Pradip Bhandari, the CEO and Founder of Jan Ki Baat spoke to Dr. Santosh Mehrotra, a Professor of Economics at the Jawaharlal Nehru University, to inform us about the alternative ways Demonetization couldve taken form. Dr. Mehrotra believes, had demonetization been implemented differently, the adverse effects it had on the economy could have been tactfully avoided. The professor tried to point at one of the alternate ways: ?500 and ?1000s notes could have been demonetized in separate phases with the 1st phase withdrawing the ?1000 notes and printing an adequate amount of the new ?2000 notes, ready to be supplied. Due to this, the hypothetical 2ndphase, which would demonetize the ?500 notes, would instil confidence amongst the public because of easier exchanges. Dismissing the notion that such a plan wouldve higher chance of counterfeits being minted, Dr. Mehrotra noted that counterfeit currency is printed the plan endorsed by the government as well.
November 8th 2016 revealed the surprises that the BJP government had in store for the citizens of India. With the decision to withdraw the legal tender of ?500 and ?1000, the plan to demonetize high currency notes took the first step. Though the public unrest to the move could be predicted, demonetization has the potential of being a good policy if the suggested measures are implemented.
The issue of currency exchange has become a bane for individuals as well as banks couldve been done away with if the demonetization took place in such phases, with the interim period between the two being used to comfort the public and make financial and policy adjustments.,