This is not the first time that India has demonetized its currency, earlier it was done in 1946 with the complete ban of Rs 1000 and Rs 10000 notes to deal with the unaccounted money i. It is debated that implementation was not good, not all stakeholders were consulted in this project. Currently high- values notes account for total value of 86% of the notes in circulation in India. Other stated objectives included expanding the tax base and increasing the number of taxpayers; reducing the number of transactions carried out by cash; reducing the finances available to terrorists and radical groups such as Maoists and ; and integrating the formal and informal economies. Demonetization in India was the sensational news for the world in the latter half of 2016.
The step was taken to stop corruption in the country and to curb black money. Initially, the move to demonetise and try to hinder black money was appreciated, but the manner in which it was carried out by causing hardships to common people was criticised. Some other concerns that came to light was that even though people applauded the initiative, they were unsatisfied with the small window of time provided for both legal transaction of higher denomination currency and the short span of 50 days provided for exchanging or depositing your currency notes at bank branches or post offices. Currently high- values notes account for total value of 86% of the notes in circulation in India. Some were thrown out hospital because they had money in 500s and 1000s currency only. The objective is to curb black money, corruption and terrorism. I am not so sure.
The demonetization policy is meant to limit black money and to control the increased prices. On the other hand, due to offline transactions Government loss, lots of tax as all the transactions are not made legally in the country. I have come into a much darker world, with shadows deepening. Banning high-value currency will rein in criminal activities like terrorism etc. Demonetization 500 and 1000 notes in India is a move applauded by many people. It is a giant step towards the dream of making a digital India. The main objective of this move was to curb the black money, corruption and fake money menace.
इस blog post को अधिक से अधिक share कीजिये और यदि आप ऐसे ही और रोमांचिक articles, tutorials, guides, quotes, thoughts, slogans, stories इत्यादि कुछ भी हिन्दी में पढना चाहते हैं तो हमें subscribe ज़रूर कीजिये. We should welcome such brave step of Indian government which will curb black money to some extent. Recently the Indian government decided to demonetize the biggest denomination notes i. A vast portion of the fake money put in circulation is of the high regard notes and the restricting of 500 and 1000 notes will get rid of the circulation of fake money. Also, in rural areas the exchange and deposit system can be expected to take a long time in case there is a bank in the village and inconvenience in terms of transportation, additional expenses and time is easily foreseeable in case there is no bank in the village and the people have to go to the city for this purpose. People started counting the trash they had accumulated for years legally or illegally.
Even reputed foreign economists have called this demonetisation step a monumental blunder. The unemployment rate also declined from 7. I don't understand 'why some peoples are'nt supporting this? Though the people faced a lot of inconvenience owing to shortage of funds, they did not criticize the govt for the move. However, if we compare the merits verses demerits, it will be safe to conclude that the former outweighs the latter. There might be a great check on the terror-related funding and therefore, on terrorist activities. The government is finding it hard to implement this policy.
December 30, 2016, was set as the deadline for the redemption of the demonetized currencies. In Europe, when they introduced the Euro as European Union currency old currency was demonetized. Debates also took place concerning the move in both houses of. At first, the government had asked people to open a free account in the bank under Yan Dhan Yojna so that everyone can deposit their old currency to their bank accounts after demonetization in the country. Some people theoretically says it will benefit the economy as government will have more revenue but others say giving a electric shock to the economy when its already under distress business sentiment can send it into coma. The sudden declaration has made the situation wind up discernibly scattered. But later all became normal as usual.
This will help the income tax department to track individuals with high denominations currency. The former welcomed the demonetisation move by calling it bold step. All the people but those who were indulged in malpractices welcomed the move. Additionally, technologically advanced currency notes of denomination Rs. Note: We will keep updating this section whenever we educate ourselves more on this topic. The rate for the financial year 2016-17 was 7.
Support from Citizens Demonetization is one the strongest and riskiest decision taken by the Indian government in a long time. In terms of the impact on the economy, there has been speculation about deflation in the economy by one set of people due to expected fall in corruption and black money while the other expects inflation to take place due to speculated increase in investment of Gold, real estate and foreign currency. It has to bear the cost of printing of the new currency notes. To avoid increasing the fiscal deficit, the government would have to reduce spending on social schemes, or increase revenue through taxes or other means. Most by far of the overall public who have been concealing their wage is by and by constrained to way to deal with pronounce their compensation and pay force on the same. So the society will grow lesser materialistic and people more prudent.
In other words, if the plan does not seem to address all facets of the problem, it does not necessarily mean that it is an inadequate solution. This step is considered as the biggest cleanliness drive against the black money in the history of Indian economy. The day after the demonetisation announcement, crashed nearly 1,689 points and plunged by over 541 points. Those appreciating taking result will quit worsening rehearses as it will be hard for them to keep their unaccounted money. This parallel economy helps in terror financing which in turn hampers the growth and development of country. One is the logistical problem of handling all the money in case a large number of people choose the easier way of depositing all their cash in their bank accounts or of providing smaller denomination currency notes in case there is a huge demand for withdraw or exchange. We should welcome such brave step of Indian government which will curb black money to some extent.
The surrender rate had reached its highest. Most of the people who have been hiding their income are now forced to come forward to declare their income and pay tax on the same. With the fake money destroyed, Indian economy was expected to see a big boom and resultant so-far-booming-real-estate-sector fell on the ground. In 1978 the value of demonetisation was very small only 0. International Examples There are several important international examples of radical demonetization in various nations across the globe. The main objective of this step is to unearth the black money, to curb corruption, counterfeit currency as well as terror financing.