Leaders Speak - November 2016

"Economics behind economic surgical Strike"

In previous Lok Sabha election as Bjp announced Mr Modi as PM candidate, he raises the slogan against corruption before election. 2015 is a landmark year as Modi become Prime Minister of India the raise voice against disguised economy. Opposition raising voice against Modi Govt is not serious about black money.
8 November 2016 PM, Modi announced at late evening Rs 500 and 1000 have not legal tender from Mid Night. One billion dollar question, what a reason behind such aggressive step
1) In a few monthsnthsago Pakistan sponsored cross border terrorism incrdrastically, which which is supported by fake Indian currency made in Pakistan.
2) Curbinging the black economy
As rupee 1000 and 500 lost its legal tender. Old currency will be replaced by bank in small amount in Bank initially it is only 4000.

You can deposit all your cash in bank account there is no limit. , unaccounted money legal legal validity checked by the government.

What will be economics behind this economic surgical strike. In India saving account 300000000. Suppose if minimum Rs 10000deposit in single, the impact 300000000 * Rs 10000 = 3000000000000 deposits in the bank. This means a huge cash transfer to the Bank. The impact of Bank has big liquidity.