Today we are going to discuss the Demonetisation Essay.
Demonetisation Essay 300 Words
Demonetisation is the act of stripping currency units of its status as a legal tender. It occurs when current forms of money are pulled from circulation and replaced with new notes. Countries across the globe have used demonetisation to counterbalance the economic condition, to check inflation, corruption and to promote the cashless economy. Prime Minister Narendra Modi orchestrated this master plan on 8th November 2016 by demonetizing the largest denomination 500 and 1000 banknotes of Mahatma Gandhi series. This is not the first time that India demonetized its currency earlier it was done in 1946 and 1978.
The main objective of this step is to unearth the black money, counterfeit currency, terror financing and to curb corruption. As per RBI 87% transactions in India are cash transactions and this loophole is used by corrupted people to build a parallel economy with unaccounted money this money helps in terror financing which in turn hampers the growth and development of the country. Moreover, demonetisation also helps in reducing the fiscal deficit, encouraging higher tax payments and promoting the cashless economy.
Due to demonetisation, some negative impacts were also seen in a country like North Korea, Ghana, Nigeria and Zimbabwe. In India, it affects the tourism industry, small-scale business operations that deal in cash, Gross Domestic Product (GDP) decline to 6.1%, labour payments issue and it creates panic among the common man.
A well planned demonetisation system can prove beneficial for any economy. However, in the case of mishandled support, this may also cause a problem. Hence, public support must be sought for the overall success of this polity.
Demonetisation Essay 350 Words
The discontinuity of a particles currency from circulation and replacement of it with a new currency is called demonetization. Demonetization is one of the most trending topics which occupied the columns of Indian Newspaper on least 2016. On November 8, 2016, when everyone sat shuck to their television eagerly waiting for the announcement of the winner of the presidential elections for the USA. The Prime Minister of India Narendra Modi announced on television that rupees 1000 and 500 notes will no longer be a legal tender from midnight that day.
The announcement of demonetization tore the country into three categories, while some applauded the decision appreciating, calling it a bold decision others become a hardcore protestor, while some chose to remain fence sitters. The objectives behind this move are to attempt to make India a corruption free country, to curb black money and to stop fund flow to illegal activity. Corruption in India is not merely an evil of the society but an accepted part of every person’s life in the country. Removing that part with changing the currency of “cashless economy” has come up an idea of corruption and black money free India” and bringing transparency in the transactions.
According to transparency internationals corruption India, even though India is still the most corrupt country in Asia. Corruption related reposts have reduced by 10% since 2015. India rating and research had concluded that only 12% of the ill-gotten money could be extracted with the idea of demonetization while 88% of black money is still in circulation in the Indian markets. It is very difficult to predict the effect of this movie on the economy and the citizens in one sentence, destruction of fake money Indian economy will see a big boom. It will bridge the gap between the haves and have-nots. However, there may be so difficulties for a couple of months but this inconvenience shall be temporary and hardship in term may yield benefits in the long term.
Demonetisation Essay 400 Words
Demonetisation is a process of invalidating the currency of a country by its government. It means the demonetised currency will lose its legal tender value and that could not be used for transaction in future. Demonetisation is necessary whenever there is a change of National currency. The old unit of currency must be retired and replaced with a new currency unit.
The objective behind demonetisation of currency is to save the country from corruption, fake currency, black money, terrorism and hoarding of the currency by the businessmen/politician. It may also be used to reduces the cash flow in the economy and promote online transactions.
By demonetisation, all cash has to be deposited in the bank so the position of the banks and economy improves positively. Practice of holding cash because less so it reduces the corruption as all the bribe and other illegal transaction are being in cash format. It stops terrorism as terrorism mainly depends upon fake currency. Some negative effects of demonetisation are also may be seen as when a country demonetised any currency all the cash of that currency has to be deposited in the bank thus all people who have the same currency has to go back for depositing the same.
They have to stay hours for depositing the cash as there will be crowd to deposit the cash as even they have very few cash. The printing cost of new currency will be new load in that economy and all he demonetised currency has to be destroyed.
In my opinion, all the country have to demonetise all the big amount of currency from the economy after 20 to 30 years. It will positively affect the economy by reducing the practice of corruption, terrorism, fake currency, black money.
Recently India has demonetised 500 and 1000 note currency. In India economy, the total value of the above two notes was nearly 85% of total cash. To reduce the practice of corruption, terrorism, fake currency, black money and to promote the online transaction, this decision has been taken by the Indian government.
Demonetisation Essay 500 Words
Change in national currency, cancelling present currency and replacing it to a new currency, retiring old currency and prevailing new format of currency, terminating money value of currency or things is called demonetisation. In India, the honourable Prime Minister of India Shri Narendra Modi announced the ban of notes of rupees 500 and 1000. He announced this revolutionary decision on 8th November 2016. which totally shook up the country, especially the “Black money Holders”.
This decision was a shock for everyone in country. Some people admired and some people criticized. Fright of raid made many shopkeepers close their shops. People began to fix their black money, they began to deposit in accounts of their friends and relatives, even some people distributed money to deposit in accounts of strangers to exchange with new currency provided that “the stranger’ would take his part, some people throw their undisclosed income on roads. The poor ‘black money holders’ did it with a heavy heart, after all they gave their best to grab money from various resources.
This step almost drowned black money, terminating black money and fake currency was main objective. Along this, cancellation of currency almost controlled several illegal things. People hoped that it would control acts like terrorism, naxalism, violence, corruption, fake currency, black money and money laundering. According to Reserve Bank of India, three lac crore rupees deposited in bank accounts. Over three hundred anonymous properties identified and over three lac companies suspected. Lake of new currency and government also motivated people for cashless transactions.
Although demonetisation was for welfare of Indians but they had to face side effects also. Budget of common man affected. There were a long queue before banks and ATMs. These long queues and shock of demonetisation caused death for many people across the country. Main objective was to remove black money and fake currency but it is a noticeable thing that unfortunately demonetisation affected currency only. People who converted their money into diamonds, gold and other expensive things in place of keeping cash were completely unaffected. Some rumours also worked like kerosene in fire.
Brave work needs somebody to sacrifice. Also in ‘Demonetisation’, common man had to sacrifice as usual. Besides this, if somebody says that there was no need of demonetisation then please suggest a better way to terminate black money and fake currency in a single sweep. It was not a decision of a political party or Prime Minister, in fact “Demonetisation was a decision of human for human regarding the circumstances created by human”. Demonetisation is just like a bitter medicine and the bitter is better for health, but still people have different views about ‘Demonetisation’, after all India is a country of variations.
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