There has been debate in the Country whether Demonetization Policy by Prime Minister Narendra Modi a Failure?

After making a little study into this topic through social media and reading few articles reading its implementation, I
do not think demonetization a Failure. In fact it has helped the country in the following ways.
The Govt was prepared enough before the demonetization though only PM,FM and 2 each bureaucrats in RBI and Fin
Ministry were aware of the actual demonetization news before Nov 8 8pm.
The proposal was passed in the RBI Board at 6 pm on 8th of November led by RBI Gov Dr. Urjit Patel and soon
Cabinet meeting of Union Govt was called on at 7 pm. The PM had already made the communication to head of three
armed forces regarding the decision.
Encouraging the Digital Payment Banks :
The Govt in 2015 had issued license to 11 Payment Banks in the Country. And the coverage of private players through
business agents/correspondents has been phenomenal. The demonetization has made mobile wallets such as
Paytm ,UPI, m-Pesa , Money, ICICI Pockets a huge success even amongst lower income groups. This has also made
the India ready for cashless economy in the future.
Support Indian Banking sector which has been suffering from bad debt
After Policy of UPA Govt and monumental scam in the country there had been huge chaos in the corporate sector on
private investment after many multi billion dollar projects were stalled due to policy paralysis and lack of decision
making. The Banks which were exposed to these projects started getting weaker due to exposure to these projects.
Many defunct companies such as Kingfisher had a huge exposure of about 7500 Cr to Major Banks like
SBI,Corporation Bank,Indian Bank etc.
Hence lending strength of the banks have been considerably weakened. To set this position right you either had to
recapitalise them through tax revenue being collected or reduce the interest rates.
But the Demonetization move has brought about 6,00,000 Crore into the Banking system in the form of deposits with
over 65,000 Cr into the Jan Dhan Accounts which has been a huge move by itself.
This will help banks lend loans to Entrepreneurs in the country there by rebooting the growth story.
Remember Banks had given loans of over 1,50,000 Cr to micro entrepreneurs through MUDRA Bank Scheme
launched by the Prime Minister since 2014.
Financial Inclusion
The Prime Minister had launched PM Jan Dhan Yojna to help the poor access the banking facility in the country. 25
Crore such accounts were opened in the past 9 months it has got a huge potential in making their lives better in the
long run.
Aadhar along with Mobile and Jan dhan accounts can help the Govt deliver the Services without any middleman
directly to the beneficiary. Even the Social security schemes such as Insurance and Atal Pension Yojna have been a
Great step in this regard.
Service Delivery
With over 27 Public Sector Undertaking Banks and over 10 Private Banks in the country the challenge to cater to 130
Crore population on notes exchange with only few thousand branches in the country was of great challenge.The Govt
had delivered the new 2000 Rs Notes to over 4000 Currency Chests a day before the announcement. Many officials
involved in it and the RBI Press guys thought it was routine and were not aware of the real demonetization intension
of the Govt .Banks employees have done a wonderful job in exchanging over 50,000 Crore of notes with over 8 Crore
Transaction per day.

GST
With Government having intension to bring the GST from 2017 April as the Black money and Black Market in the
economy has been flushed due to demonetization it will make all the businesses and trasactions in the country being
available to the Tax man.
It will not only increase the revenue but also increase the GDP through public spending of these taxes by the State and
Central Govts in Infrastructure,Public Spending,Developmental Schemes.
The Demonetization had its consequence to the following players
Corrupt Politicians and Bureaucrats
Few of the Corrupt Politicians like the Congress,Kejriwal, Mayawati, Mullayam, Lalu Prasad Yadav, Shiv Sena have
condemned this move as it has ruined their own wealth which was being accumulated in the form of unaccounted
Cash. It has made them difficult for the elections ahead to fight without the Cash Supply.
Medical Institutions/Educational Trusts
Many Medical and Engineering Colleges in the country take the donations using Cash this demonetization has hit
them very badly . They no longer would make their transaction in Black Money.
Real Estate
The Real Estate in Big Cities like Bombay,NCR and Delhi were involving in Cash Transaction to make their Business
which were in Black to avoid themselves from the Taxman. They also had hoarded the real estate properties with the
money of bureaucrats, politicians to that extent that even a SC Judge Or RBI Gov of this country with his Govt Salary
may not afford the housing in these Big cities. The Iron Fist act against black money through demonetization has sent
a shock wave across all the prices of Real Estate, through this correction of prices it will make the common man afford
a housing soon in his dream city in India.
Fake Currency Network and Terrorism
Fake Currency Notes is estimated to be about 15% in India amounting to 1.2 Lakh Crore INR . These were mainly
been circulated into other parts of India from Kerala and West Bengal through Middle East routes. This fake currency
racket were involving the youth and making them join illegal activity such as terrorism, underworld activity, drugs
peddling etc. With the Move of demonetization this money has been flushed out of the market and Pakistan can no
longer cause economic terrorism in the country through these means.
Finally as a Tax paying citizen of this country i am very happy with this move of the Prime Minister. It will boost the
Countrys Economy in the long run as the cash flow through black money and fake notes has completely been
stopped. It will bring all the transaction made in the country being made digitally available to the Income Tax
Department and Other Govt Agencies.