The demonetization of high value currency notes has been undertaken by the Indian Government to curb fake currency and black money in our country. This has been a welcome move. But, as a normal, tax paying and endlessly worrying citizens, we will face short term problems for the sake of long term gains. Even as we fret, we must explain this situation to our ever-observant and curious children, nieces, nephews and students. This is a historic economic move for the country and our future generation should well understand the motive behind it.
At Trio World Academy we have taken extra classes to make them understand the meaning and effect of demonetization in their level.
What we can tell our kids about demonetization:
Things don’t always go as per plan. You will need to improvise and adapt
All the money that was set aside for groceries, clothes, vehicles, weddings or school expenses could suddenly be no longer used. Albeit with difficulty, the country adapted. We started using our credit and debit cards more often and businesses started accepting different modes of payment. When life throws up surprises, as it always does, we may need to find new ways to get things done.
Pay your taxes fully and on time
A large part of the country’s economic activity happens illegally, outside the government’s knowledge. Cash is hoarded away and spent as ‘black money’ i.e. money that was not declared to the Income Tax department and therefore returns were not filed and taxes were left unpaid. These transactions rob the govt. of revenues that can be used for the welfare of the country. So, the honest tax payer must pay beyond their share to compensate. So, it helps to declare your income and pay taxes correctly.
Cashless payments are the future (and present)
Majority of transactions in India take place through cash payments. One might argue that in many parts of the country, people aren’t prepared for a cashless economy. However, card payments, internet banking, e-wallets, are here to stay and it is time we started using them as often as possible.
The demonetization move inconvenienced a lot of people when they least expected it. Senior citizens were forced to stand in long queues to have cash exchanged. Those who were comfortable with cash had no choice but to seek help to use new methods of doing transactions. Wedding preparations came to a halt. Travellers were stranded with old currency notes. But strangers, old and young, came together in a heartening way to help each other. From mobile ATM services, bank employees putting in extra work hours, neighbours helping each other, and to families pitching in for weddings. We can start by being considerate to those near us because we are all facing the same difficulties.
This is a great opportunity to innovate
We can also look to the new generation to come up with innovative solutions which make changes like these more manageable. Do they have ideas for making payments more simple? More transparency? Faster learning curve? It is time to encourage them to change the future!
All Faqs on demonitization by RBI - Click Here