Whether one can accept this truth or not, this is a bitter medicine given by the Government of India to the people of India to dissolve black money issue. People of India will be heavily affected because of this Rs.500 and 1000 Banned suddenly and surprisingly. Anyone who needs to carry Rs 5000 or greater may have to carry loads of Rs. 100 or need to make a cashless transaction because of Rs. 500 and 1000 ban. We are completely unsure whether the government has enough supplies of Rs. 2000 and other new currency notes to circulate to the people of India.
All banks in India are helping people to know the details and to exchange Rs. 500 and Rs. 1000 old currencies into new ones.
We may expect a sudden price rise in few commodities were direct flows take place. For the next few months, people would queue to get low value currencies. Totally, all the lower middle class and the upper middle class will be running here and there to receive their cash needs. The only happiness is that in few hospitals and medical services are expected from this Rs. 500 and 1000 ban for few longer days. All the government hospitals would take old Rs. 500 and 1000 till November 11, 2016 as said by RBI (Reserve Bank of India). The only question amount the messes as to why was this ban issued suddenly without prior notice. We may guess that the government wants to give a surprise treatment to the black money holders. If that is so, we are unsure how much black money is going to be eradicated back to the government treasury back and what are their measures to bring back the foreign black moneys stored in foreign banks. On speaking about the poor class or BPL families, this ban may not affect them much. If a daily wage of Rs 100 to Rs. 500 would receive his amount daily without any issues to some extent.
If there is a cash shortage, the BPL earners may be affected as their payments may be delayed or may be forced to receive their earnings collectively in weekly or monthly salary to adhere to cash flow. Also, if there is price increase in commodities, it would somehow affect the poor people without any questions. On speaking about the elite classes, their black money cannot be utilized in any means and they may face issue with cash flow based business. Apart from this, we may not find any effects to elite classes. So, this bitter medicine is somehow going to affect the middle class and the poverty affected people and the difficulties of rich may be negligible.