LIFE AFTER DEMONETIZATION (FROM THE PERSPECTIVE OF COMMON INDIAN CITIZENS)
India’s Prime Minister’s decision on ‘Demonetization’ is commensurate with the economic terminology of ‘creative destruction’, a term coined by one of the most influential economists of the 20th century – Joseph Schumpeter. Creative destruction refers to the process by which something new brings about the demise of whatever existed before it. The very essence of Economics is that for the advent of anything new the old must die. This very concept is aligned with that of the Demonetization system, wherein for use of new high denomination currency notes (2000 & 500), the old currency notes of high denomination (₹ 1000 & ₹ 500) have become rendered invalid.
Life after demonetization
Demonetization was implemented and enforced for uprooting black money, wiping out counterfeit currency, avoiding the deposit of excess cash in physical assets such as gold, combatting corruption and for promoting the extensive use of digital media for commercial transactions in the economy. But at the grass root level, this creative destruction has hampered the normal economic lives of common public in India.
Waiting in long queues outside ATMs and banks has become a stereotypical scenario even after a month of the implementation. Masses suffer from cash crunch since currency notes are either available in low quantities or unavailable. Throngs of people in society who are free and fair in terms of tax payment and currency holding aren’t being able to exercise any liberty and freedom over their own currency since the deposits and withdrawals of currency notes in respective banks has been restricted by the government. The common man seems to have less personal disposable income in terms of liquid cash to carry out transactions in their day to day lives.
Yet, the pros are inevitable in this move. The public are now conscious about their savings capacity, expenditure and thrift. People are becoming aware of the economic scenario and they tend to make suitable arrangements to adjust themselves to the changes in the economic environment. The concept of ‘Caveat Emptor’ – let the people beware has gained importance in the society through social media, print media and word of mouth. Individuals with access to digital media have stretched their transactional wings to the use of e-wallet, e-banking, credit and debit cards to the maximum for transfer of funds moving cashless and paperless.
The citizens tend to embrace any preposterous delusion than to accept any occasional bleak truth even if it is demonetization. Hence, demonetization becomes a blessing or a curse only with a radical change and a gradual move of perspective about the economy. Therefore, it’s a challenge before the government to make Wi-Fi and smart phones available and accessible to all citizens with simultaneous strengthening of the implementation mechanism in collaboration with the Reserve Bank of India(RBI) for an effective cum efficient channelization of legal currency notes to every nook and corner of the country.