Before many of us could realize Prime Minister Narendra Modi has just decided to flush Rs 14 lakh crore or $217 billion – 86% of the value of Indian currency currently in circulation in a bid to crackdown black money, fake currency, and Terror Funding. The banning of old notes and bringing new notes will have a financial implication on the economy.
The Notes Replacement, the entire mechanism of replacement without troubling the common man etc will have all financial implications on the government and at the same time, the government did not release any figures about the quantum of black money they are estimating to come out with this move.
The idea can be called as Smart only if the Black Money quantum that is going to come out is more than the financial implications the move brings. As of now the financial experts are also not sure what the result will be since the announcement came all of sudden.