Major Perspectives of Currency Exchange | SBI PO Prelims & Mains Preparation - Bank Exams PDF Download

Introduction

GOI perspective

• GOI stated that the currency exchange was introduced to curb the black money 
• November 24, 2016 is the last date to exchange the old notes for new notes 
• GOI aims to bring all the currency circulating in the economy under the formal banking sector to increase transparency 
• GOI aims to collect the maximum possible tax revenue as a result of currency exchange 
• GOI announced that old notes will be accepted in tax offices, EB bill centers, Petrol bunks etc. 
• To ease the problem of change, all tolls were made free till 24^th November 2016 for congestion free vehicle movement 
• Sentimental speeches made by PM to curb black money 
• GOI firm on the currency exchange and said there is no way of taking back the move 
• The move was welcomed by Supreme Court of India and PIL filed against GOI has been stayed by it 
• GOI seeks the support of all the stakeholders with banking, judiciary and executive offering full support

Banking Perspective

• RBI has taken initiatives to make easy the currency exchange process 
• RBI provides full support to exchange the old currency with banks running even on Sundays and working over time 
• Banks allowed customers to deposit their money in their bank accounts 
• Initially Rs. 4000 was given per person, then it was reduced to Rs. 2000 
• There are about 225000 ATMs across India 
• Out of which 85000 ATMs have been upgraded to process the new currencies as on November 24, 2016 
• Steps are on full swing to calibrate the rest of the ATMs by this month end 
• Ms. Arundatti Bhattacharya addressed the media on 23rd November and welcomed the measure of currency exchange as a positive measure to curb black money 

Opposition Parties Perspective

• Mr. Arvind Kejriwal and Ms. Mamta were the first to openly condemn GOI for their action 
• All opposition parties take a negative stance for the problems caused to common people 
• Both the houses of parliament are summoned continuously owing to the confusion prevailing over the currency exchange regime 
• All the opposition MP’s staged a mass demonstration against GOI on 23^rd November, 2016 in Delhi

Common man perspective

• First to get affected was the common man 
• There were long queues every where in Banks, Tax offices, EB centers etc. to exchange the old currency 
• Marriages faced problems with people not accepting the old notes 
• Business transactions have been reduced to a great extent as the common man is not transacting as usual 
• People had to wait in long queue from morning to evening to get 4000 
• Many of them put leave for their job to transact 
• Second problem of money change arouse 
• Common man got 2000 rupee notes from the banks but there was no change available in the local shops 
• Severe money change problem with less circulation of 100 rupee notes 
• Common man is still facing the problem doing only limited transactions 
• There is a lot of curfew in some parts of the country with the public involving in road blockage and breaking open the ATM machines

Media Perspective

• Media reflected the common man to a great extent in this currency regime and exposed different methods taken to illegally exchange the black money 
• Media accused the brokers for using poor people to transact again and again to exchange the black money 
• Brokers charged a whopping 40 to 50 percent commission for exchanging the black money through the formal channel 
• Poor people were given commission by the brokers 
• Many Bank officials were corrupt and exchanged new currency in an illegal manner 
• Transport corporations received money from common people in denomination of 10, 20, 50 and 100 but deposited 500 and 1000 in the bank openly revealing the corruption 
• Misuse of Jan Dan Yojana accounts with deposits accumulating to 20000 crore in these accounts 
• Investigation to be done by RBI on these accounts 

Verdict as of now : Majority of the people welcomed the measure as a means of developing India. The recent Poll conducted by Modi App on November 23, 2016 states that 93 percent of Indians are favoring the currency exchange