Category: Miscellaneous

06 Jan 2022 12:17

Joined:	05/10/2014
Level:	Gold
Points:	3263

Points:	5

Is demonetization a sheer example of arbitrary power?

In the realm of democracy, though there is high scope of constructive changes, there is no place for abrupt transformation under the arbitrary power of the power at the centre. Because the core quality is that power flows from people not the other way around but demonetization was one of the strict checks on the financial sovereignty of billions of people in India.
As we trust the government with our money so we agree to have an institution like bank to grant us security and in return we can compromise our sovereignty to some extent but when the institution itself take over our wish as the mandate to harm our sovereignty even the intentions are good can prove to be harmful for the well being.
After a while demonetization was linked to have a robust digital payment system and indeed the digital transactions are improved in our country and have to be supported but with the digital payments at their disposal now people have gathered power in the form of crypto currencies where they can have their own financial structure without facing another radical step detrimental to their financial sovereignty. The government trying her best to control the cryptocurrency but I feel the government has lost the financial trust and cryptocurrency impart power to citizen in absolute sense.

#749073

06 Jan 2022 12:37

Joined:	10/12/2016
Level:	Platinum
Points:	88453

Points:	5

There are many misunderstandings regarding the demonetisation and though it is an old topic and was discussed umpteen number of times but still it has merit to be discussed more and more at any point of time. Many people believed that they could keep as much currency in the house as possible and if it was accumulated by not paying the taxes and was earned through evil and illegal means then that was the best option to hoard it in a cellar below the ground floor. Unfortunately, the demonetisation was a big jolt to these corrupt people who were not able to deposit their ill earned money in the banks due to obvious reasons. To that extent it was a very successful step by the Govt and if due to same reason it is again done then we the honest tax payers welcome it.
Today digital payments have made the life so simpler that there is no need to stack cash in the house. Still some people are keeping large amount of it in their hidden lockers. Why? To save tax? Or to hide its ill source? These are the questions which can be only answered through a quick demonetisation without giving the people a chance to convert the cash they are hiding.

Knowledge is power.

#749083

06 Jan 2022 14:24

Joined:	12/10/2009
Level:	Platinum
Points:	250432

Points:	5

The matter was discussed in detail and even a GD was done in the matter. When the country was facing the black money hoarding, the rich are making the money not to flow and holding the big currencies under them, the economy has to progress and develop and there was urgent need for reform in the form of demonetization and Modi government has brought full stand still to the movement of black money and thanks to that move even every transaction goes through the eyes of the government and digital payments are going to rule the future. The crypto currencies are making a foray into our beings, but our law enforcing agencies are working out strategies to ban the same otherwise there would be parallel currencies would be running and that gives rise to black money earning. The government is vigil on the matter.

K Mohan
'Idhuvum Kadandhu Pogum "
Even this challenging situation would ease

#749089

06 Jan 2022 15:03

Joined:	15/01/2018
Level:	Gold
Points:	10632

Points:	4

No matter what but few of the actions by the PM Modi-led BJP NDA government like the GST and demonetization are still worth debating.

I imagine the scenario wherein the income tax officials tend to plan and target each suspect for raids then I do not know exactly the time frame when each suspicious will be covered and brought to justice. Considering the given scenario, surely demonetization did its job.

As per the latest update, the government is not yet planning to ban the cryptocurrency but instead to bring it under a regulatory framework and we are yet to be evident of how the things will be established in the coming times. Under the proposed law the digital currencies will be renamed crypto-asset and have been brought under the scope of SEBI.

#749093

06 Jan 2022 16:32

Joined:	02/06/2009
Level:	Platinum
Points:	119941

Points:	5

I feel demonetization is successful and many people came out and deposited the money in the banks and the black money has become white. Now India is making many digital sanctions and I read somewhere that India is doing the maximum transactions digitally. This is really happened mainly due to the initiative taken by the government and we should appreciate the government for that. But the entire exercise has not brought the desired results completely and still a lot of cash transactions are going on especially in the real estate business. Further, a lot is to be done by the government to bring back complete control of the system.
Cryptocurrency is not banned in our country but trying to make it more systematic and bring in a framework wherein the system will work within that framework. They are thinking of making rules and regulations. Cryptocurrency should not become a second financial line and should go with the existing financial system only.

drrao
always confident

#749138

07 Jan 2022 21:06

Joined:	10/12/2016
Level:	Platinum
Points:	88453

Points:	4

Crypto currency is a very different type of instrument and we do not have any earlier knowledge about it and we also do not have any legal framework to deal with it. This is a very strange and amusing online currency as there is no control of any Govt or bank on it If something goes wrong or some fraud is done Govt would be just staring at it as what to do with that incident. That is the whole problem in our country as well as in many countries across the world while dealing with this new dimension of financial strength. So far the selling profits of the crypto currencies are not mapped in the income tax site also and if someone earns a lot of money by selling them where he would deposit the tax or he would keep quiet.

Knowledge is power.

#749171

08 Jan 2022 14:24

Joined:	12/10/2009
Level:	Platinum
Points:	250432

Points:	4

@Ved Prakash, you have mentioned the right thing. It was IT department which was acting on the tip and would raid the people who stashed black money without showing the source of income and thus caught. But there were instances during the previous governments that the raids were not made public and even the amount not specified. But the demonetization effort by Modi Government has cleansed the black money politics once for all and the IT department is not having the work at all and therefore they are now drafted against those who are not complying with GST norms.

K Mohan
'Idhuvum Kadandhu Pogum "
Even this challenging situation would ease

#749175

08 Jan 2022 17:35

Joined:	25/11/2014
Level:	Diamond
Points:	32149

Points:	5

Demonetisation was the appropriate step taken up by the government to contain black money and while undertaking this mammoth task, it was not easy either. But thanks to the sensible people, they cooperated the government wholeheartedly for this campaign. Lastly it can be said it was definitely a successful venture and defaulters in paying the appropriate taxes were in the panic state. We should welcome the step taken up by the government in the demonetising process. This has created panic among the hoarders stacking unaccounted money in the hidden self of their premises.
Still drive should continue to check the volume of black money since in the real state business there are two mode of payment- one being the hard cash where around 60 % payment are made in the cash and rest through the cheque system showing the government and tax authorities that everything thing is going on smoothly at least by way of transactions. Still an honest effort has to be done to cleanse the black money prevailing in the market.

#749240

09 Jan 2022 23:34

Joined:	19/06/2011
Level:	Diamond
Points:	82344

Points:	5

Changes will be there always. With those changes there will be crimes and bad things also. Vulnerable people will be victims and suffering.

In such a situation it is the duty of every true government, which believes in the welfare of its people, to bring out controls and protect the innocent and weak, vulnerable from such exploitations and cheating. This they ma do by regulations, controls or total banning.

As cryptocurrency is not a popular or simple one even learned people do not understand its consequences and actual effects. Till now it is going on under the lie. via the internet. However as the internet is a vast world and has reach to people who are not technically capable and who are also vulnerable, it is the duty of the governments to put in measures to protect the innocent vulnerable general people.

It is only recently that there is a public, open global platform between the various countries to think about the various aspects of cryptocurrency.

In due course if the major countries are able to put in place healthy and strong mechanisms to regulate and monitor and provide sufficient protection against mishaps, probably even cryptocurrency may become the norm in the place of the present currency systems.

Is demonetization a sheer example of arbitrary power?

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