As we all know very well that Demonetization is a process by which series of currency will not be legal tender. The series of currency will not be accepted as valid currency.
And the same thing happened on 8th Nov 2016, where Indian Govt. demonetized 500 and 1000 rupee notes that were in circulation, and announced the issuance of 500 and 2000 rupee notes. And all the news channels carried out this news only. Many people got shocked that why are they demonetizing the 500 and 1000 notes. Certain terms and conditions were set behind. Time limit was set to exchange old notes with new ones. The main reason for this move was to counter black money and fake currency.
People who have black money cannot be able to deposit the old currency easily. So good chunk of black money can be taken out of circulation, strengthening India’s economy.
This step will instill fear among tax evaders that they are not inescapable if they follow illegal practices.
This move is a big blow to the corruption, drug trafficking and smuggling, because of all these activities are carried out with black money.
Most of the fake currencies will be out of the system.
Old notes are allowed to be paid for utility bills. In one week span after the demonetization move, lots of outstanding bills are cleared which will be a positive impact on economy.
Common people should bear the inconvenience for the greater good of the society.
With this move, owners of informal organizations are more likely to register their organizations to transform into formal organizations. And as we can say that demonetization have its positive impacts but also its negative impacts too like, It caused lot of inconvenience to common people. People were formed to stand in long queues at ATM’s and banks as there was low limit of withdrawal each time.
People who were in emergency situations such as medical emergencies and marriage ceremonies suffered because of the present situation.
85% of transactions in India are cash transactions. So it may not be the right move to force everyone towards cashless transactions all of a sudden. And accordingly as we see, everyone has its own opinion some says that it’s a good move but some were opposed this decision.
So, basically it can be concluded that Demonetization of higher denomination notes is a good move but with ‘poor execution’. Govt. would have given alternatives for common people. It would have taken steps to avoid inconvenience to commoners or either this can strengthen India’s economy which could be said as beneficial but the question that arises after this move is that : Do you think, Demonetization of old higher denomination currency notes is a good move ??? Is it working or not !!!
Express your opinion in the comment section below.
Author: Charu Arora