Faculty members of IIT-Madras have appreciated the Central Government’s decision to demonetize the Rs.1000 and Rs.500 currency notes. Supporting the decision, the faculty members said that this was a very firm move on the government’s part and will help in reducing the new black money to enter the market. The faculty members also added that it is a move that will help free the nation from corruption.
IIT-Madras faculty members issued a statement on Friday, November 11, 2016, stating that black money sums up to 25% of nation's GDP and also affects the education sector. The statement also mentioned how seats in colleges are sold for money.
The faculty members also expressed how black money and corruption affects the common man who earns rightfully and pays taxes but is impacted the most. Talking about inflation, the faculty members said that the bank notes that are in circulation have been increasing at a very fast rate in the last five years and have grown up to 40%. This has led to the rise in inflation.
The government's decision to invalidate existing currency notes of Rs.500 and Rs.1000 will stop the black money from entering the marked and stop corruption, added the statement.
An estimate of Rs.14 lakh crore is currently in the market in the form of these two notes. Even if 20% of this amount – that sums up to Rs.2.8 lakh crore – is not deposited in banks within the deadline set by the government, the Reserve Bank of India has the authority to write this off. This will strengthen the economy of the nation to a great extent.
Another advantage of this decision will be that it will encourage people to switch to electronic form of money and depend less on cash. This will also make it easier for the government to trace money.