The demonetisation of Rs 500 and Rs 1,000 notes is a bold initiative to make a stronger economy and is expected to curb the capitation menace in the education sector, noted academicians said today.
In a bid to fight against black money, fake currency, corruption and terror financing, Prime Minister NarendraModi had announced demonetisation of Rs 1,000 and Rs 500 notes on Tuesday night.
As many as 31 faculty members from IIT Madras, including Ashok Jhunjhunwala, Pradeep T, Murty B, Krishnakumar R, Bhattacharya S K, Ravindra Gettu, Krishna Nandivada, have lauded the government’s initiative.
“Bank notes in circulation have been increasing rapidly over the last five years, growing as much as 40 per cent and contributing to inflation. We, therefore, welcome the government’s war on black money by pronouncing the existing currency notes of Rs 500 and Rs 1,000 as no longer valid,” they said.
The parallel economy in India is very strong and is estimated to be 25 per cent of the nation’s GDP.
“Even the education sector has been impacted by this, with college seats being sold for a fee left and right,” they said.
The total cash in circulation in the form of these two sets of notes (Rs 500 and Rs 1,000) is believed to be about Rs 14 trillion.
“Even if 20 per cent of this amount is not deposited in banks over the next two months, RBI could write this off and use it to recapitalise the banks and reduce the government’s fiscal deficit. The nation would have a much stronger economy,” they said.
They further noted that the move will lead to reduction in creation of new black money. “This step would go a great distance in freeing the nation from corruption, a malaise which affects all of us,” they said.