Banning 500 and 1000 rupees note is one of the historical reforms of Indian economy. Though this is one of the boldest move by the Government of India, it received a mixed reaction from people all over. Many appreciated the reforms with overwhelming support while many claim it a severe scheme causing hardship to the people. The motive of this reform is to recover the black money from the market which are stashed in the form of 500 and 1000 rupees notes. Though 500 and 1000 rupees note lost the market value still people can deposit in the bank within a definite period of time with their identity to in cash it in future. As such there is large crowd and rush in the queue up at banks and the ATMs in order to deposit 500 and 1000 rupees note and to withdraw money out of the ATM respectively. Total circulation of money has come to stagnant to quite an extend. As such people are running out of change causing disturbance in the smooth flow of economy.
However the rural economy get affected the most cause according to reports there are 10 lakhs banks all over and there are 6.8 lakhs village those who don’t have access to banks. The economy of rural area mainly thrives on currency exchange and most don’t even have the idea of banking. It will be no longer that they will have completely cashless transaction. In other world people with 500 and 1000 notes in rural areas with no proper identification will have tough time in currency exchange.
Many patients are suffering from lack of treatment as hospital and many medical institute refuse to take money in the form of 500 and 1000 notes. It was reported that a baby dies due to lack of treatment as the hospital refuse to get paid in 500 and 1000 rupees notes.
People with black money are facing problems who can’t tally their deposits to their income source, as such they are suffering huge loss. They have money but don’t have their value in market and can’t deposit in the bank. Fake currency holders are also facing the same as they can’t come in open with their cash.