Anil Bokil who is said to be the mastermind behind the demonetization of high denomination currencies has again given a hint that the new 2000 rupee notes will soon be withdrawn.
Anil Bokil while addressing the Arcade Business College on Wednesday, answered many questions related to demonetization and how the move will help the economy in future, During the interaction he gave a clear explanation as to how the demonetized notes of Rs 500 and 1000 constituted 86% of the cash flow and black money racket in India and withdrawing them had become inevitable since the circulation of these currencies had only favoured the black money market and did not help the economy. 2000 rupee notes were introduced to immediately reduce the cash crunch and normalize the situation in short time, Bokil said.
He gave an example as to how “artificial circulation is used in the place of a heart during a heart surgery. The Rs 2,000 note was used as an alternate in place of 500 and 1000.” Pink notes were a diversion created just like how we create a diversion road when the main road is under repair. So once new road is constructed, why is the diversion required? Cash economy is a bumpy road and would destroy the economy any day he said.
Once the money flow eases in the market, 50, 100 and 500 rupees are sufficient for the cash transaction and there will be no requirement of high denomination notes.
For a question on how will demonetization which has caused hardships to people help economy and how can it be called the right step to curb the 6% black money, he said 6% is not the authentic figure of black money. This is just an assumption and said that black money is like cancer and when you treat cancer cells, 1-2 healthy cells are also affected. He said we all know how the political parties are run by 90% black money, they have no authentication and politicians have massive amount of black money stacked in their treasures. This is why the political parties are creating so much hue-cry about note ban when common people are ready to face hardships for few days. They are not worried about common man, but are worried about their crores.
He accepted that country was facing economic slowdown, but this was just temporary and will soon improve in coming days adding that demonetization is NOT DEVELOPMENT MODEL but a CORRECTION MODEL which had to be implemented. It will definitely improve every sector in the markets especially the businessman and entrepreneurs.
He said it was high time this step had to be taken, or it would have lead to major collapse of economy in next 5 years and would have been irreparable. The move was only aimed to curb the counterfeit notes which were helping terrorism, naxals, Maoists. Indian economy was growing at 7% while the parallel economy with black money was growing in 11%.
Of course, there were few confusions, as this move had no precedent and procedural errors are natural and bound to happen when anything new is implemented. He asked, whether there was any fl But the intentions are good and we need to support as ultimately it will be the common man who will be largely benefited said Mr Bokil!