Different Perspectives of Currency Exchange

Introduction

The current currency exchange regime has come under severe debate with the entire opposite parties opposing the move. Let’s analyze the scenario from different perspectives

GOI perspective

• GOI stated that the currency exchange was introduced to curb the black money 
• November 24, 2016 is the last date to exchange the old notes for new notes 
• GOI aims to bring all the currency circulating in the economy under the formal banking sector to increase transparency 
• GOI aims to collect the maximum possible tax revenue as a result of currency exchange 
• GOI announced that old notes will be accepted in tax offices, EB bill centers, Petrol bunks etc. 
• To ease the problem of change, all tolls were made free till 24th November 2016 for congestion free vehicle movement 
• Sentimental speeches made by PM to curb black money 
• GOI firm on the currency exchange and said there is no way of taking back the move 
• The move was welcomed by Supreme Court of India and PIL filed against GOI has been stayed by it 
• GOI seeks the support of all the stakeholders with banking, judiciary and executive offering full support 

Banking Perspective

• RBI has taken initiatives to make easy the currency exchange process 
• RBI provides full support to exchange the old currency with banks running even on Sundays and working over time 
• Banks allowed customers to deposit their money in their bank accounts 
• Initially Rs. 4000 was given per person, then it was reduced to Rs. 2000 
• There are about 225000 ATMs across India 
• Out of which 85000 ATMs have been upgraded to process the new currencies as on November 24, 2016 
• Steps are on full swing to calibrate the rest of the ATMs by this month end 
• Ms. Arundatti Bhattacharya addressed the media on 23rd November and welcomed the measure of currency exchange as a positive measure to curb black money 

Opposition Parties Perspective

• Mr. Arvind Kejriwal and Ms. Mamta were the first to openly condemn GOI for their action 
• All opposition parties take a negative stance for the problems caused to common people 
• Both the houses of parliament are summoned continuously owing to the confusion prevailing over the currency exchange regime 
• All the opposition MP’s staged a mass demonstration against GOI on 23rd November, 2016 in Delhi 

Common man perspective

• First to get affected was the common man 
• There were long queues every where in Banks, Tax offices, EB centers etc. to exchange the old currency 
• Marriages faced problems with people not accepting the old notes 
• Business transactions have been reduced to a great extent as the common man is not transacting as usual 
• People had to wait in long queue from morning to evening to get 4000 
• Many of them put leave for their job to transact 
• Second problem of money change arouse 
• Common man got 2000 rupee notes from the banks but there was no change available in the local shops 
• Severe money change problem with less circulation of 100 rupee notes 
• Common man is still facing the problem doing only limited transactions 
• There is a lot of curfew in some parts of the country with the public involving in road blockage and breaking open the ATM machines 

Media Perspective

• Media reflected the common man to a great extent in this currency regime and exposed different methods taken to illegally exchange the black money 
• Media accused the brokers for using poor people to transact again and again to exchange the black money 
• Brokers charged a whopping 40 to 50 percent commission for exchanging the black money through the formal channel 
• Poor people were given commission by the brokers 
• Many Bank officials were corrupt and exchanged new currency in an illegal manner 
• Transport corporations received money from common people in denomination of 10, 20, 50 and 100 but deposited 500 and 1000 in the bank openly revealing the corruption 
• Misuse of Jan Dan Yojana accounts with deposits accumulating to 20000 crore in these accounts 
• Investigation to be done by RBI on these accounts 

Verdict as of now

• Majority of the people welcomed the measure as a means of developing India 
• The recent Poll conducted by Modi App on November 23, 2016 states that 93 percent of Indians are favoring the currency exchange