Arthakranti Suggestion for Transition Phase

  • Withdrawal of 500 & 1000 Rs currency notes completely.
  • To absorb sudden liquidity shortage in economy, special adequate numbered / featured new 500, 1000 & 2000* Rs. currency notes to be introduced in a calculated way.
    (2000 rupees note to be introduced just to control number of pieces and provide adequate value for transaction balancing)
    *These new notes are just a stand-by or stop-gap adjustment and can be demonetized /  withdrawn after a smooth transition from current cash-based, non-transparent system to a well-banked, transparent economy.

10 thoughts on “Arthakranti Suggestion for Transition Phase”

  1. This is one of the fantastic suggestion, and a wonderful approach by Sir. Modi ji. Few more things has to happen like this. then things will fall into place.

    One More fundamental change has to happen. there is a idea cooking in my brain [open to share and discuss]. but i am totally unaware, WHERE AND HOW to AIR the same.

  2. Once new notes of 500,1000,2000 are introduced, it will be impossible to demonetize them once again too soon, At least govt has to wait for 10 more years. Otherwise, there would be huge uproar. This time, people are bearing the inconvenience, but next time it will be impossible to withdraw in one year.

  3. A good suggestion materialized after a decade by present Govt. “Eise dill chahe hum”.
    Congrats to Arthakranthi teem.
    Request to translate into other Indian languages so that common students can understand and debate.

  4. It’s really a genius proposal. I thought that there is no hope for this country after reading the news of corruption, black money, politicians becoming multi millionaire within a short period of time without having any valid & known source of income. But now I feel that yes there is a hope & my country will again be a Soney ki Chidiya. Jai Hind!!!

  5. I would suggest an alternative method of implementation. People can download their bank app. Declare amount of 500 and 1000′s with them.

    Government could place the same in an escrow in their account. Whenever people deposit old notes in the account the equivalent in 100′s becomes available for withdrawal. For fun make it 101.

    Note that placing money in your account is merely a book entry. Like typing in a number in a software. There is no loss to the government.

    This is like the double entry system of 1:10 leverage in making currency appear magically out of thin air.

    This is anyway practiced by all banks ever since currency became a fiat, not backed by an atom of gold.

    The plebeians would have been happier. I personally like this move. I have been buying gold since I had an epiphany about how money works.

  6. Modi Ji has done very good. it is a field leveller step. Now the weeds should not be allowed to grow again. As far as inconvenience is concerned, once the push & prod towards electronic transfer of funds, paytm, freecharge, indpay & a host of others starts, people get accustomed to cashless transactions and it will spread. Wifi should be made free wherever infrastructure is available;we may start with asking banks tomake it available in the branches and offices. People are supporting demonetization. Only the hoarders of unaccounted money are worried.

  7. To shri anil bapat
    I had read abt arthakranti proposals a few years back and was impressed and thought it as novel and revolutionary idea. which demands a worthy discussions, debates, analysis from all rainbows of economists ( such as statistal modelling, political, and social aspects international ramifications etc, etc from a point of view of a learned critics examining it threadbare). But alas, as yet I ‘ve not found. so thought that they killed the arthakranti proposal by ignoring it.
    and then suddenly booooom! Hon. Prime minister announcing the discontinuation of rs. 500 and 1000 denomination currency notes and linking it with all the past measures taken by his govt. which stunned one and all. And suddenly electronic and print and net were flooded with the discovery of the real ‘gangotri’ of the steps announced so far. I was whole-heartedly pleased that your efforts were given due recognition.
    Still I am unclear abt how much and how many steps the govt. is resolved and intending to take. In the evolving socio-politico scenario. Because its practical model if put to test in the present harsh opposion will it withstand the ‘environmental test?’

  8. Sir as planned all money is deposited in banks,banks flush with funds, all transactions done through banks ,taxes lowered , govt’s coffers filled to the brim . Is that all we need? What if banks lend irrationally which may again result in bad loans which are ultimately written off. What about the Nexus among politicians- corporates-banks? Won’t scams take place as happened in USA ? Corruption runs deep in Indian’s blood and its a very old malady somewhere I read Chanakya was deeply perturbed by corruption in our country. As I think elimination of black money is part remedy of the problem but why should I assume that money with government and banks shall be used judiciously ? How do you propose to deal with corrupted minds of politicians and officials?

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