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PM Modi announces ban on Rs. 500 and Rs. 1,000 notes

With the aim of curbing the menace of black money and fake currency, Prime Minister Narendra Modi has announced the decision to ban existing 500- and 1000-rupee notes from midnight today.

The absence of large-denomination notes will definitely make it harder for people to keep black money in hand. However, there are no clear estimates as to how much black money is in actual currency notes, and how much in land or gold or other forms of wealth.

The decision seems to have more with PM Modi trying to show that he is capable of doing something tough. It can be seen as both a sign of of desperation and brilliance.

The promise to “bring back black money” was one promise that Modi made before getting elected as the prime minister of the country. Modi would end the black money economy, people were told. Whether or not Modi specifically promised to bring back 15 lakhs and put it in everyone’s bank account, there’s little doubt that many of those who voted for him expected some cash in their account from black money.

Now, that hasn’t worked out, has it? And it gave a strong weapon in the opposition’s hands, in fact. Rahul Gandhi used every opportunity to ask people at rallies whether they received 15 lakhs in their bank accounts.

The decision should be seen as the beginning of Narendra Modi’s re-election campaign. Now he’s going to focus on changing the subject from everything he hasn’t been able to do since 2014.


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