Recently Former Finance Minister P Chidambaram mentioned that only around 400 crores of fake currency was in circulation. Demonitisation is aimed at removiing black money, fake currencies and terror funding. since all the political parties have their own personal interest in not eradicating black money, they are now on the streets to oppose the scheme, citing the inconvenience of poor people. Not withstanding all the inconveniences, common people welcome this move to eradicate the black money. They are the worst affected because of black money.
9th Report of Parliamentary committee on Public Undertakings headed by Shri Jagdambika Pal, a Congress MP submitted its report to 15th Lok Sabha and Rajya Sabha on 21st March 2013. This report estimates the counterfeit currencies at Rs.1,69,000 crores. This report was submitted during UPA regime.
Nearly 14 lakh crores of 500/1000 denominations were demonitised. So far, 5 lakh worth genuine currencies have come back to the banks. It is expected that another 5 lakh crores may enter the system in the coming days. Out of 14 lakh crores , 3 to 4 lakh crores may not return to the system, since they could not be accounted. Those currencies will be burnt or put in temple hundi. Even if they put in temple hundi, it comes into the system. These 3 to 4 lakh crores is held as currency by politicians, bureaucrats, some media owners, black money hoarders and they are now running between pillar to post like 'headless chicken' opposing the scheme. They are losing their black money.
Counterfeit currencies do not come under the above calculation. They will go out of system automatically. I will write a separate article on this. The operation is like formating of a computer or cancer surgery, when we have large number of virus. In this country wide mammoth operation, there will be some inconvenience.
Politicians and media are hiding the real facts out of nervousness and insecurity. Sadly poor people are misled. This is a historic transition. Kindly educate the poor people. Any change may cause inconvenience for short time. But it will be advantageous when we reap the advantage after two months, when we clear the black money and fake currencies. Unless people cooperate, Government alone cannot do anything.
By Prime Point Srinivasan, Editor in Chief, PreSense