The Demonetization or Note Ban was a movement that was introduced in India during the 8th of November 2016 according to which the currencies that had larger monetary values such as Rs.1000 and Rs.500 was banned from existence and use of them was no longer legal. This act which came into existence overnight created a wave of shock as well as a surprise among people of the nation.
This movement was aimed at the following:
- To digitalize the transactions made even at the lowest possible levels.
- To bring out the wealth of the nation that are sleeping inside the country as black money, mainly in the denominations of 1000 and 500 rupee notes.
- To avoid corruption on the higher level.
How black many prevails inside Indian Film Industry:
Though Indian film Industry is considered to be one of the obvious places where the black money are dealt with in millions, during the demonetization none among from them seemed to affected by it. There was no dose of panic or breast-beating when the demonetization came into effect. That does not mean that people belonging to this film industry has clean hands. It was there but had already been converted into substantial capital holdings.
On visiting to any film production office, one can see a huge amount of voucher books lying around. The production managers of most of the people in the industry are a people in close associates who are capable of converting any amount of money from black to white and vice-versa.
Depending upon how famous they are and the salary they receive, the stars get these amount paid in various sources. The starts have been speculated to be receiving funds in the form of ‘Gold Guineas’, dubbing rights for various states or languages, in the form of real-estate bonds etc.,
The false vouchers for everything from fraud taxi bills, payments to junior artists that are over inflated and lunch bills for staffs who never exist, miscellaneous accounts, petrol charges for numerous cars, false hikes in production items and bills that are overstated from publicity and designs people. It goes on and on.
The number of voucher books used in a production unit is a good measure of the amount of black money paid to the stars. The smarter ones have their money invested in blue chips.
In Bombay there are around 150 of the agents and publicity people who make posters for inflated costs. For example, a banner or a poster which may cost around Rs.100 may be charged Rs.500 i.e. 5 times the price.
In the near present some people has started investing on the agriculture by some film bigwigs, since agricultural income is tax free.
But bribing has also been a problem for the big production houses. Since there is large money involved for big banner productions. Local politicians and local goons always have the practice of demanding money from these production houses. This could become a difficult task for the people to carry on after the demonetization and introduction of digital currencies.
Also the de-monetization did have immediate effects such as flop of some highly speculated films in the box office, other than this the industry did not see any more effects. Since the citizens were standing in bank queues rather than the theatre box-office. Also this was only for less amount in metro-Politian cities. The people used various digital currencies to pay for movie tickets.
But small production houses who used to pay money for daily wages for the employees were affected and the single screen owners who depended on daily box-office collection are the one who were most affected.
To conclude, demonetization did not have a much larger impact on cinema industry.