Will PM Narendra Modi’s decision to eradicate black money affect Bollywood? Trade Experts put out their opinions

In a move to curb the black money menace, PM Narendra Modi declared that from today the currency notes of Rs. 1000 and Rs. 500 denomination will not be legal tender. This move has been lauded by everyone, with the general sentiment being that it is a much-needed antidote to wipe out black money. Within minutes after the announcement was done, Bollywood celebs came out in support of the whole cause and called it a masterstroke by Modi.

Well, this move will surely affect the citizens, but the question is, will Bollywood which in itself is a large industry and has a lot of transactions to carry forward on the daily basis, be affected. On these lines, we decided to talk to the trade experts and take their opinions based on these three parameters. Here’s what they have to say:

1. Will PM Narendra Modi’s decision to curb black money affect Bollywood in any manner?

Atul Mohan: It will definitely affect the box office for the short time. The cash crunch would be there till the Rs. 100 and the new Rs. 500 currency notes would be easily available in the market.

Akshaye Rathi: To be very honest, all the hypothesis about our industry being the largest one and filmmakers turning black money into white, I think is really a thing of the past. There was a time when Bollywood was funded by all sorts of entities and now if you look at the current scenario, all the films are backed by banners like Yash Raj Films, Fox Star Studios and Disney which will obviously not come with a suitcase to find an actor. I feel first of all this hypothesis needs to be corrected. The only kind of inconvenience I think is that in smaller towns, people at larger level are still not comfortable with the idea of using plastic money or online transaction. People in small towns still don’t know what BookMyShow or Paytm is. But I truly believe that in long term, this is a phenomenal measure because it will ensure that people who are housing black money have to essentially come what may take it back to the economy which in turn will boost the economy, including us.

Amod Mehra:  Earlier, you could say Bollywood was like 60 to 70% into cash, but now that has changed because of the corporates coming in last 10 years. Everything has become transparent. It’s like 99% of the black money has already been eradicated from the industry as far the production is concerned.

2. Would this affect the box office collections of films releasing this Friday?

Atul Mohan: For example, you have some of the movies releasing this Friday like Rock On 2 and if you have that amount of change in which you can buy the tickets food and beverages, then only you will go and watch the film. It won't affect those people who believe in transactions done through the credit or debit card.”

Akshaye Rathi: I tell what the silver lining in the dark cloud is that Rock On as a movie has never really catered to audiences in the small town or in the single screens, but it was always meant to be that urbany multiplex kind of a film and the audience which go to see such films will book through BookMyShow or Paytm. I think for a film like Rock On 2, it won’t have a big impact.

Amod Mehra: But as far as cinema is concerned, it would affect the box office collections of films releasing this Friday. The first priority for a normal human being would be to get ration paani at his home and not watch a film.

3. Will it leave impact on the schedules of films which are currently in the shooting stage?

Atul Mohan: For a big film like Padmavati, you need 5 lac to 10 lac cash on daily basis for shooting and it's going to be affected for a short time. An alternative could be that they will have to give cheques for the time being. In like another 4 weeks, things will be sorted because whenever a new thing is announced, you do take some time to adapt to it. Yes, this decision will surely affect all the monetary transaction in Bollywood, but for a short period of time.

Akshaye Rathi: I think at the production front, it will be pretty delightful for the producers because Padmavati is funded by Viacom18 and everything goes into the account of the producer. Now, whether it’s the labour that works on the sets or the stars, you can RTGS the stars and for the labourers you can withdraw an x amount on daily basis. As you know, a lot of construction labourers don’t have an account and a lot of them need that daily wages coming in cash. Now the good thing is, I hate to say this that all the shoots which happen in India, they are so many organisations, agencies and entities that disrupt your shoot and they demand their price, the producer just has to turn and ask ki aap card se loge ya cheque se loge because they are not 500 rs notes.

Amod Mehra: As far as shooting of the films is concerned, it might  get affected in terms of labourers working on the sets and that I feel is going to be the case everywhere in India.

What do you think about PM Modi’s bold move and will it affect Bollywood? Tell us in the comments below.