footing.
Anshu Patel,
Dhanbad. Jharkhand
I am an Indian citizen living in the U.S. While demonetisation seems like a welcome measure, we do not know how people abroad, who are not visiting India any time soon and who don’t have non-resident ordinary rupee accounts, will exchange the currency they have.
Venkatesan N.,
California, U.S.
