Demonitization and it's impact on the normal people

While I was trying to type demonitization on the blog, it automatically got spellchecked to "demonisation"

I think it spells the fundamental feeling on the ground today.

Till now most of us were very much focused on the good things about this.. namely black money reduction and the impact on terrorist activity.

Let's look at it from my perspective if we have achieved this.

1. The reduction in the terrorist activity is less..though not disappeared completely..so the success rate of this is medium.

The fact though that terrorists have robbed three banks in J&K is proof of the pudding . However when we see that they have actually been successful in robbing the banks , it shows lack of thinking of the government or the ability of the government to influence the state governments to help enable this ( though BJP can have no excuse for J&K since they are in government there ).

The security guards in the bank it seems are not even allowed to have guns... so what is the additional security provided by the government .. zilch.

In all impact is positive , but implementation is 2 on a scale of 10. We could have killed the entire movement with this one move

2. Black money

Initially we heard so much about people running helter-skelter for the cash that was stored. It was a feel good factor. 

Today, it seems different.. everyday we hear about how much bankers have helped the black money get converted to new notes.. it's still not white..

All the new printing that is being done is being taken away by the hoarders to change their notes... leaving the public with zero money to run their daily business.

Lack of planning and due thought on how the jugadu people will make the change has impacted the entire planning .

Look at the lines and the availability of cash at ATMs is amazing even though we have put back almost 40% of cash into the system.

Yesterday night in a cobversation with the security guards of my society.. they haven't been paid for the month of November.. because no cash is available.  New accounts cannot be created because there is a huge line on the banks.

Banks are not filling up their ATM machines because then customers of other banks can come and withdraw money.. the only place where I see this not happening is AXIS bank.. where maybe they have a heart.. and they always fill up their ATMs ( surprising post the IT raids in their branches)...

Any work to go the bank is next to impossible.

Implementation planning of the government is completely not thought through..whatever the intentions... is creating havoc in the economy.

The new RBI governors experience clearly shows... namely the lack of it. His credibility to the system has been significantly hurt.

In summary, impact to black money has been zilch.

Now the government is trying to push the digital payments... with zero infrastructure.  Phone networks don't work. So when a flipkart delivery person comes with a card machine.. there is no connectivity in NCR.

The paytm type of wallets ensure you now have more money out of the pocket. Because each one will have some money left in each one.. great for the payment wallet companies.. bad for the consumers.

Right now I am listening to the radio on fever 104.. and a nice song on bharat positive...great for emotions but zero implementations.

When we take decisions we need to look at how to make it work.. taking hasty decisions without proper planning impacts the government credibility...ability to implement.

Planning is required.. it's simplefinancialsense