The sudden and path-breaking decision of the withdrawal of 500 and 1000 Rupee currency notes by the Indian Prime Minister Narendra Modi managed to create inconvenience among people at all levels. After the announcement, many people were seen in queues near the ATMs.
The announcement of 8 November 2016, which created a situation of havoc among citizens, is being considered as Modi’s fight against Black money. After the 2014 mandate, PM Modi promised that he will not allow those with black money to rest in peace and take actions against them.
But in this race to understand the cause behind the withdrawal of notes, we as public managed to forget to find the real face behind the idea.
Anil Bokil, a Pune-based Chartered accountant, is the person who ideated the formulae.
Who is Anil Bokil?
Bokil is the founder of Arthkranti Pratishtan, a non-governmental organization. His group has been openly promoting the theory of ArthaKranti- revolution in economics. He requested a meeting with the Prime Minister to put forward his take on financial reforms.
Minutes of the meeting with the Prime Minister
• Bokil and his team met Narendra Modi on July 2016. Modi initially gave Bokil 9 minutes to put forward his suggestions.
• He listed a five-point action plan to curb the widespread use of black money, main one including ban on high denomination currency notes.
• His impressive ideas intrigued Modi and stretched the 9-minute meeting to almost two hours.
About the Action Plan
• Complete withdrawal of the existing taxation system, which includes abolition of all 56 taxes barring customs duty and import levies.
• Introduction of a single banking transaction tax (2%) on all transactions.
• Withdrawal of high denomination currency (100, 500 and 1000 rupee notes).
• All high value transaction to be made only through banking system like cheque, Demand Draft, online and electronic medium.
• Restrict cash transaction to a certain limit and no taxing on cash transactions.
On an average in India, 2.7 Lakh worth transactions are conducted daily of which only 20% are done through banks and other traceable forms. Rest 80% is done entirely in cash, which is untraceable.