Write a short note on Demonetization of indian currency.Why it was done?,and how will it affect the indian Economy?
Dear Student,
a. Demonitisation is basically a policy initiative taken and enacted by the government of India , wherby Prime Minister Narendra Modi declared that all 500 and 100 Re notes will cease to be a legal tender and would be invalid.
b. It was rather a sudden announcement made by the Prime Minister in an attempt to unearth, unaccounted and black money.
c. It provided and gave 50 days notice to the general public to make deposit in the bank within a limit and also to exchange their old notes in the bank within a stipulated time for a specific amount.
d. Demonitisation , only impacted large currency notes, Re 10, 20, 50 , 100 were not effected and continued to be use.
e. The government also announced the release of new 2000 and 500 Re notes, which could be made available in the banks and in ATM's
f. The initiative taken by the government has been argue to check the growing circulation of fake currency in the economy, also to check growing corruption and black money.
g. It also sought to contain funding of terrorism and smuggling which was largely based on these high value currency notes.
h. Though , presently demonitisation has become talking point among the analysts, it is believed that it will have a long term advantage for the Indian economy as it will ensure that money comes through formal channel.
i, It also would ensure that money thus, deposited in the banks would be used for public utility services and would reduce the hiatus between the rich and the poor.
j. The decision has met with mixed responses, though some believe it was quite a bold move by the government ,and will benefit the economy in the future.
k. It is also argued that demonitisation would enhance country's revenue and expand India's economy.
l. There are also those who crticise the move taking into account the problems common man had to undergo in terms of standing in the long bank queues , it has also been alleged that it has impacted small traders and poor farmers the most because of cash shortage it created and also been alleged that there was a prior leak of information to the ruling party members.
m. Whether demonitisation would have a positive or detrimental impact on the economy is something that needs to be assessed in the near future.
Regards
a. Demonitisation is basically a policy initiative taken and enacted by the government of India , wherby Prime Minister Narendra Modi declared that all 500 and 100 Re notes will cease to be a legal tender and would be invalid.
b. It was rather a sudden announcement made by the Prime Minister in an attempt to unearth, unaccounted and black money.
c. It provided and gave 50 days notice to the general public to make deposit in the bank within a limit and also to exchange their old notes in the bank within a stipulated time for a specific amount.
d. Demonitisation , only impacted large currency notes, Re 10, 20, 50 , 100 were not effected and continued to be use.
e. The government also announced the release of new 2000 and 500 Re notes, which could be made available in the banks and in ATM's
f. The initiative taken by the government has been argue to check the growing circulation of fake currency in the economy, also to check growing corruption and black money.
g. It also sought to contain funding of terrorism and smuggling which was largely based on these high value currency notes.
h. Though , presently demonitisation has become talking point among the analysts, it is believed that it will have a long term advantage for the Indian economy as it will ensure that money comes through formal channel.
i, It also would ensure that money thus, deposited in the banks would be used for public utility services and would reduce the hiatus between the rich and the poor.
j. The decision has met with mixed responses, though some believe it was quite a bold move by the government ,and will benefit the economy in the future.
k. It is also argued that demonitisation would enhance country's revenue and expand India's economy.
l. There are also those who crticise the move taking into account the problems common man had to undergo in terms of standing in the long bank queues , it has also been alleged that it has impacted small traders and poor farmers the most because of cash shortage it created and also been alleged that there was a prior leak of information to the ruling party members.
m. Whether demonitisation would have a positive or detrimental impact on the economy is something that needs to be assessed in the near future.
Regards