The
first maiden is set by the RBI to withdraw the circulation of currency notes
printed prior to that of 2005 as an advancement to curb black money. RBI
assures exchange of all the currencies printed prior 2005 for new notes. A study revealed that huge number of
corruption cases are enrolled before 2005 and are yet to be brought before the
finance ministry. The control of its circulation is expected to act as an agent
in preventing the flow of black money in India. However, the most corrupted
parts would remain seclude from this ideology. It is also revealed that
currencies signatured by former governors such as S Venkitaraman, C Rangarajan,
Bimal Jalan continue to be in circulation till today.
The
currencies printed decades ago continue to be in circulation. The stipulated
period of time granted for the exchange of currency notes may head troublesome
situation for the public even when it rewards healthy financial transactions
from thereon. RBI Governor Raghuram recognised and vindicated the fright of
common public addressing them that this it is not a matter of demonetisation to
be apprehensive about. This is considered
to be the motive of RBI to vandalize corruption from existence. Intrinsic value
of the paper doesn’t add any value for the note, only the number printed adds
for the cost. Economists factorize money is just a matter of four functions; a
medium, a measure, a standard and a store. The value of notes remains standard
and cannot be demonetised like that of gold without BIS mark. The factor of demonetisation need not indulge
panic in the hearts of public.
The
hardship of the initiation is from July 2014, all the transactions with the
issuance of 10 pieces -Rs.500 or Rs.100 notes should be enclosed with the
details of the customer. This will not only shake the privacy of individuals
and also award time consuming criteria for getting into exchanges. The
Financial Ministry had also suggested that the new notes must have better
security measures.
The ministry’s suggestion of notes with security measures
was addressed as ‘anti-poor’ move by the political parties. Common people would
suffer a period of tedium with the move of curbing old notes conferred as
curbing corruption by the RBI. Corruption will live with new ideologies charged
on the public.
