PM Narendra Modi announced use of the denominations of Rs 5oo and Rs 1000 bank notes will be illegal now on in a bid to end the circulation of fake currencies and bring back black money. But sources in the BJP told Narada News that it was a masterstroke by the BJP and PM Modi who in one blow ended the scope for floating illegal funds into the Uttar Pradesh assembly election 2017. It is a known fact that political parties use black money to win over voters’ affection by illegal handouts like liquor and cash right before the elections.
Uttar Pradesh is politically the most significant state with 404 seats hence the stakes are high, especially for BJP which although won a decisive mandate in the Lok Sabha, is still in minority in the upper house of the parliament. “By ending the scope of circulating large amounts of black money during elections time, BJP is ensuring parties like BSP, and SP can’t rely on its time-tested formula of winning elections,” said the BJP source. More than the national interest, BJP is more keen on winning the Uttar Pradesh elections it seems.
Long queues were seen outside ATMs and petrol pumps after Modi announced the decision to make the Rs 500 and Rs 1000 currency notes illegal without taking into account the huge amount of inconvenience caused to the common man. “Black money and corruption are the biggest obstacles in eradicating poverty,” said the prime minister during his speech. Banks have been told to exchange existing high denomination rupee notes over the next 50 days.
People looked visibly frustrated at local shops as usually the ATMs dispense Rs 500 and Rs 1000 bank notes and the shopkeepers refused to accept it after Modi’s announcement, even though the government allowed their usage till midnight. India is overwhelmingly a cash economy with mostly Rs 500 and Rs 1000 currency notes used by the people.
However, BJP seems to have ignored the interests of their votebank of Patels, Marwaris, Sindhis, Jains, Baniyas and this is going to sting them in the near future. These business communities are historically wealthy and thrive in the financial industry. It is yet to be seen how the funding of the party will be affected after this move. The announcement to withdraw the Rs 500 and Rs 1000 banknotes from the financial system overnight will inevitably have its ramifications.