1-2 minutes speech on asl topic on demonetisation
Tomorrow is my ASL!!!!
Answers
The demonetization effort being led by PM Modi in India is that idea that Rs 500 and Rs 1,000 notes should no longer be a legal tender. It is not the first time currency is being changed. It has happened earlier also. In 1946 and 1978 high denomination notes were stripped off as legal tenders. These crusades were carried with an objective to unearth the black money, and to curb the corruption, counterfeit currency as well as terror financing.
Cash on hand is an estimated at around 3.2% of household assets. Of this cash, 87% is in the form of Rs 500 and Rs 1,000 notes. This shows that the high denomination notes play a major part in Indian economy.
Some of the major economic advantages of demonetization were:
1. Interest rates were lowered: Interest rates on credits came down as big waves of money were deposited in banks.
2. Fall of inflation: fall in money supply can actually help in bringing down inflation. Due to lesser demands, inflation rates were lowered.
3. Moving towards digital payments: Demonetization will likely result in people adopting virtual wallets such as Paytm, Ola Money etc. This behavioural change could be a game changer for India.
4. Illegal trade was put to an end: Sattabazi and illegal trading were stopped as notes they used had no value.
But as every cloud has a silver lining, there are side effects too. Some are,
1. Long queues at ATMs: Many people suffered and killed due to heat strokes and tiredness when they went to ATMs to withdraw money.
2. Slow GDP growth rate: In 2015 IMF declared that in 2016 India may throng China back in GDP rate but due to note ban China remained ahead with 0.1%.
Still after the note ban according to IMF in 2018, China’s growth rate is projected to be 6% against India’s 7.7%.
To sum up, In the long run, this move is going to benefit the nation. There will be less corruption; more investment; better infrastructure; and general improvement in everything. I strongly endorse the PM’s decision. Thank U.
- Phillipe