The media is hailing Modi’s demonetization of old Rs 500 and Rs 1000 note as a masterstroke policy on curbing the menace of black money.
Let’s have a look into few figures;
What if I told you that total Bad Loans of Indian Banks right now is close to Rs. 6,00,000 crore. What if I told you that PSU Banks are in a miserable condition right now, and need immediate infusion of money to shore up their lending capacities.
What if I also told you that few weeks ago, credit rating agency Moody’s had stated that Indian banks required Rs. 1.25 lakh crore capital infusion? What if I told you that in July 2016 the Centre injected 23,000 crore into 13 public sector banks. What if I told you that Finance Minister Arun Jaitley said it in 2015 that the Centre would pump in more than 70,000 crore in PSU banks in coming four years.
And..What if I told you that this demonetisation is nothing but a measure to infuse money in those ailing banks so as to shore up their lending capacities?
Can’t you see people queuing up banks to deposit their hard earned money, waiting hours for their turn?
What other “Masterstroke” would have made this possible?
Just trigger the panic button by stating that your old Rs 500 and Rs 1000 currency is no longer a valid legal tender, and Voila!!! People are queuing up since morning to deposit their hard earned money.
What for? To curb the menace of black money? By bringing in new Rs. 2000 note?
You don’t curb black money by bringing in notes of higher denomination. In fact, you are now simplifying hoarding of black money by bringing in new notes of higher denomination.
Ok. So what would banks do with the fresh infusion of money from public pockets? Lend of course. That’s what their business is. And to whom would these banks then lend their money to?
Indeed, very sweet of you.
You are in the deposit queue dear.
Those in withdrawal queues are these privileged or shall I say chosen ones: (Note: the figures in bracket are their present repayable amount which they owe to various banks)
10. GVK Reddy (GVK Group) (33933 Crores)
9. Venugopal Dhoot (Videocon Group) (45405 Crores)
8. L. Madhusoodan Rao (Lanco Group) (47102 Crores)
7. G M Rao (GMR Group) (47976 Crores)
6. Sajjan Jindal (JSW Group) (58171 Crores)
5. Manoj Gour (Jaypee Group) (75163 Crores)
4. Goutam Adani (Adani Group) (96031 Crores)
3. Shashi Ruia & Ravi Ruia (Essar Group) (1,01000 Crores or Rs 1.01 trillion)
2. Anil Aggarwal (The Vedanta Group) (1,03000 Crores or 1.03 trillion)
1. Anil Ambani (Reliance Group)(125000 Crores or Rs 1.25 trillion)
The government just carried out a surgical strike on your pockets, and now you are running like chickens. That’s how crony capitalism works.
Now call me whatever you like- Marxist, Communist, Anarchist, Congi agent, conspiracy theorist blah blah blah.
(The views expressed here are solely the author’s own. The facts and opinions appearing in the article do not reflect the views of Janta Ka Reporter and Janta Ka Reporter does not assume any responsibility or liability for the same)